Contributed By: Brian Sak, CFP, CLU, ChFC
Estate planning is often viewed as a task to be handled "later." For many successful individuals and families, it’s easy to deprioritize because it involves difficult conversations—about incapacity, mortality, and control. Yet, the absence of a structured plan doesn’t defer those outcomes. It simply removes your voice from them.
At Granite Harbor Advisors, estate planning is approached not just as a matter of wealth transfer, but to preserve autonomy, protect loved ones, and express the values that guide financial decisions. It reflects stewardship—requiring clarity, coordination, and a foundational set of documents.
Rethinking Complexity
There’s a common belief that estate planning is a highly complex endeavor reserved for the ultra-wealthy. While sophisticated strategies may be appropriate in certain cases, every individual, regardless of net worth, can benefit from establishing a baseline of legal clarity and decision-making authority.
These core documents are not focused on tax optimization or asset structuring, though those may be addressed in later planning. At their core, they answer fundamental questions: Who makes decisions if I cannot? What happens to my assets if I pass away without direction? How are my personal values reflected in that process?
Six Foundational Documents
A basic estate plan typically includes six essential documents that work in tandem to provide structure and clarity. For those with complex financial lives or family obligations, these documents offer an important starting point for more advanced strategies.
1. Last Will and Testament
The will directs how assets held in an individual’s name are distributed at death and identifies guardians for minor children. In the absence of a will, state law applies by default—often producing outcomes that may not reflect the individual’s personal intentions.
It is important to note that a will does not allow your estate to avoid probate, nor does it govern assets held in trust or with named beneficiaries, such as retirement accounts or life insurance policies.
2. Revocable Living Trust
A revocable trust can serve as a useful complement to a will, especially for those seeking to streamline administration or maintain privacy. Assets titled in the trust typically pass outside of probate, allowing for more efficient transitions.
This type of trust may also offer a platform for long-term asset management, which can be relevant in situations involving business interests, special needs beneficiaries, or complex family dynamics.
3. Durable Power of Attorney
A durable power of attorney appoints a trusted individual to handle financial matters, even in the event of incapacity. This authority may include paying bills, accessing accounts, managing real estate, or interacting with business partners.
Without this document, family members may need to pursue court approval to take similar actions—often at a time when swift decisions are required.
4. Medical Power of Attorney
This document authorizes someone to make healthcare decisions on an individual’s behalf when that person is unable to do so. It is typically accompanied by discussions about medical preferences, ensuring that choices align with personal values and beliefs.
Formal documentation reduces the risk of conflict or confusion among family members during stressful and emotional periods.
5. Directive to Physicians (Living Will)
A living will outlines preferences regarding life-sustaining treatment in specific medical scenarios, particularly when recovery is unlikely. This document can relieve loved ones of the burden of making such decisions without guidance and ensure that treatment aligns with clearly stated wishes.
6. Declaration of Guardianship
If a minor child is involved, a Declaration of Guardianship is essential to formally name who should assume legal responsibility for the child in the event of the parents’ incapacity or death. This document helps avoid court-appointed decisions that may not align with the family’s intentions and ensures the chosen guardian understands and supports the parents’ values and expectations.
Document Coordination and Alignment
Drafting these documents is only one step. Their effectiveness often depends on how well they align—with each other, with account titling and beneficiary designations, and with broader financial and estate planning strategies.
Granite Harbor Advisors frequently collaborates with clients’ legal and tax professionals to evaluate these documents for consistency and appropriateness. For example, if a trust is established but key assets are not titled accordingly, the benefits of the trust structure may be diminished. Similarly, outdated beneficiary designations can conflict with more recent planning goals.
Periodic review is recommended to account for changes in personal circumstances, asset levels, or legal requirements.
Communicating the Plan
Even the most carefully structured documents can fall short when there is a lack of communication. For families with significant wealth, shared businesses, or philanthropic goals, open conversations play a meaningful role in preventing future misunderstandings.
These discussions may include an explanation of fiduciary roles, a general overview of the estate plan’s intent, or insight into the family’s broader legacy. This type of communication supports transparency and can promote stronger relationships across generations.
Planning with Purpose
Estate planning brings structure to the uncertain and supports informed decision-making during challenging times. These core documents serve as a practical foundation for personal, family, and financial continuity. For those managing substantial assets, operating businesses, or balancing multi-generational priorities, these documents represent the initial framework upon which more complex planning may be built.
At Granite Harbor Advisors, estate planning is viewed as an ongoing process. Regular coordination between clients and their advisors helps ensure that legal documents continue to support their evolving goals and broader financial strategy.