A simple estate plan needs these 3 components

On Behalf of | Aug 4, 2022 | Estate Planning

Having a North Carolina estate plan helps ensure that your wishes come to be if you become unable to vocalize them, and it may, too, mean your loved ones have an easier go of things after your passing. Putting together an effective estate plan does not need to cost a hefty sum or take a significant amount of time. Instead, many people create basic, effective estate plans that contain only three main components.

According to Bankrate, having the following in your estate plan offers advantages, not only for you but for your loved ones.

A will

If you do nothing else during estate planning, draft a will. You may use the will to address who is going to inherit what assets once you die. If you have a minor child or minor children, you may also use your will to name a guardian who would care for them in your absence.

An advance directive

Advance health care directives include living wills and health care powers of attorney, among other types. Each works a bit differently, but they all let you spell out what you want to happen to you, or who you want to decide what happens to you if you suffer incapacitation.

A financial power of attorney

A person you give financial power of attorney typically has the ability to access your bank accounts and manage your financial affairs. This helps ensure your loved ones do not wind up facing unpaid debts or other unanticipated expenses.

While having an estate plan helps you maintain control over important personal affairs, it may also shorten the time involved in settling your estate.