Essential Estate Planning Documents Everyone Should Have
When people hear the term “estate planning,” they often think of the ultra-wealthy passing down grand estates, businesses, or millions of dollars. But estate planning isn’t just for the rich—it’s for everyone. Whether you own a home, have savings for retirement, or simply want to make sure your loved ones are cared for if something happens to you, estate planning is essential.
At the Law Office of Shabbick & Stehle, located in Bethlehem and Palmerton, Pennsylvania, we work with individuals and families from all walks of life, and we know how critical it is to have the right legal documents in place. Not only do they protect your assets, but they also provide peace of mind for you and clarity for your loved ones during some of life’s most difficult moments.
We’ll walk you through the essential estate planning documents every adult in Pennsylvania should have, why they matter, and how they work together to build a comprehensive plan.
Why Estate Planning Matters
Before we discuss the specific documents you’ll need, it’s worth understanding why estate planning is so important. It’s not just about distributing assets—it’s about making your wishes known and making sure that the right people are in place to carry them out.
Estate planning allows you to protect your loved ones by making sure they’re financially secure and your dependents are cared for. It helps reduce the impact of taxes and legal fees on your estate, gives you a voice in medical and financial decisions if you become incapacitated, and avoids confusion and conflict among family members during already stressful times.
Last Will and Testament
A last will and testament is the cornerstone of most estate plans. This legal document allows you to specify how your assets will be distributed after your death. It also lets you appoint a guardian for any minor children and name an executor to manage your estate through the probate process.
Without a valid will, your estate will be subject to intestate succession laws. That means your assets could be distributed in ways you wouldn’t have intended, potentially creating conflict or hardship for your loved ones.
Your will should include:
A list of your beneficiaries
Specific bequests (gifts of property or money)
Appointment of a guardian for minor children
Naming an executor to carry out your wishes
Be sure to choose an executor who is organized and trustworthy to help with the local probate process.
Durable Financial Power of Attorney
A durable financial power of attorney gives someone you trust the legal authority to handle your financial affairs if you become incapacitated. This document makes sure that your bills can be paid, your taxes filed, and your investments managed without court involvement.
In Pennsylvania, a power of attorney remains effective even after incapacity, which makes it particularly useful for aging individuals or those concerned about future medical issues. You can also tailor the powers granted to suit your preferences and comfort level.
Common powers granted include:
Access to bank accounts
Paying bills and debts
Managing real estate
Handling insurance claims
Filing taxes
It’s crucial to name a financially responsible person you trust, and consider listing a backup agent in case your first choice can’t serve.
Health Care Power of Attorney
The health care power of attorney allows you to designate someone to make medical decisions on your behalf if you can’t communicate or make decisions yourself. This document is vital during a serious illness, accident, or any situation in which you’re unable to speak for yourself.
Your agent will have the authority to talk with your doctors, review treatment options, and make informed decisions in line with your wishes. In Pennsylvania, this document must be signed while you’re of sound mind and should be reviewed periodically.
Your agent will be able to:
Communicate with doctors and medical staff
Decide on treatments and procedures
Consent to or refuse care based on your wishes
Have an open conversation with your health care agent about your values and medical preferences to make sure they can confidently act on your behalf.
Living Will
A living will, or advanced healthcare directive, outlines your preferences for medical care at the end of life. It guides your doctors and family if you’re in a terminal condition or a permanent unconscious state and unable to express your wishes.
This document helps eliminate uncertainty about what you would want and removes the burden from your loved ones of having to make those choices without guidance. It also makes sure that your wishes about artificial life support and life-sustaining measures are honored.
Included directives may cover:
Use of life support
Organ and tissue donation
Palliative or hospice care preferences
DNR (do not resuscitate) orders
Keep a copy of your living will with your medical records and give one to your health care agent and primary care doctor.
HIPAA Authorization
Under HIPAA regulations, your medical records are private—even from family members. A HIPAA authorization allows you to name individuals who can access your protected health information.
