Many people mistakenly think that estate planning only involves the writing of a will. Estate planning, however, can also involve financial, tax, medical and business planning. A will is part of the planning process, but you will need other documents as well to fully address your estate planning needs.
We can help you manage all aspects of estate planning. We prefer to call it 'Estate Preservation' because without proper planning, your estate could cause a burden on those left behind and lose tremendous value.
Even if you have an estate plan in place, we suggest an annual review. We can help you with that review.
Proper estate planning can eliminate or reduce these problems:
-
Financial Burdens
Estate Settlement Costs
Probate Fees - These are generally paid to the executor of the estate and the attorney
who assists with the probate.
Death Taxes - Estates that exceed certain amounts may be subject to both state and
federal death taxes.
Estate Assets
Liquidity - There are not enough liquid (cash or of similar type) assets to pay estate
settlement costs.
Cash Flow - There is not enough income to care for loved ones left behind (spouse,
minor children, or other dependents).
-
Transfer of Assets
Estate assets may be subject to probate delays and expense.
Assets transferred to minors may be in cumbersome guardianship accounts until they
attain age 18 (or 21 in some states) and are then distributed outright to the children.
Additional death taxes may be paid because there was no pre-death planning.
-
Care of Minors
Guardians: Parents can nominate a guardian for their minor children in a will.
-
Asset Management: If the wrong persons are chose to manage the assets left for the minors, the assets may be lost or unnecessarily reduced.
-
Medical Decisions
Modern medicine can now keep someone 'alive' in situation that formerly would have resulted in death. Those who do not wish to have their lives artificially prolonged by such techniques must plan ahead and put his/her wishes in writing.
-
Living Will: Also know as a 'Directive to Physicians', this document provides guidance as to the type of medical treatment to be provided or withheld and the general circumstances under which the directive applies.
-
Durable Power of Attorney for Health Care: Many states have laws allowing a person to appoint someone to make health care decisions for him/her if he/she becomes unable to do so under his/her own power.
-
Legal Documents
These items are only available in North Carolina and all items are prepared by attorneys that are in our network (this is what allows us to offer these services at these prices). We plan to have these services available to other states as they are approved. Please see our North Carolina pricing schedule.
-
Will
A Will is the cornerstone of most estate plans. With a properly drafted and executed Will, you determine who will receive what you leave behind when you die. You also appoint the person who will settle your affairs, and perhaps most important, you appoint the people of your choosing to raise your minor children. Your Will can save your loved ones unnecessary bonding and legal expenses. A Will does not, however, keep your estate out of probate.
-
Trusts
Trusts come in a variety of forms to accomplish different things. Over the last decade, Trusts have become very popular among people from all walks of life as a means of avoiding probate, thereby avoiding all probate costs, eliminating time delays and maintaining privacy. Married couples can potentially save huge amounts of money in estate taxes with a properly written Trust. Families can use a specialized Trust to pass an inheritance to a special needs family member without jeopardizing any social benefits the special needs person is receiving or might become eligible for in the future.
-
Powers of Attorney
With a Power of Attorney, you appoint someone who can act on your behalf for financial matters if you become incapacitated, or for some other reason, cannot act for yourself. By creating a Power of Attorney while you are of sound mind, the expense and inconvenience of dealing with the courts can be avoided if the need arises.
-
Healthcare Directives
With Healthcare Directives, such as Living Wills and Healthcare Powers of Attorney, you make your end of life wishes known, and you appoint someone to make healthcare decisions for you if you cannot make those decisions for yourself. You can make your declaration that, in the event that you are terminally ill, you don't want prolonged extraordinary life support. You can choose, in advance, the types of procedures that you want and those that you do not want. By making these decisions in advance, you relieve your loved ones of the burden of making those decisions for you.
-
Documents Outside the Legal Frame Work
Many of the documents involved in an estate plan are legal in nature, prepared by an attorney. However, not all documents involved in an estate plan are legal ones.
-
Letter of Instruction: an informal document that can include information such as your wishes regarding disposition of your remains, contact information for key advisors and family members, location of important documents, the description and location of of assets, or notes on family history. It is used to provide, in a private manner, direction, and guidance to your family or executor in the settling and administration of your estate.
-
Ethical Will: While a legal will or trust are used to distribute assets, an 'ethical will' serves to transfer values and beliefs. It is very personal expression of the writer's life and values as well as the people, events, and experiences that influenced that life. In a very real sense, an ethical will is a spiritual legacy to future generations.
Click here if you live in North Carolina and do not have a will, this is what could happen.