Estate planning helps you decide what happens to your things after you pass away or if you can’t make decisions for yourself. Many people put this off, but it’s a smart way to help your loved ones avoid stress later. Whether you’re just getting started or updating your plan, this guide will walk you through what you need to know in North Carolina.
Why Estate Planning Matters
Planning ahead helps make sure your wishes are followed. It can also keep your family from having to guess about your medical care or finances. Even though it’s uncomfortable to think about, getting these decisions down in writing can make life easier for those around you.
Did you know that about 68% of Americans don’t have a will? That’s a lot of families left with hard choices and no clear plan. Having an estate plan is one way to avoid that.
Step 1: Choose a Health Care Agent
If you get sick or injured and can’t speak for yourself, a health care agent can make medical decisions for you. This person is someone you trust, like a family member or close friend.
You can write down your medical wishes in a form called an advance directive. It tells doctors and hospitals how you want to be cared for, and your health care agent makes sure those wishes are followed.
Step 2: Name a Financial Power of Attorney
Just like you pick someone to handle your medical care, you can also choose someone to take care of your money and bills. This is called a durable power of attorney.
If you’re ever unable to manage your finances, this person can pay your bills, transfer money, and even sell property if needed. Without this, your family might have to go to court just to get permission to help.
Step 3: Make a List of Your Assets
Before you plan who gets what, it’s helpful to know what you have. Make a list of your assets, including:
- Bank accounts
- Real estate
- Vehicles
- Life insurance policies
- Retirement accounts
- Personal items (like jewelry or family heirlooms)
Don’t forget to list your debts too. This will help your loved ones when it’s time to handle your estate.
Step 4: Decide Who Gets What
Think about who should get your property after you pass away. These people or groups are called beneficiaries.
You can choose anyone—spouses, children, friends, or even charities. Be as clear as possible so there’s no confusion later. If you don’t write this down in a will or trust, the court will decide who gets your assets based on North Carolina law.
Also, check your bank accounts and insurance policies. Many of these allow you to name a beneficiary directly. These named people will get the money, no matter what your will says.
Step 5: Create a Will or Trust
A will is a legal document that explains who gets your stuff and who will take care of any minor children. If you die without a will, the state decides what happens to your things.
A trust can also be used to manage your assets. It’s helpful if you want to avoid probate or set rules about when and how your assets are passed on. For example, you can choose to give money to your children when they reach a certain age.
Some people need only a will, while others may benefit from a trust. It depends on your situation.
Step 6: Store Your Documents in a Safe Place
Once your plan is complete, put all your documents in a safe but easy-to-access spot. Let your health care agent, power of attorney, or family members know where everything is kept.
These documents might include:
- Your will or trust
- Advance directive
- Power of attorney forms
- List of assets and debts
- Insurance and account information
Keeping everything in one place saves time and stress when it matters most.
Step 7: Review and Update Your Plan
Life changes, and your estate plan should change with it. Review your documents every few years or after big events like marriage, divorce, having children, or buying a house.
Also, make sure your named agents and beneficiaries are still the people you trust and want to include.
Get Legal Help
Estate planning might feel overwhelming, but taking it one step at a time makes it easier. You’re making a smart move by preparing now and making your wishes clear. Whether you’re setting up a simple will or need help with more complex planning, it’s worth getting your questions answered and your plan in place.
If you’re ready to get started or need help reviewing your current plan, call (910) 777-5734 to talk with an estate planning attorney who can guide you through the next steps. We’re here to help you put a plan together that fits your life and your goals.