By John F. Davenport, Esq. | Davenport & Associates, Norwalk, CT | April 20, 2026
According to the 2026 Trust & Will Estate Planning Report, 56 percent of American adults have no estate planning documents whatsoever. No will. No trust. No power of attorney. No healthcare proxy. Nothing.
That number has barely moved in years. In 2025, it was 55 percent. Despite rising awareness, easier access to online tools, and one of the largest changes in estate tax law in a generation, more than half of American adults still have no legal plan for what happens to their family, their assets, or their medical care if something goes wrong.
Even among parents, the number is alarming: 50 percent have no estate planning documents at all. That includes documents that would name a legal guardian for their minor children.
As a licensed attorney in New York and Connecticut and a financial advisor with over 30 years of experience, I can tell you that the biggest risk is not having a bad plan. It is having no plan at all. When you have no documents in place, the state decides who gets your assets, who raises your children, who makes your medical decisions, and who manages your finances if you cannot.
This post explains the five documents every family needs, what each one does, and what happens without them.
Before we get into the documents, it helps to understand why the number is so high.
The Trust & Will report identifies the top reasons: people think they do not have enough assets to need a plan, they find the process intimidating or confusing, they do not know where to start, or they simply procrastinate because it forces them to think about uncomfortable topics.
The reality is that estate planning is not just for wealthy families. If you have a bank account, a house, a car, a child, or a person you would want making medical decisions for you, you need at least some of these documents.
A will is the most basic estate planning document. It tells the court who gets your assets when you die, who should serve as the executor (the person who carries out your wishes), and if you have minor children, who should be their legal guardian.
Without a will, your state’s intestacy laws decide everything. In Connecticut and New York, that typically means your assets go to your spouse and children in a formula you may not have chosen. If you are unmarried, your assets go to your closest blood relatives, even if that is not what you would want. If you have minor children and both parents die without naming a guardian, the court appoints one.
A will does go through probate, which is the court-supervised process of distributing your assets. Depending on the state, probate can take months to over a year and can be expensive. That is one reason many families also create a revocable living trust.
A revocable living trust is a legal entity that holds your assets during your lifetime and distributes them after your death according to your instructions, without going through probate. You remain in full control of everything while you are alive. You can change, amend, or revoke the trust at any time.
The primary advantages of a trust over a will are probate avoidance (your family does not have to go through the court process), privacy (trusts are not public record, while wills filed in probate court are), and incapacity planning (if you become unable to manage your affairs, the successor trustee you named steps in immediately, without court involvement).
A critical point many families miss: a trust only works if it is funded. That means your assets, including your home, bank accounts, and investment accounts, must be retitled in the name of the trust. An unfunded trust is one of the most common and costly estate planning mistakes I see. The trust document may be perfect, but if your assets are not in it, they will still go through probate.
| The Trust Funding Trap I see this at least once a month: a family has a beautifully drafted trust, but the house is still in the individual’s name, the bank accounts were never retitled, and the investment accounts still list the individual as the owner. When that person dies, the trust is empty and the family ends up in probate court anyway. If you have a trust, verify that it is fully funded. If you are not sure, bring your trust and a list of your accounts to your attorney for a review. |
| Not Sure If Your Estate Plan Is Complete? John F. Davenport, Esq. and Davenport & Associates help CT and NY families locally, as well as clients all across the country, build complete estate plans that protect their families and their assets. Click below to schedule your free 30-minute consultation. -> Schedule a Free Estate Plan Review -> jdavenportassociates.com/contact-us |
A durable power of attorney (POA) is a legal document that authorizes a person you choose (your agent) to manage your financial and legal affairs on your behalf. This includes paying bills, managing investments, handling real estate transactions, filing taxes, and communicating with financial institutions.
The word durable is important. A standard power of attorney ends if you become incapacitated. A durable power of attorney remains in effect even after you lose the ability to make decisions, which is exactly when you need it most.
Without a durable power of attorney, your family may need to petition the court for a conservatorship or guardianship just to access your bank accounts or pay your mortgage. That process is expensive, time-consuming, and public.
In Connecticut, the power of attorney must follow specific statutory requirements. In New York, the rules are even more detailed, including a requirement that the agent sign the document as well. Having an attorney draft this document ensures it will actually be accepted by banks and financial institutions when your family needs it.
A healthcare proxy (called a healthcare agent in some states) is a document that names a trusted person to make medical decisions on your behalf if you are unable to communicate or make those decisions yourself. This includes decisions about treatment, surgery, medication, and end-of-life care.
Without a healthcare proxy, your family would need to petition the court for guardianship just to talk to your doctors about your care. Even your spouse may face obstacles depending on state law and hospital policy.
In New York, the healthcare proxy form is a separate legal document. In Connecticut, healthcare instructions, the appointment of a healthcare representative, and the designation of a conservator are combined into a single Consolidated Health Care Instructions & Advance Directives document.
The most important step after creating a healthcare proxy is having a conversation with your named agent about your wishes. The document gives them authority. The conversation gives them guidance.
A living will is a written statement of your wishes regarding medical treatment if you become terminally ill or permanently unconscious and cannot communicate. It covers decisions like whether you want life-sustaining treatment, artificial nutrition and hydration, mechanical ventilation, and other interventions.
