The Financial Documents Every Family Should Have (But Most Don’t)
MIke Murphy
July, 2026
Most families spend more time planning a vacation than they do organizing their financial affairs. It’s understandable, these conversations can feel complicated, uncomfortable, or simply easy to put off. But the cost of procrastination can be enormous. When a health crisis, accident, or unexpected death occurs without the right documents in place, families are left scrambling.
The good news is that having the estate planning documents every family needs is simpler than most people think. Here is a breakdown of the most important financial and legal documents every household should have.
1. A Last Will and Testament
A will is the foundational document of any estate plan, yet roughly 67% of Americans don’t have one. A will specifies how your assets should be distributed after your death and, critically, who should care for your minor children. Even a straightforward will drafted with the help of an attorney provides enormous peace of mind. It removes ambiguity, reduces family conflict, and ensures your legacy is handled on your terms.
2. A Durable Financial Power of Attorney
A durable financial power of attorney (POA) designates someone — your “agent” — to manage your finances if you become incapacitated. This includes paying bills, managing investments, filing taxes, and handling real estate transactions. Without this document, your family may need to go through a costly and time-consuming court process to access your bank account. A durable POA remains valid even after the grantor becomes mentally incapacitated, which is precisely when it matters most.
3. A Healthcare Power of Attorney and Living Will
A healthcare power of attorney designates someone to make medical decisions on your behalf if you cannot speak for yourself. A living will (also called an advance directive) documents your wishes about life-sustaining treatment, artificial nutrition, resuscitation, and other end-of-life medical interventions. Together, these documents are among the most compassionate gifts you can give your family.
4. Updated Beneficiary Designations
Many people don’t realize that beneficiary designations on life insurance policies, retirement accounts (401(k), IRA), and bank accounts override whatever their will says. If you named an ex-spouse as your beneficiary a decade ago and never updated it, that ex-spouse may receive the funds regardless of your current wishes or your new spouse’s needs. Review your beneficiary designations every two to three years, and any time you experience a major life event — a marriage, divorce, birth, or death in the family. This is one of the most commonly overlooked documents, and the consequences of neglect can be irreversible.
5. A Life Insurance Policy
Life insurance is one of the most powerful tools a family has for financial protection. It ensures that if a primary breadwinner dies, the surviving family members can maintain their standard of living, pay off a mortgage, fund college tuition, and cover day-to-day expenses without financial ruin. Yet roughly 40% of Americans have no life insurance at all, and many who do are significantly underinsured. A thorough review of your coverage — factoring in your income, debts, dependents, and long-term goals — is essential to making sure your policy actually does the job it’s supposed to do.
6. A Revocable Living Trust (If Appropriate)
A revocable living trust is not just for the ultra-wealthy. For many families, a trust offers significant advantages over a will alone: assets held in a trust avoid the often lengthy and expensive probate process, remain private (unlike wills, which become public record), and can be distributed to heirs quickly and efficiently.
7. A HIPAA Authorization Form
The Health Insurance Portability and Accountability Act (HIPAA) restricts who medical providers can share your health information with — even immediate family members. This is a simple, often one-page document that is routinely overlooked in financial planning conversations. It should be updated any time you want to add or remove someone from your authorized contacts list.
8. An Organized Summary of Key Financial Information
This one isn’t a legal document, but it may be the most immediately practical item on this list. Every family should maintain a secure, organized record of:
- Bank and investment account numbers and institutions
- Insurance policy numbers and carrier contact information
- Location of original will, trust documents, and deeds
- Login credentials for key online accounts (stored securely)
- Contact information for your attorney, financial advisor, and accountant
Your family should know where this information is kept and how to access it in an emergency. A fireproof safe, a secure digital document vault, or both are sensible choices.
The Cost of Waiting
No one wants to think about incapacity, death, or financial hardship. But the families who have experienced these crises without the right documents in place know firsthand how much harder it makes an already painful situation. The documents listed here are not complicated to obtain — they simply require taking the time to act.
If your family does not have all of the estate planning documents every family needs, now is the time to change that. Start with one document if that’s what it takes, and build from there. The most important step is the first one.
Ready to Protect Your Family's Financial Future?
Taking the first step toward financial security doesn’t have to be overwhelming. Nelson Murphy Insurance and Investments is here to help Omaha families build a financial safety net, from reviewing your existing documents to working with the right partners to fill the gaps. Our advisors specialize in helping families protect what matters most through personalized insurance and investment strategies. Contact Nelson Murphy Insurance and Investments today to schedule a complimentary consultation, and let’s make sure your family is never caught without the estate planning documents every family needs. Don’t wait for a crisis to find out what’s missing.
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