Estate Planning Documents: 4 Must-Haves Before Retirement

Most people think of estate planning as something to handle eventually. A will might get written once, filed away, and forgotten. A beneficiary form may get filled out at a first job and never revisited.

Estate planning is not a one-time task. It is a living part of your financial plan that needs to keep pace with your life. Marriages, divorces, new grandchildren, job changes, and major asset shifts can all make an existing plan outdated without anyone realizing it.

This checklist covers the four documents every family needs, what each one does, and what to look for when reviewing yours.

What estate planning documents do I need for estate planning?

A complete estate plan does not require a complicated legal structure. For most families, four core documents form the foundation.

A current will, a durable power of attorney, a healthcare proxy, and updated beneficiary designations are the starting point. Each one serves a distinct purpose, and each one creates a specific problem when it is missing or out of date. 

Working through this list with your financial advisor and estate attorney is the most reliable way to make sure your plan reflects what you actually want.

Document 1: A Current Will

A will tells your family where you want your assets to go and who should manage your estate after you are gone. Without one, your state decides how your assets are distributed, following a standard legal formula that may not reflect your wishes.

Most estate planning attorneys recommend reviewing your will every three to five years, or after any major life event.

If you are unsure whether your will is current, that is a good reason to pull it out and read it.

Document 2: A Durable Power of Attorney

A durable power of attorney (POA) is a legal document that names someone to manage your financial affairs if you become unable to do so yourself. This includes paying bills, managing investments, and handling property.

Without a durable POA in place, your family may need to go to court to establish a legal guardianship before they can act on your behalf. That process takes time, costs money, and creates stress at an already difficult moment.

The person you name should be  someone you trust completely to act in your interest.

Document 3: A Healthcare Proxy

A healthcare proxy, sometimes called a healthcare power of attorney, names someone to make medical decisions on your behalf if you are unable to make them yourself.

This document works alongside a living will or advance directive, which outlines your specific wishes for medical treatment. Together, they give the people around you a clear picture of what you want, and the legal authority to act on it.

What is a durable power of attorney and do I need one?

Yes. Most financial and estate planning professionals consider a durable power of attorney an essential document for adults at any age, and particularly for those approaching or in retirement.

The "durable" designation means the document remains in effect even if you become incapacitated. A standard power of attorney typically expires if the person who created it loses capacity, which is precisely when it is most needed.

Document 4: Updated Beneficiary Designations

Beneficiary designations tell financial institutions who receives the assets in your retirement accounts, life insurance policies, and other financial accounts when you die. They are legally binding, and they override your will.

That last point is worth repeating. A beneficiary designation on a 401(k) or life insurance policy supersedes whatever your will says. An outdated form can send money to an ex-spouse, a deceased relative, or simply the wrong person, regardless of your stated intentions.

Beneficiary designations should be reviewed on every account you hold, including retirement accounts, life insurance policies, annuities, and bank accounts with transfer-on-death designations. Many financial institutions allow you to update these online.

What happens if my beneficiary designations are out of date?

Outdated beneficiary designations are one of the most common and costly estate planning mistakes families encounter. Because these designations operate outside of probate and override your will, there is often no legal mechanism to correct them after the fact.

Reviewing your designations takes less than an hour across most accounts. It is one of the highest-impact, lowest-effort steps in estate planning.

When should I review my estate plan?

Estate planning attorneys and financial advisors generally recommend reviewing your plan every three to five years, and after any of the following events:

• Marriage or divorce

• The birth or adoption of a child or grandchild

• The death of a named beneficiary, executor, or healthcare proxy

• A significant change in assets or financial situation

• A move to a different state

• A major change in tax law

Summer is a practical time for this review. Schedules are often more flexible, and families tend to be together in ways that make these conversations easier to have.

Estate Planning in Toledo, Ohio

Ohio has its own laws governing wills, powers of attorney, and healthcare directives. Working with an estate planning attorney familiar with Ohio law ensures that your documents are properly drafted, witnessed, and filed.

At MPM Wealth Advisors, we work alongside estate planning attorneys and other professionals to help our clients in Toledo and Northwest Ohio make sure the financial side of their estate plan is coordinated with the legal side. We look at beneficiary designations, account titling, and retirement assets as part of a comprehensive retirement plan.

If you have questions about how your estate plan fits into your broader financial picture, we are here to help.

Ready to review your estate plan?

A complete estate plan is one of the most important things you can do for your family. If it has been a few years since you have looked at yours, or if you are not sure where to start, we are happy to walk through it with you.

Schedule a conversation with the MPM team at mpmwealth.com/contact-us.