A living will works alongside your healthcare proxy. The proxy names who makes decisions. The living will tells them what you want. Together, they ensure your medical care reflects your actual preferences, not a guess by a family member under enormous stress.
Many families do not realize that without both documents, end-of-life decisions can become a source of conflict among family members. A clear living will removes that burden.
While not a standalone document, beneficiary designations on retirement accounts (IRAs, 401(k)s), life insurance policies, and certain bank accounts function as their own mini-estate plan. These designations override your will and your trust. If your IRA beneficiary form names your ex-spouse and your will names your current spouse, the ex-spouse gets the IRA.
Reviewing your beneficiary designations should be part of every estate plan review. This is especially important after major life events: marriage, divorce, the birth of a child, or the death of a named beneficiary.
Even if you have all five documents, they need to be reviewed periodically. The Trust & Will report found that 14 percent of people with estate plans have never updated them, and 13 percent review them only once per decade or less.
You should review your estate plan if any of the following apply: you have not reviewed it in the last five years, you got married or divorced, you had a child or grandchild, you moved to a different state, a named trustee, agent, or guardian is no longer the right choice, your financial situation has changed significantly, or the law has changed (and it changed substantially in 2025 with the OBBBA).
These are the questions I hear most from families starting or reviewing their estate plan.
| Q: Do I need a trust if I already have a will? Not necessarily, but for most families, a trust offers significant advantages: probate avoidance, privacy, and incapacity planning. A will goes through probate court. A properly funded trust does not. The best approach depends on the complexity of your assets and your family situation. |
| Q: What is the difference between a power of attorney and a healthcare proxy? A power of attorney handles financial and legal decisions (bills, accounts, investments, taxes). A healthcare proxy handles medical decisions. They are two separate documents that serve two separate purposes. Most families should have both, and they do not have to name the same person for each role. |
| Q: Does a power of attorney expire when I die? Yes. A power of attorney is only effective during your lifetime. When you die, your executor (named in your will) or your successor trustee (named in your trust) takes over. The power of attorney has no authority after death. |
| Q: What happens if I have no estate plan at all? The state decides everything. Your assets are distributed according to intestacy laws, which may not match your wishes. The court appoints a guardian for your minor children. If you become incapacitated, your family must petition the court for the right to manage your finances or make medical decisions. This process is slow, expensive, and public. |
| Q: How much does estate planning cost? Costs vary depending on the complexity of your situation and your state. A basic will can cost a few hundred dollars. A comprehensive plan with a trust, power of attorney, healthcare proxy, and living will typically runs between $1,500 and $5,000 for most families. The cost of not having a plan, including probate fees, court costs, family conflict, and unnecessary taxes, is almost always higher. |
| Q: Can I do my estate plan online? You can, but there are risks. Online tools work for very simple situations. But they cannot advise you on state-specific requirements, trust funding, tax planning, beneficiary coordination, or the interaction between your estate plan and your financial plan. For families with any complexity, an attorney who understands your state’s laws is the better investment. |
Estate planning is not just for wealthy families. It is for anyone who wants to control what happens to their assets, their children, and their medical care. The five documents outlined in this post form the foundation of that control: a will, a revocable living trust, a durable power of attorney, a healthcare proxy, and a living will.
The 2026 data is clear: more than half of American adults have none of these documents. Even among parents, half have no plan at all. If you are in that group, the single most important financial step you can take this year is getting your plan in place. It does not have to be complicated. It just has to exist.
And if you already have a plan but have not reviewed it in the last five years, now is the time. Tax laws have changed, exemptions have shifted, and the documents you signed a decade ago may no longer reflect your wishes or the current legal landscape.
| Questions About Your Estate Plan or Ready to Get Started? John F. Davenport, Esq. and the team at Davenport & Associates help CT and NY families locally, as well as clients all across the country, create and update estate plans that reflect today’s tax law and protect what matters most. Click below to schedule your free 30-minute consultation. -> Schedule Your Free Consultation -> jdavenportassociates.com/contact-us |
| References & Sources Trust & Will 2026 Estate Planning Report (trustandwill.com) AARP: What Estate Planning Documents Do You Need? (aarp.org) McDermott Will & Emery: Essential Estate Planning Documents in 2026 (mcdermottlaw.com) New York Department of Taxation and Finance: Estate Tax (tax.ny.gov) IRS: Estate and Gift Taxes (irs.gov) |
| About the Author | John F. Davenport, Esq. John F. Davenport holds a law degree from Pace University and an MBA in finance from Fordham University, and his business degree from the University of Notre Dame. He is a licensed attorney in New York and Connecticut, and financial advisor. He founded Davenport & Associates in 1997 and has spent more than 30 years helping CT and NY families build retirement income plans and estate strategies that work together — not against each other. As both a licensed attorney and financial advisor, John reviews estate plans from both the legal and financial perspective in a single conversation — a combination most families would otherwise need two separate professionals to replicate. Davenport & Associates | 800 Connecticut Avenue, Suite E401, Norwalk, CT 06854 Phone: (203) 853-6300 | jdavenportassociates.com |