Most people don’t need a complicated legal plan. They need a simple, documented system that works in real life—when someone is in the ER, when a bill needs paying, or when a family member needs access to an account today, not after weeks of paperwork.
Use this checklist once a year. If you complete the first half, you’re already ahead of the average household.
Table of Contents
Name a healthcare decision-maker
If you can’t speak for yourself, a health care proxy (sometimes described as a durable power of attorney for health care) lets someone you trust make medical decisions on your behalf. Medicare’s overview describes the proxy and how it differs from a living will.
Do this:
- Pick one primary person and one backup.
- Tell them what you’d want in big scenarios (life support, resuscitation, long-term care).
- Store the document where it can be found quickly (see item #9).
Write an advance directive / living will
A living will (advance directive) records your preferences for certain end-of-life situations. The National Institute on Aging summarizes what living wills are and why they matter.
Do this:
- Keep it simple and specific (what you do/don’t want, organ donation preferences if you have them).
- Review it after major life changes (marriage/divorce, serious diagnosis, new child).
Set up a financial durable power of attorney
This is the “keep my life running” document: paying bills, dealing with banks/insurance, signing paperwork, managing property while you’re alive if you’re incapacitated.
Do this:
- Choose an agent you’d trust with your bank account.
- Ask your attorney (or your state’s official resources) what execution rules apply where you live (witnessing/notary requirements vary by state).
Make a basic will (yes, even if you’re not wealthy)
A will is how you name:
- who gets what,
- who will handle the process (executor/personal representative),
- and guardians for children (if relevant).
Even a simple will reduces confusion and conflict. If you want “minimal but effective,” focus on guardianship (if needed), executor, and a clean distribution plan.
Audit beneficiary designations (this is where people mess up)
Many major assets transfer by beneficiary form, not by your will: retirement accounts, many insurance policies, and some financial accounts. The IRS explains beneficiary designations for retirement plans/IRAs and how plans handle them.
Do this:
- Check beneficiaries on: 401(k)/403(b), IRA, life insurance, brokerage, and any “payable on death / transfer on death” designations.
- Add contingent (backup) beneficiaries.
- Update after life events (marriage, divorce, death in the family).
Consider “POD/TOD” designations where appropriate
For some bank or brokerage accounts, a “payable on death” (POD) or “transfer on death” (TOD) designation can simplify transfer and reduce probate friction.
Do this:
- Use POD/TOD for accounts where it makes sense.
- Confirm the designation is documented correctly with the institution.
Quick caution: deposit insurance rules can be misunderstood; FDIC coverage has specific categories and limits (for example, single accounts are insured up to the standard limit at an insured bank).
If you own real estate, don’t DIY the transfer strategy
Real estate is where “cheap shortcuts” become expensive mistakes. States differ on what works best (trust, TOD deed, joint ownership structures, etc.).
Do this:
- If you own property, ask a local estate attorney for the simplest strategy that matches your goals (avoid probate, protect spouse/kids, plan for incapacity).
Check your insurance basics (because lawsuits and accidents happen)
You don’t need perfect coverage. You need coverage that won’t ruin you.
Do this:
- Auto: confirm you understand your liability limits and uninsured/underinsured coverage.
- Home/renters: ensure you actually have an active policy and the deductible is realistic.
- If you have dependents, consider whether life insurance is necessary (term life is often the simplest).
Create a “When I’m Unavailable” folder
The best documents are useless if nobody can find them.
Include:
- health care proxy, advance directive, financial POA, will
- insurance policy numbers
- list of key accounts (no passwords on paper; just the institution + last 4 digits)
- emergency contacts
- a short “what to do first” note
Store it physically (folder) and digitally (encrypted storage). Tell two trusted people where it is.
Do a yearly 30-minute review
Put it on your calendar. Legal planning rots without maintenance.
Update after:
- marriage/divorce
- moving states
- new child
- major asset purchase
- death of a beneficiary/executor/agent
If you do nothing else this month, complete items 1, 3, 5, and 9. Those four steps cover the most common “what if something happens?” scenarios: medical decisions, financial access, beneficiary mistakes, and document access. Laws and forms vary by state, so treat this checklist as a starting point—and consider a quick review with a qualified local attorney if you own property, have dependents, or have a complex family situation.
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