This document works hand-in-hand with your health care power of attorney to make sure your agent can speak with your medical providers, review your records, and advocate for you without legal obstacles.
You can name multiple individuals on a HIPAA authorization form. Many people list spouses, adult children, or close friends who may need access to this information in an emergency.
Revocable Living Trust
A revocable living trust is an optional but powerful legal arrangement that lets you transfer your assets into a trust during your lifetime. You retain control over the trust while you’re alive and mentally competent, and after your death, the assets are distributed according to your instructions—without going through probate.
This tool can be especially helpful for people with larger estates, blended families, or beneficiaries with special needs. It can also help maintain privacy since trust documents don’t become public like a will does during probate.
Some reasons to consider a trust include the following:
Avoid probate
Maintain privacy
Plan for incapacity
Control how and when assets are distributed
Creating a trust is just the first step—you must also fund it by transferring ownership of your assets into the trust. An attorney can guide you through this process.
Beneficiary Designations
Certain assets, such as retirement accounts and life insurance policies, pass directly to beneficiaries outside of your will or trust. That’s why it’s essential to keep your beneficiary designations up to date.
These designations take precedence over your will, so if you’ve named an ex-spouse or outdated contact, they could receive those funds regardless of your other estate planning documents.
Common accounts with beneficiary designations include:
IRAs and 401(k)s
Life insurance policies
Payable-on-death (POD) bank accounts
Transfer-on-death (TOD) brokerage accounts
Be sure to review your designations every few years and after major life changes such as marriage, divorce, or the birth of a child.
Letter of Intent
A letter of intent isn’t legally binding, but it’s incredibly useful. It’s your opportunity to provide personal guidance to your executor, trustee, or loved ones after your death or incapacitation.
This document can outline your funeral preferences, the location of important documents, login credentials for digital accounts, or messages to your loved ones. Think of it as a roadmap that complements your formal estate planning documents.
Common uses include:
Funeral or burial instructions
List of digital assets and passwords
Guidance for caring for pets
Messages to loved ones
Store your letter of intent with your other estate planning documents and keep it updated as your wishes or information change.
Guardianship Designations
If you have minor children, one of the most important parts of your estate plan is naming a guardian in your will. This is the person who would raise your children if you and your spouse or co-parent were no longer alive.
Without a guardian designation, the courts will decide who takes custody of your children, and that decision may not reflect your values or intentions. Nominating someone in your will helps avoid uncertainty and provides peace of mind for your family.
Choose someone who shares your parenting style and values. It’s also a good idea to have a conversation with your chosen guardian to confirm they’re willing and prepared for the responsibility.
Asset Inventory
An asset inventory isn’t a legal document, but it’s an incredibly helpful tool. It’s essentially a list of everything you own and owe. This helps your executor quickly locate your assets, pay your debts, and distribute your estate.
This inventory should include bank accounts, investment accounts, insurance policies, real estate, and any other valuable items. Include account numbers, institutions, and how to access each asset if applicable.
Be sure to include:
Bank accounts
Retirement accounts
Life insurance
Real estate holdings
Debts and liabilities
Safe deposit boxes
Digital assets
Update your inventory regularly and store it in a secure but accessible location. Let your executor know where it can be found.
Keeping Your Estate Plan Updated
Creating these documents isn’t a one-time event. As your life changes, your estate plan should change too. Marriage, divorce, the birth of a child, a significant change in financial circumstances, or the death of a loved one are all triggers to review and possibly revise your plan.
We recommend reviewing your estate plan every three to five years to confirm that your documents still reflect your wishes, that your agents and beneficiaries are current, and that any legal or tax-related changes are incorporated.
Work With an Experienced Estate Planning Attorney
Every family and individual is unique, and a cookie-cutter approach to estate planning rarely serves anyone well. Our attorneys at the Law Office of Shabbick & Stehle can help you assess your needs, explain your options, and draft customized documents that give you peace of mind. With locations in Bethlehem and Palmerton, Pennsylvania, we serve clients in Lehigh County, Northampton County, and Carbon County. Contact us today to begin planning for the future.