10 legal documents your family needs (and what they do)

A friend of mine lost her dad last year. He was organized in every other part of his life. Color-coded calendar, labeled shelves in the garage, the whole deal. But when it came to legal documents, he had a will from 2004 and nothing else. No power of attorney. No healthcare directive. No trust. Nothing about his online accounts.

It took her family fourteen months and over $22,000 in legal fees to sort it all out. And the worst part wasn't the money. It was the arguments. Siblings who loved each other started fighting because nobody knew what Dad actually wanted.

This post is the reference list I wish someone had handed him. Ten legal documents, each explained in plain English: what it does, what happens if you skip it, and roughly what it costs. No legal jargon, no philosophy. Just the list.

If you're brand new to this and want a gentler starting point, read our end-of-life planning 101 guide first. If you already have documents and want to make sure they'll actually hold up, we cover that in ensuring your wishes are legally binding. This post sits between those two: it's the complete checklist.

Bookmark it. Come back when you're ready.

The 10 documents

Here's the quick list before we go through each one:

Last will and testament
Revocable living trust
Irrevocable trust
Durable power of attorney (financial)
Healthcare power of attorney (health care proxy)
Living will / advance directive
Beneficiary designations
Guardianship designations
Letter of intent
Digital asset plan

Now let's walk through them.

1. Last will and testament

What it does: Spells out who gets what when you die. You name beneficiaries for your assets, name an executor to manage the process, and if you have minor children, this is where you name their guardian.

What happens without it: Your state decides who gets what, following a formula called intestacy laws. That formula doesn't know your sister should get the house or that you haven't spoken to your cousin in fifteen years. The court appoints an administrator, and everything takes longer and costs more.

How to get one: An estate attorney can draft one for $300 to $1,000. Online services like LegalZoom or Trust & Will run $90 to $250 for straightforward situations. It needs to be signed, witnessed (usually two witnesses), and in some states, notarized.

Good to know: A will goes through probate, a court-supervised process. It becomes public record, and it can take months. For larger estates, a trust (see below) can help you skip it.

2. Revocable living trust

What it does: Holds your assets during your lifetime and transfers them to your beneficiaries after you die, without going through probate. You create the trust, transfer assets into it, and name a successor trustee. While you're alive, you keep full control and can change or dissolve it.

What happens without it: Your estate goes through probate, which can mean months of waiting, thousands in court costs, and your financial details becoming public record.

How to get one: An attorney typically charges $1,500 to $3,000. Online options exist in the $300 to $600 range for straightforward situations. The catch: you need to actually fund the trust by transferring assets into it. A trust that owns nothing doesn't help anyone.

Good to know: A revocable trust does not reduce your taxes. The assets are still considered yours for tax purposes. Its main advantages are avoiding probate and maintaining privacy.

3. Irrevocable trust

What it does: Like a revocable trust, but once you set it up, you generally can't change it or take the assets back. In exchange, those assets leave your taxable estate (lowering estate taxes) and are protected from creditors.

What happens without it: If your estate is large enough to trigger federal estate tax (above $13.61 million per individual in 2024) or your state has a lower threshold, your heirs could owe a big tax bill.

How to get one: These really do require an attorney. Expect $2,000 to $5,000+ depending on the type. There are many varieties (charitable trusts, special needs trusts, life insurance trusts), each for a different purpose.

Good to know: Most people don't need an irrevocable trust. If your estate is under the federal exemption and you're not worried about creditor protection, a revocable trust and a will are plenty.

4. Durable power of attorney (financial)

What it does: Names someone you trust to handle your financial affairs if you can't: paying bills, managing investments, filing taxes, selling property. The "durable" part means it stays in effect even if you become mentally incapacitated.

What happens without it: Your family has to petition the court for a conservatorship. That can take months, cost $2,000 to $10,000+, and a judge decides who manages your money. Meanwhile, bills go unpaid and accounts sit frozen.

How to get one: $200 to $500 with an attorney, or included in an estate planning package. It needs to be signed and notarized.

Good to know: Pick someone who is both trustworthy and organized. Have a direct conversation with them about your values, your debts, and where your accounts are. Name a backup agent too.

5. Healthcare power of attorney (health care proxy)

What it does: Names someone to make medical decisions for you when you can't speak for yourself. This is separate from a living will (see below). The healthcare proxy is a person; the living will is a set of instructions.

What happens without it: Doctors turn to your next of kin, following a hierarchy that varies by state (usually spouse, then adult children, then parents, then siblings). If family members disagree about your care, things get painful fast. In the worst cases, disputes end up in court while you lie in a hospital bed.

How to get one: Usually $100 to $300 if done separately, or included in an estate planning package. Many hospitals and state health departments offer free forms.

Good to know: Talk to your healthcare proxy. Not a casual mention over dinner, but a real conversation about what you'd want if you were on life support or in a permanent vegetative state. The more specific you are, the less they have to guess during the worst moment of their life.

6. Living will / advance directive

What it does: Puts your end-of-life medical wishes in writing. Do you want to be kept on a ventilator? Do you want tube feeding? CPR if your heart stops? A living will answers these questions so your family and doctors don't have to guess.

