Essential Estate Planning: Documents Everyone Should Have

Estate planning may seem complex, but it’s a vital process to make sure your wishes are respected and your loved ones are taken care of. Regardless of where you live, whether in the United States, Canada, the United Kingdom, New Zealand, or Australia - a few key documents are essential to any good estate plan. Here’s a breakdown of these critical documents and why they matter.

1. Last Will and Testament

Think of your Last Will and Testament as your formal instructions for what happens to your belongings after you’re gone. This document names your beneficiaries (who will inherit your assets), appoints an executor (who will carry out your wishes), and, if applicable, designates guardians for any minor children.

• Globally: The requirements are simple and similar across the board - your will should be in writing, signed by you, and witnessed by two people.

Without a Will, your estate could be divided according to the laws in your country, which may not align with your personal wishes and can cost your estate a lot of money if you do not manage this process properly.

2. Power of Attorney (POA)

A Power of Attorney (POA) gives someone the legal right to make decisions on your behalf if you’re unable to. This can cover finances, property, or personal matters, depending on how your POA is structured.

• Around the World: In the United Kingdom, it's known as a Lasting Power of Attorney, while Australia and New Zealand refer to it as an Enduring Power of Attorney. It’s typically used for either property and financial affairs or health and welfare.

A POA ensures that a trusted person is there to make important decisions for you if you’re unable to do so.

3. Advance Healthcare Directive

Also known as a Living Will, this document lets you outline your preferences for medical treatment if you’re unable to speak for yourself. This is a crucial part of any estate plan, as it ensures that your healthcare decisions are respected, even when you can’t voice them.

• Internationally: In the United States, it’s called an Advance Directive, while the United Kingdom uses the term Advance Decision. Canada and New Zealand also have similar directives that allow people to express their healthcare wishes in advance.

With an Advance Healthcare Directive, you’re able to communicate your values and preferences about medical treatments and end-of-life care.

4. Trusts

A Trust is a legal arrangement where assets are held by a trustee on behalf of beneficiaries. Trusts can be used to manage how assets are distributed, provide tax benefits, and protect assets for specific purposes.

• Globally: Trusts are common across many countries, with Revocable Living Trusts popular in the United States and Family Trusts in New Zealand and Australia.

By creating a trust, you can make sure your assets are distributed according to your terms, and it can often make things easier for your loved ones by avoiding probate.

5. Beneficiary Designations

Certain assets - like life insurance policies, retirement accounts, and pension funds, allow you to name beneficiaries directly. This designation often overrides instructions in your will, so it’s crucial to keep these updated.

• Worldwide: From 401(k) plans in the United States to Registered Retirement Savings Plans (RRSPs) in Canada and KiwiSaver accounts in New Zealand, beneficiary designations are recognised across the board.

This simple step of naming a beneficiary ensures that specific assets go directly to the people you want, often without the need for probate.

6. Guardianship Designations

If you have minor children, it’s essential to designate a guardian in your will to ensure they’re cared for by someone you trust if anything happens to you.

• Globally: Guardianship designations are a standard part of a Will in most countries, with court approval typically required.

This designation allows you to have a say in who will take care of your children, providing them with stability and protection.

7. Digital Estate Plan

In today’s digital world, a Digital Estate Plan is becoming increasingly important. This plan covers your online accounts, social media profiles, and digital assets, ensuring they’re managed according to your wishes.

• Across Nations: Digital assets are treated as part of an estate in most places, but laws are still evolving. Creating a list of digital assets and passwords can help your executor or digital representative manage your online presence after you’re gone.

This step is crucial for protecting your online identity and ensuring that your digital life is handled appropriately.

8. Letter of Intent

A Letter of Intent is a personal, non-legal document that includes any additional instructions or messages you want to leave for your loved ones. It’s often used to explain certain wishes that aren’t covered in other documents or to leave a personal message.

This letter isn’t a legal requirement, but it can be a meaningful way to pass on wisdom, share stories, or provide extra guidance to your family.

Why Estate Planning Matters

Having these essential estate planning documents ensures that your wishes are respected and your family is cared for. Planning ahead can give you peace of mind and relieve your loved ones from the stress of having to make decisions on your behalf. Regardless of where you live, creating an estate plan is one of the most thoughtful things you can do for those who matter most.

If you’re ready to take the first step in organising your estate, iDecide offers tools to simplify the process, making it easy for you to plan, store, and share what matters. Start building your legacy today.