by E. Drew Nelson, Attorney at Law
Planning for the future isn’t always easy, but it’s one of the most meaningful things you can do for your loved ones. Every adult age 18+ should have at least a basic estate plan. Whether you’re just starting your estate planning journey or updating existing documents, having a centralized estate organizer with your important documents and information about the assets of your estate can help you and your family stay prepared — especially in times of uncertainty.
Here’s a quick summary of the basic estate planning documents and a step-by-step guide to building your own estate organizer for North Carolina residents.
What is a Basic Estate Plan?
At a minimum, you should have a will, durable and healthcare powers of attorney, and advance directives/living will.
The Last Will and Testament
A last will and testament is the foundation of your estate plan. It outlines how your assets will be distributed when you pass and who will be responsible for settling your estate (the executor).
It is important to understand also that not all your property or assets pass via your will. You must also consider whether property passes by deed, beneficiary designation, or joint assets held with rights of survivorship.
If you haven’t created a will yet, we strongly recommend doing so with the help of an attorney to ensure it meets North Carolina’s legal requirements and fully reflects your wishes.
Do You Own Property? Talk to an Attorney About a Trust
If you own a home or other valuable assets, a revocable living trust can be a powerful tool. A trust can allow your estate to avoid probate, save probate fees, keep matters private, and help ensure your property is passed on smoothly to your family.
An attorney can help determine whether a trust makes sense for your specific situation, how to transfer property titles into the trust, and who should serve as trustee and beneficiaries.
Powers of Attorney and Advance Directives
North Carolina residents can complete several documents to plan for temporary or permanent incapacity or illness. These power of attorney documents will help your loved ones manage your affairs in the event you are unable to do those things yourself.
- Health Care Power of Attorney (HCPOA):
This names someone you trust to make medical decisions on your behalf if you can’t make or communicate those decisions for yourself. - Advance Directive for a Natural Death (“Living Will”):
This document lets you express your wishes regarding life-prolonging measures in the event of terminal illness or permanent unconsciousness. - Durable Power of Attorney (POA):
A durable power of attorney allows someone to manage your finances and legal matters if you’re unable to do so. This can include paying bills, managing real estate or investments, and filing taxes. A properly executed POA ensures that someone you trust is authorized to act on your behalf when needed.
Estate Planning Considerations for Minor Children
Special considerations should be paid to your estate plan if you have minor children or have children who will or recently turned 18.
If we use the example of a teen celebrating their 18th birthday, upon turning 18 that teen legally becomes an adult. The parents no longer have the right to make decisions on behalf of their child or even gain access to private medical and financial information. If the teen is injured in an accident and there is no healthcare power of attorney granting rights to the parents to direct the teen’s care, it may be necessary to have the court appoint a guardian – and it may not be a parent!
It can be very helpful for a child going off to college to have these power of attorney documents in place so a parent can help them if needed.
If you have minor children, your will is also the document where you may designate a guardian for the minor children in the event you are gone.
It is advisable that a minor should not directly inherit property, so your estate plan should include creating, at a minimum, a testamentary trust for the minor and appointing a trustee to oversee the funds till the minor reaches a certain age. Many people favor providing guidelines for access to a young adult’s inheritance to help ensure they have matured enough to properly manage the inheritance and don’t blow it all on fast cars and other fun things.
Create Your Estate Organizer
Once you’ve completed the key documents, keep them in a safe place, such as a fireproof safe at home, with your attorney, or shared with your spouse or adult children. It’s also a good idea to back them up digitally with proper password protection.
Create a list of all accounts, passwords, policies, and contacts your family may need access to. Don’t forget to include access information for digital accounts like email, social media, online banking, or cloud storage. North Carolina law allows you to name someone to manage digital assets under the Revised Uniform Fiduciary Access to Digital Assets Act.
Don’t Fall for Common Estate Planning Myths
Many people delay estate planning because of common misconceptions. For example, some assume they’re too young to need a will or POA, or that their spouse will automatically inherit everything.
Others forget to update their documents after major life events like marriage, divorce, the birth of a child, or significant changes in health. It’s also easy to overlook the importance of naming backup fiduciaries in case your first choice is unavailable.
Avoiding these pitfalls can save your loved ones time, money, and confusion when it matters most.
When to Call an Attorney
Estate planning isn’t one-size-fits-all. It’s best to work with an attorney if:
- You own a home or business
- You have minor children
- You’re concerned about taxes or probate
- You want to set up a trust
- You’re part of a blended family or have unique inheritance concerns
At Brinkley Walser Stoner, we’re here to guide you through every step of the process and ensure your documents are tailored to North Carolina law.
Need Help with Your Estate Plans?
Contact us today to schedule a consultation and start protecting what matters most.