What happens without it: Your healthcare proxy (or next of kin) makes these calls based on what they think you'd want. Sometimes they guess right. Sometimes family members disagree, and those disagreements can fracture relationships. In extreme cases, a court decides.

How to get one: Often included with a healthcare proxy as an advance directive package. Separately, expect $100 to $300. Many states offer free forms through their health department websites.

Good to know: A living will only kicks in when you're terminally ill or permanently unconscious. Pair it with a healthcare proxy for full coverage.

7. Beneficiary designations

What it does: Tells financial institutions who should receive the money in your accounts when you die. This applies to life insurance policies, 401(k)s, IRAs, pensions, and sometimes bank and brokerage accounts (through payable-on-death or transfer-on-death designations).

What happens without it: The money may go to your estate and then through probate, delaying access and costing money. Worse, the wrong person inherits. A common problem: someone forgets to update a beneficiary after a divorce, and an ex-spouse gets the retirement account.

How to get one: Free. You fill out a beneficiary designation form with each financial institution. Most can be done online in ten minutes. Cost: $0.

Good to know: Beneficiary designations override your will. Read that again. If your will says your daughter gets your IRA but the beneficiary form still lists your ex-wife, your ex-wife gets the IRA. Review these every time something major changes in your life: marriage, divorce, birth, death.

8. Guardianship designations

What it does: Names who will raise your minor children if you die or become permanently unable to care for them. This is typically included in your will, though some states allow a separate guardianship designation document.

What happens without it: A court decides who raises your kids. The judge doesn't know your family. They don't know that your brother-in-law is great with kids or that your sister, despite being the obvious choice, travels 300 days a year. Family members may fight over custody, which is traumatic for everyone, especially the children.

How to get one: Usually included in your will at no extra cost. A standalone designation runs $100 to $300. The real work isn't the paperwork; it's the conversation. Ask the people you're naming directly. Make sure they're willing.

Good to know: Name a backup guardian. Consider naming someone different for financial management if the best caregiver for your kids isn't the best person to manage money.

9. Letter of intent

What it does: A personal letter to your family that covers everything the legal documents don't. Funeral preferences. Where to find the safe deposit box key. The story behind Grandma's ring and why it should go to your youngest. Passwords and account information. Personal messages to people you love. This is where your legal documents to secure your legacy meet your actual human legacy.

What happens without it: Your family figures it out on their own, which they will. But they'll second-guess themselves. Did Mom want to be buried or cremated? Would Dad have wanted a big service or something quiet? Where is the title to the car? Small questions become big stressors during grief.

How to get one: Cost: $0. You write it yourself. No attorney needed, no witnesses, no notarization. It's not legally binding, but it can be the most meaningful document you leave behind. This is exactly what When I Die Files is built to help you create.

Good to know: A letter of intent works best alongside your legal documents, not instead of them. Update it when your life changes. And don't just write the practical details. Tell your kids what you're proud of. Tell your partner what they meant to you.

10. Digital asset plan

What it does: Provides instructions for your digital life: email accounts, social media profiles, cloud storage, cryptocurrency wallets, subscription services, and online financial accounts. It can be a formal trust document, a section in your will, or a detailed list paired with your letter of intent.

What happens without it: Your family can't access your accounts. Facebook has a memorialization process. Google has an Inactive Account Manager. Apple will delete everything unless someone gets a court order. Cryptocurrency without access credentials is gone forever.

How to get one: A formal digital asset trust runs $500 to $1,500 with an attorney. But most people can handle this with a detailed list of accounts, credentials, and instructions stored securely. Check our guide on how to safely store important documents for storage methods.

Good to know: Many states have adopted laws giving your executor legal authority to manage digital accounts. But they still need to know those accounts exist. Write them down.

What this actually costs

If you're doing the math, here's a rough breakdown:

The basics (will + power of attorney + healthcare directive + beneficiary designations): $500 to $1,500 with an attorney. Under $300 with online services. This covers most people.

The full package (add a revocable trust): $2,000 to $4,000 with an attorney. This makes sense if you own property, have a blended family, or want to avoid probate.

Complex estates (add irrevocable trusts, digital asset trusts): $5,000+ with a specialized estate attorney. This is for larger estates, business owners, or situations with specific tax or creditor concerns.

The cheapest option? Do nothing, and let your family pay five to ten times that amount cleaning up the mess later.

Where to start

You don't need to do all ten at once. If you're going to do one thing this week, make it this:

Check your beneficiary designations. Log into your retirement accounts, life insurance, and bank accounts. See who's listed. Update anything that's wrong. This takes thirty minutes and costs nothing.
Schedule an appointment with an estate attorney. Even a one-hour consultation ($150 to $350) will tell you exactly which documents you need based on your specific situation.
Write your letter of intent. Sit down with a cup of coffee and start writing. It doesn't have to be perfect. It just has to exist. You can always revise it later.

The legal documents protect your assets. The letter of intent protects your relationships. Together, they're a complete plan. And completing them is the best gift you can give the people who will miss you most.