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Estate planning can help solidify finances and secure a person’s legacy upon their death.

Despite that, this crucial and useful step is often delayed and sometimes even avoided entirely. Modern estate planning is a vital component that can preserve assets and shield family members from emotional and financial turmoil during a stressful time, according to Charles Schwab.

An effective estate plan goes far beyond a single legal document. Attorneys typically advise five essential documents to cover both asset management and health care transitions. Here’s a deep look at the essential components of estate planning.

A last will and testament: A will outlines how tangible and intangible assets should be distributed A will also is where parents appoint legal guardians for minor children.

A living trust: This document helps manage property during an individual’s lifetime and facilitates a seamless transfer of assets to beneficiaries, allowing families to avoid the lengthy, public and costly probate court process, according to Drexel.

Durable power of attorney: MetLife says this grants a trusted individual the authority to oversee financial matters, pay bills and manage investments if the owner becomes incapacitated.

Healthcare power of attorney: According to New York Life Insurance, a healthcare power of attorney appoints a surrogate decision-maker to handle medical choices when an individual is unable to speak for themselves.

A living will: Also called an advance directive, this explicitly states an individual’s preferences regarding end-of-life medical treatments, such as mechanical ventilation or artificial nutrition, says the National Institute on Aging.

Despite the critical protection these documents offer, a gap remains between the necessity of estate planning and actual follow through by the public.

According to data from the Financial Industry Regulatory Authority National Financial Capability Study, only 54% of surveyed investors have a will in place.

Among the greater adult population, that percentage drops significantly, often driven by the misconception that a person is not old enough or wealthy enough to warrant an estate plan.

Without these legal designations, the responsibility to dictate asset distribution will fall to the court, where the deceased’s actual preferences may not be taken into consideration.

Ultimately, estate planning ensures that a person’s final chapters are defined by their own choices, shielding loved ones from administrative chaos and securing a family’s financial future.

It’s important that all adults speak with a qualified attorney about an estate plan at their earliest convenience.