What key documents should be part of a thorough estate plan?

A thorough estate plan is essential for individuals to ensure that their assets are distributed according to their wishes after they pass away, and it also provides guidance for health care decisions if they become incapacitated. The correct components of an estate plan include a will, which outlines how a person's assets should be distributed, a power of attorney, which designates someone to make financial decisions on behalf of the person, a health care proxy, which appoints someone to make medical decisions, and trust documents, which can help manage the distribution of assets in a more controlled manner, potentially avoiding probate.

These documents work together to provide a comprehensive legal framework that not only facilitates the distribution of assets but also addresses issues related to health care and financial management during a person’s lifetime or after their death. This holistic approach helps individuals and families navigate complex situations that may arise in estate management.

In contrast, the other choices include documents that are not essential to a typical estate plan. For example, a business plan and tax returns might be important for financial planning but do not specifically contribute to distributing personal assets or addressing health care decisions. Similarly, investment strategies and banking information, while crucial for managing finances, do not inherently relate to estate planning. Lastly, a marriage certificate and employment history