Hitting pause on your daily routines to focus on the end of your life is by no means an easy endeavor. But just the thought of not being able to take care of your family because you’re incapacitated or gone is bound to make you uneasy. Consider the hardship and stress your loved ones may endure on top of grieving if your estate lands in probate court to be divvied by North Carolina inheritance law.
With that in mind, estate planning can be one of the most important steps you take to safeguard your assets and care for your family. Working with a financial advisory firm, such as Good Life Morehead City, and an estate planning attorney to create an estate plan can provide you with the comfort of knowing your wishes will be carried out as you intend them to be.
To help prepare you for the process, here’s a checklist for estate planning in North Carolina.
What Is Estate Planning?
Estate planning is all about laying out, in writing, just how you want your estate handled in the event that you are unable to make decisions about your health, assets, or business because of illness or death.
Most people think about a will when estate planning is mentioned, but properly planning for your estate involves creating several other documents. While not required by North Carolina law, these can still be legally binding to manage your estate after you’re gone. Depending on your circumstances and goals, estate planning can also play a significant role in safeguarding your financial well-being and family even while you are alive and well.
The process can take a lot of work, but once you have an estate plan in place, it will be easier for you to update periodically or as your life changes, such as through marriage, divorce, childbirth, and other similar events.
Your Checklist for Estate Planning in North Carolina
A solid North Carolina estate planning checklist comprises the following steps:
Inventory Your Assets and Debts
You want to create a comprehensive list of all your assets, debts, and liabilities to avoid forgetting anything during the planning process. You should write down each of the following items (where applicable) and attach a value to them:
- Accounts (checking, savings, retirement, insurance, etc.)
- Real estate property
- Personal assets (jewelry, artwork, collectibles, family heirlooms, etc.)
- Investments, such as stocks and bonds
- Mortgage documents, deeds, titles, and patents
- Vehicles
- Furniture
Having a clear list to consistently refer to can help you stay organized during the estate planning process.
Draft a Will
With your assets, debts, and liabilities laid out in front of you, you can draft your will, which does the following:
- Names an executor of your estate
- Designates the people or organizations to receive your property
- Names a guardian for your children
- Names someone to manage property for your children
Your will can also include detailed instructions regarding your funeral and final resting place.
Create a Living Will
To protect your assets in the event that you fall ill or are otherwise incapacitated, you can outline the medical care you want to receive in advance. You also can give someone you trust healthcare power of attorney to make medical decisions on your behalf.
Name a Financial Agent
Like with healthcare power of attorney, you want to select someone you trust to manage your assets and deal with financial matters. Your financial agent should be someone who will act in the best interests of you and your family. Consider naming successor agents in case someone is unwilling or unable to take up the responsibility.
Determine Wealth Preservation Strategies
A big part of estate planning is minimizing your tax liabilities and passing on your wealth to your family or organizations. You can work with a financial advisor and tax attorney to develop strategies for the following:
- Creating a revocable or irrevocable living trust
- Transferring assets to a spouse, family members, or others
- Giving money
- Buying insurance
- Donating to charities
The team of estate planning professionals you work with can help prepare the legal documents to help you preserve your legacy.
Store Your Documents
Once you finish your initial round of estate planning, it’s important to consider storing your documents in a safe, locked place that is fireproof and waterproof. Let your spouse and those with powers of attorney know where the documents are or provide them copies. Consider avoiding a safety deposit box since it could require a court order to open.
While the estate planning documents created for you aren’t required by law, they must adhere to the laws of North Carolina.
Find a Financial Advisor for Estate Planning
Many people believe estate planning is for wealthy or older people. However, anyone 18 or older with a bank account needs to have a plan for handling your assets if you pass. At Good Life Morehead City, part of our mission is to bring financial knowledge to your life. If you’re in need of some estate planning help, reach out today.