What is an Estate Plan?
An estate plan is simply what you want to happen to your property after your death. There are various types of plans. Your property is not just real estate and bank accounts, but it also includes retirement accounts, vehicles, jewelry, and even minor children. An estate plan must be written down and documented in a very specific and legally compliant way.
In North Carolina, if you don’t make your own plan, the government gives you one. This is called the “Intestate Succession Act” and it was created in 1959. Failure to create your own plan means your estate is controlled and distributed according to North Carolina law. And this law is not updated regularly. Unfortunately, a majority of people do not have their own plan. So, when they die, essentially their estate is governed by a law created more than 60 years ago. And I have never met any one who wanted the outcome this law gives.
In my opinion, everyone needs to make their own plan. An estate plan includes a Last Will and Testament as well as other important legal documents. There are several types of Last Will and Testaments: attested, holographic, nuncupative, living will, and trust. The type that is the best for you depends on your goals and wishes. Most people need an attested Will and possibly a Trust too.
All good plans start with the end goal in mind. We need to discover what is important, what you want to happen, and how you want your estate administered after your death. Minimally, every adult needs an “attested” Last Will and Testament. This ensures your selected beneficiaries receive your property after your death.
A great estate plan considers more than just death. Many people experience diminished capacity and/or incapacity (accident or illness) before death. Therefore, a great estate plan includes planning for your lack of capacity and creating strong documents to ensure you have the right people in place with the legal authority to take care of you. Every adult needs Powers of Attorney, Health Care documents, and Living Wills.
In my experience, most people know who they want to receive their estate. BUT, most people do not know how their estate gets distributed or transferred. This is one of the many ways an experienced, licensed estate planning attorney can help. We show and teach you how all of your property passes after your death. And there are several ways it can pass. Some are quick and easy, while others may be long and expensive. Some of the ways are “by operation of law”, through “Probate”, or via a “Trust”.
North Carolina law gives you the opportunity to make your own plan so that your estate not only goes to who you want but also goes how you want. However, if you fail to plan, the Intestate Succession Act has decided who your estate beneficiaries’ are. Additionally, if you become incapacitated, a judge (usually an assistant/deputy clerk of court) decides who they believe should be over your property during your lifetime. And my guess is neither the law nor the judge’s decision is really what you want.
Make your own plan so you are not left with the government’s plan. Consult an experienced, licensed estate planning attorney so you can learn how it all works and what you need to know. You can make sure your home goes to who you want, in-laws don’t get in the way, your priceless heirlooms are protected, and your minor children are cared for by people you know and trust.
If you would like to learn more about how Palmer Estate Planning can help you have a unique, customized estate plan, feel free to contact us today.