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What documents does one need for their estate plan?

On Behalf of | Aug 17, 2021 | Estate Planning |

Throughout life people in North Carolina need to obtain various plans and sign many documents for various aspects of their lives. They may sign loan documents for a house or other property. They may have health insurance, homeowners’ insurance, life insurance and other types of insurance. These are all documents that people sign and obtain for events that may happen in the future. However, there is one part of life that is guaranteed that people should plan for and that is their passing.

It is not a part of life that people really like to think about, but it is inevitable. People need to plan for it like they plan for other future events. People should have an estate plan. This type of planning can go beyond just planning for where people’s possessions will go after they pass away. It can also include documents stating their wishes for times when they are still living, but incapacitated and unable to make decisions on their own.

Basic estate planning documents

There are different documents for each part of the estate plan. The three basic and main documents people will need are a will, a health care power of attorney and a financial power of attorney. The will is the document which states who will receive people’s property after they pass away. The will controls everything after people die. A health care power of attorney or living will states people’s wishes for their health care while they are still living, but incapacitated. The financial power of attorney allows people to grant others the authority to make financial transactions for them while they are still living.

Estate plans are personal and allow people in North Carolina to dictate specifically what they want to occur with their property and their health when they are no longer able to make those decisions on their own. Without these documents people’s health care decisions and where their property will go is determined by others or state statues and people lose control over the process. Estate planning is important to avoid this and consulting with experienced attorneys could be beneficial.