United States
Hong KongThe four documents every client needs
A will directs probate assets and names guardians. A durable power of attorney appoints someone for financial decisions during incapacity. A healthcare proxy appoints someone for medical decisions, and an advance directive states treatment wishes.
Four documents, and the two most people think of last are the two most likely to be needed.
The will
Directs the distribution of probate assets, names an executor, and - for anyone with minor children - names a guardian.
The guardian nomination is frequently the most important provision in the document and it applies to a fraction of clients. Without it, a court decides.
A will does not control assets passing by titling or beneficiary designation, and does not avoid probate. Both are common misconceptions.
The durable power of attorney
Appoints an agent to act on financial matters. Durable means it survives the principal's incapacity, which is the entire point - a non-durable power ends exactly when it becomes useful.
A springing power takes effect only on incapacity, which sounds attractive and creates a practical problem: someone must certify the incapacity, and institutions can be slow to accept it.
A client who becomes incapacitated without a durable power of attorney needs a conservatorship or guardianship - public, slow, expensive, and decided by a judge who does not know the family. That is what the document prevents.
The healthcare proxy
Appoints someone to make medical decisions when the client cannot. Also called a healthcare power of attorney or a durable power of attorney for healthcare.
Separate from the financial power, and frequently a different person. The best financial agent is not necessarily the person you want deciding about treatment.
The advance directive
States the client's wishes about treatment - life support, artificial nutrition, resuscitation. Also called a living will.
It guides the healthcare agent rather than replacing them, because no document anticipates every situation. Having both is better than either alone.
What else belongs alongside them
- Beneficiary designations, reviewed and current.
- A HIPAA authorization, so the agent can actually obtain medical information.
- A letter of instruction - not legally binding, and genuinely useful.
- A list of accounts, advisers and digital assets with access arrangements.
- A revocable trust, where probate avoidance or incapacity management justifies it.
The digital asset point is increasingly practical. An agent who cannot access an email account frequently cannot access anything else either.
Dollar limits here are indexed annually and the transfer tax exclusion was changed by the 2025 reconciliation act. Confirm the current figure before relying on it.
Common questions
What documents does every client need?
A will, a durable power of attorney for financial matters, a healthcare proxy, and an advance directive. Beneficiary designations and a HIPAA authorization belong alongside them.
What does durable mean?
That the power survives the principal's incapacity. A non-durable power ends precisely when it becomes useful, which is why durability is the entire point.
What happens without a durable power of attorney?
A conservatorship or guardianship, which is public, slow, expensive and decided by a judge who does not know the family.
Should the same person hold both powers?
Not necessarily. The best financial agent is not always the person you want making treatment decisions, and the two documents can name different people.
Does a will avoid probate?
No. A will directs how probate assets are distributed; it does not avoid the process, and it does not control assets passing by titling or beneficiary designation.