3 components a basic estate plan should contain

On Behalf of | Apr 17, 2023 | Estate Planning and Administration |

Contrary to popular belief, a North Carolina estate plan does not have to take a lot of time to make or be especially complex to be effective. Instead, many modern estate plans contain just three main components, and these three components go a long way in terms of helping ensure your wishes for the future come to fruition.

While you always have the option of enhancing and supplementing your estate plan at a later date, Bankrate advises that you include the following three elements in a simple estate plan.

1. A will

A will is the foundation of most estate plans. This document lets you dictate where you want your belongings to go after your death. Many people also appoint guardians for their minor children when drafting their wills.

2. A power of attorney

A durable power of attorney form lets you designate someone you trust to make financial and similar decisions on your behalf if you become unable to make such decisions yourself. The “durable” part means the person you give power of attorney retains this power if you suffer incapacitation unless you dictate otherwise.

3. Advance directives

North Carolina also recognizes several types of advance directives, or legal documents that let you outline your preferences with regard to your future medical treatment and care. Types of advance directives recognized in North Carolina include living wills and health care powers of attorney, to name a few.

Having these three documents in your estate plan helps ensure that your medical, financial and personal wishes come to be, even if you become unable to voice them yourself.