Most people don’t delay estate planning because it’s not important. Rather, they delay planning because they don’t know where to start, or believe that it’s only something relevant to the wealthy.

The reality is that estate planning is important for everyone, no matter your financial situation. This planning allows you and your loved ones the opportunity to organize your final wishes, designate trusted decision-makers, and make important information easily available for loved ones when needed.

Common estate planning documents may include a will, financial and healthcare powers of attorney, healthcare instructions, and, in some cases, a trust. Beneficiary records, an inventory of financial information, and other supporting instructions can also help keep your plan organized. Every family’s needs are different, but understanding these components is a good place to begin.

Disclaimer: This article is provided for general educational purposes and is not legal or tax advice. Estate-planning requirements vary, so consult a qualified attorney or tax professional about your specific circumstances.

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What Documents Are Commonly Included in an Estate Plan?

The specific documents will depend on your situation, but a basic estate plan often includes a will, financial and healthcare powers of attorney, healthcare instructions, beneficiary information, and an organized inventory of financial accounts and key records.

Common important estate planning documents include:

  • Last will and testament
  • Financial power of attorney
  • Medical power of attorney
  • Advance healthcare directive or living will
  • Revocable living trust (for some families)
  • Beneficiary designations
  • Financial and digital asset inventory
  • Letter of instruction

 An attorney can help determine which items belong on your estate planning checklist.

Last Will and Testament

A last will and testament is a legal document that outlines how a person wants certain assets distributed after death.

A will can name beneficiaries, appoint an executor, and nominate guardians for minor children where applicable. For many families, it serves as the foundation of an estate plan.

A will does not automatically avoid probate, and probate procedures vary by state. An estate-planning attorney can explain how a will fits into your overall plan.

Financial Power of Attorney

A financial power of attorney generally allows a designated agent to handle specified financial matters on someone else's behalf.

Depending on how the document is written, authority may be broad or limited and may begin immediately or under specific circumstances.

Responsibilities may include managing accounts, paying bills, or handling authorized financial transactions. Because powers of attorney carry legal consequences, they should be prepared with guidance from a qualified attorney.

Medical Power of Attorney and Advance Healthcare Documents

A medical power of attorney generally allows a trusted person to make healthcare decisions on your behalf if you cannot do so yourself.

Most people also prepare advance healthcare documents that communicate treatment preferences in conjunction with a medical power of attorney so there is no confusion about how to proceed in the event of an emergency.

In general:

  • A medical power of attorney identifies a healthcare decision-maker.
  • An advance healthcare directive communicates healthcare wishes.
  • A living will may address treatment preferences in certain situations.

Terminology and requirements differ by state, so legal guidance is important.

Revocable Living Trust

A revocable living trust is a legal arrangement that can hold assets and provide instructions for managing or distributing them.

Some families discuss trusts with an attorney because of specific financial, property, or family considerations. Others may determine that a trust is unnecessary.

What Is the Difference Between a Will and a Living Trust?

A will typically provides instructions that take effect after death, while a revocable living trust is generally created and managed during life.

Some estate plans use a will, while others incorporate both a will and a trust. The most appropriate approach depends on your goals, assets, family circumstances, and applicable state laws.

Beneficiary Designations and Account Ownership

Beneficiary designations identify who may receive assets connected to eligible accounts, while account ownership determines how those assets are titled.

Both are important parts of estate planning and should be reviewed alongside your other estate documents.

Why Are Beneficiary Designations Important?

Beneficiary records help ensure eligible accounts reflect your current wishes.

Life events such as marriage, divorce, births, deaths, and changes in relationships can make a beneficiary review worthwhile.

Retirement accounts, deposit accounts, insurance policies, and other eligible financial assets may offer beneficiary options. Families should discuss how beneficiary records, account ownership, and estate documents work together with a qualified attorney.

A Complete Inventory of Financial and Digital Assets

An organized inventory can help trusted family members locate important information more efficiently.

