Which document is essential in determining how assets are distributed after death?

The last will and testament is critical for determining how assets are distributed after death because it outlines the deceased individual's wishes regarding the distribution of their property and assets. This legal document specifies who will inherit the deceased's belongings and can also designate guardians for minor children, if applicable. By formally expressing these intentions, the will ensures that the distribution process follows the decedent's specific wishes and can help minimize potential disputes among surviving family members or beneficiaries.

Living trusts, while they can also direct asset distribution, serve a different primary function, such as avoiding probate and managing assets during one's lifetime. Powers of attorney and health care proxies pertain more to decision-making or financial management during a person's lifetime, rather than asset distribution after death. Therefore, when it comes to distributing assets posthumously, the last will and testament is the essential document.