Estate Planning Basics: The Documents Every Family Needs (and Why They Must Stay Updated)

When people think of estate planning, they often imagine something only the ultra-wealthy need. But here’s the truth: if you have a bank account, a retirement plan, a home, or children, you need an estate plan.

Over the past month, we’ve seen families facing avoidable stress because their estate documents were missing, outdated, or incomplete:

• A son discovered his parents’ will hadn’t been updated in over 40 years.

• A daughter struggled to make medical decisions for her mother with dementia because no health directive existed.

• A young couple scrambled to put guardianship and beneficiaries in place for their children.

• A recent divorcee realized their assets might pass to an ex-spouse instead of their kids.

Different circumstances, same problem: estate planning that wasn’t set up — or wasn’t kept current.

The Core Documents Everyone Should Have

At a minimum, every adult needs these four:

• Will — Directs how your assets are distributed and names guardians for children.

• Durable Power of Attorney (POA) — Appoints someone you trust to manage finances and legal matters if you can’t.

• Health Care Proxy / Advance Directive — Lays out your medical wishes and prevents family disputes.

• Beneficiary & Contingent Beneficiary Designations — On retirement accounts, insurance, and bank accounts. These override your will, so keeping them current is critical.

The Role of Trusts

For many people, wills aren’t enough. Trusts can simplify transfers, protect assets, and reduce taxes.

• Revocable Living Trust — Flexible, can be changed at any time, helps avoid probate, and keeps transfers private.

• Irrevocable Trust — More permanent but offers estate tax advantages and creditor protection. Often used for larger estates or advanced planning.

Why Updating Matters

Having the documents is one step. Keeping them current is the real key. Major life events — marriage, divorce, children, grandchildren, business growth, health changes — all mean it’s time to review.

If your will is decades old or your retirement account still lists an ex-spouse as beneficiary, your plan may not reflect your true wishes.

Special Considerations for Business Owners

Estate planning for business owners comes with extra layers:

• Succession Planning — Who runs the business if you’re not here?

• Buy-Sell Agreements — Ensures co-owners and family aren’t left fighting.

• Trust Planning — Holding business interests in trust to protect value and avoid probate.

• Liquidity Planning — Making sure there’s enough cash to cover taxes and expenses so your family doesn’t have to sell the business under pressure.

Without these steps, your life’s work could be dismantled in months.

Why Guidance Matters

Estate planning isn’t just paperwork. It’s about protecting your family, your wealth, and your wishes. An advisor can:

• Help review your documents regularly.

• Coordinate with attorneys so your financial and legal plans work together.

• Make sure beneficiaries, wills, trusts, and accounts are aligned.

The Right Next Step

Most people put estate planning off — until something happens. By then, it’s too late.

The Right Retirement Plan™ starts with education, but it doesn’t end there. If you haven’t updated your will, checked your beneficiaries, or considered trusts, now is the time to act.

We are here to help.

⚖️ Disclaimer: This content is for educational purposes only and is not legal advice. Please consult with an estate planning attorney for document preparation or legal guidance.