The Three Essential Estate Documents Everyone Should Have
- Marc Lowe
- Feb 4
- 4 min read
Updated: Feb 5
Estate planning isn’t just about protecting your assets — it’s about protecting you and the people you care about. A thoughtful plan ensures your wishes around medical care, religious preferences, end‑of‑life decisions, and even where you want to be cared for are honored if you’re ever unable to speak for yourself. It also eases the burden on loved ones who may one day need to make decisions without your input. And if you have minor children, estate planning is the only way to legally establish who will care for them.
I was reminded recently of just how important this is. I met someone whose father had passed away unexpectedly. He had done “most” of his estate planning — the house was in the trust, the accounts were titled correctly — but one asset slipped through the cracks: his boat. Because it wasn’t included in the trust and no beneficiary was named, the boat fell under intestacy laws. That meant the neighbor, who had a partial ownership claim from years earlier, was legally entitled to half of it. The family was stunned. A simple oversight created a complicated, emotional, and expensive situation that could have been avoided with a complete, up‑to‑date plan.
Stories like this are why estate planning is something to take seriously now, no matter your age or life stage.
Planning Ahead Means You Decide What Happens
If the unexpected happens — you become incapacitated or your children are left without a parent — having a plan in place ensures your wishes are carried out. Without one, the courts will decide who cares for your children, how your assets are handled, and what type of medical care you receive.
The good news: a few essential documents can give you control and clarity.
The Three Essential Documents Everyone Should Have
A complete estate plan starts with three core legal instruments:
A will to appoint a guardian for minor children and outline how your assets will be distributed
A health care proxy to specify your medical wishes and designate someone to make decisions on your behalf
A durable power of attorney to give a trusted person the authority to manage your finances and pay for your care
Let’s take a closer look at each of these.
1. Creating a Will
A will is the foundation of most estate plans. It’s the only legal way to name a guardian for your minor children, and it also gives you control over who inherits your assets and how they’re distributed.
However, wills must go through probate, which can be lengthy, costly, and public. That’s why many families pair a will with other planning tools — but a will is still essential.
Because guardianship and estate law are highly specialized, it’s wise to work with an attorney who focuses specifically on wills and estates. If your child has unique needs or your family situation is complex, a specialist can help you build a comprehensive plan. Your financial advisor may also be able to refer you to a trusted local firm.
2. Determining Your Health Care Proxy
A health care proxy appoints someone you trust to make medical decisions if you cannot. It can also outline your preferences for:
Types of treatments you want (or don’t want)
Doctors or hospitals you prefer
When you want to stop receiving care
Religious or personal considerations
Some states require a separate living will to document your medical preferences. Together, these documents are often called an advance directive.
Other states — like Massachusetts — offer a simple, combined form that becomes legally binding once signed and witnessed. Your doctor’s office is often a great place to start; they’ll know what’s required in your state and may even have the forms available.
If your state doesn’t offer a standardized document, an attorney can help you create one.
3. Creating a Durable Power of Attorney
A durable power of attorney (DPOA) gives someone you trust the authority to manage your finances if you become incapacitated. Unlike a standard power of attorney, a durable one remains in effect even if you lose the ability to make decisions.
Your agent — sometimes called your “attorney‑in‑fact” — can:
Pay your bills
Manage your accounts
Pay for your care
Hire professionals on your behalf
This document must be drafted by an attorney, and choosing the right person is critical.
They don’t need to be a lawyer — just someone responsible, organized, and trustworthy.
If you'd like to learn about how we can help facilitate the creation of your estate documents, feel free to book a free initial consultation below.
About the Author
Marc Lowe, CFP® is a fee-only fiduciary advisor based in Waterford, CT, helping pre-retirees & small business owners make smarter financial decisions.
The information presented in this article is the opinion of the author and does not reflect the views of any other person or entity unless specified. The information provided is believed to be reliable and obtained from reliable sources, but no liability is accepted for inaccuracies. The information provided is for informational purposes and should not be construed as advice. Advisory services offered through In The Money Retirement, an investment adviser registered with the state of Connecticut. The information linked to on third-party sites is being provided strictly as a courtesy and convenience. We make no representation as to the completeness or accuracy of information provided at these websites. When you access these websites, you are leaving our website and assume any and all responsibility and risk for use of the web sites you are visiting.The tax and estate planning information offered by the advisor is general in nature. It is provided for informational purposes only and should not be construed as legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation.
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