Your inventory may include:

  • Bank and financial accounts
  • Retirement accounts
  • Loans and recurring obligations
  • Insurance policies
  • Real estate
  • Important professional and personal contacts
  • Digital accounts and digital assets
  • Locations of key documents

Customers can review available account information through First Bank online banking.

When creating a financial or digital asset inventory, avoid storing passwords, authentication codes, PINs, or complete account numbers in an unsecured document. Our Fraud Prevention Center also offers educational resources for protecting sensitive financial information.

Letter of Instruction and Other Supporting Information

A letter of instruction is an informal document that provides practical information. It generally doesn’t replace legally enforceable estate-planning documents.

It may include contact information, document locations, household details, or personal wishes. Although it isn’t a substitute for a will or trust, it can help family members find and understand important information.

When Should You Review Estate Planning Documents?

Estate-planning documents should be reviewed after major life changes and periodically over time.

Common reasons to review your estate plan include:

  • Marriage or divorce
  • Birth or adoption
  • Death of a loved one
  • Relocation to another state
  • Significant financial changes
  • Business ownership changes
  • Changes involving beneficiaries, executors, or agents

How Often Should Estate-Planning Documents Be Reviewed?

There isn’t one review schedule that works for every family. Consider reviewing your estate plan periodically and whenever a major life event affects your family, finances, property, or chosen decision-makers.

An attorney can advise you on an appropriate review schedule based on your circumstances and applicable state laws.

How to Start Organizing Your Estate Information

You do not need to complete an entire estate plan in a single step. Start by gathering information and identifying areas that may require updates.

Helpful steps include:

  • Taking inventory of assets and obligations
  • Reviewing account ownership and beneficiary records
  • Gathering existing documents
  • Identifying trusted representatives
  • Scheduling a meeting with a qualified attorney
  • Creating a secure document-storage plan

You may also review information associated with your personal banking, savings accounts, CDs, IRAs, loans, and other financial accounts.

If you need help locating information related to your First Bank deposit or loan accounts, contact your local First Bank team or visit a nearby First Bank location. We can assist with account information but do not provide legal guidance.

Frequently Asked Questions

What are the most important estate planning documents?

Many estate plans include a will, financial and healthcare powers of attorney, and advance healthcare instructions. Some plans may also include a trust. Beneficiary records and an inventory of important assets, accounts, and documents can help support the legal plan.

The appropriate combination depends on your circumstances, goals, and state requirements.

Do I need both a will and a power of attorney?

Many people use both because the documents serve different purposes. A will generally addresses matters after death, while a power of attorney can authorize someone to act on your behalf during your lifetime.

An attorney can help explain which documents are appropriate for your situation.

What is the difference between a will and a living trust?

A will generally provides instructions that become relevant after death. A revocable living trust is generally established during life to hold and manage certain assets according to its terms.

Some estate plans use a will, while others include both a will and a trust. The right approach depends on the individual’s goals, assets, and circumstances.

Are beneficiary designations part of an estate plan?

Yes. Beneficiary designations are an important part of the broader estate-planning process. They should be reviewed periodically to help ensure they remain consistent with your current wishes and other estate documents.

How often should estate documents be updated?

Review your estate-planning documents periodically and after major life events. Marriage, divorce, births, deaths, moves, financial changes, and changes involving your chosen representatives may all justify an update.

Where should estate-planning documents be stored?

Estate-planning documents should be stored securely while remaining accessible to the appropriate trusted individuals when needed. Avoid placing sensitive account information or passwords in unsecured files. Your attorney can provide guidance on suitable storage and access arrangements for legal documents.

Take the First Step Toward an Organized Estate Plan

Estate planning often starts with organization. By reviewing beneficiary information, gathering key records, and learning which estate planning documents may apply to your circumstances, you can prepare for a more productive conversation with qualified legal and tax professionals.

If you need help locating information connected to your First Bank deposit or loan accounts, our local team is happy to assist with account-related questions. Contact First Bank or visit one of our local First Bank locations to get started.

For advice about wills, powers of attorney, trusts, taxes, or other legal matters, consult qualified professionals familiar with your circumstances.