Huntersville Estate Planning Attorneys
Huntersville Estate Planning Lawyers - Assisting You In Preparing Your Wills & Estates Plan
Huntersville Estate Planning Lawyers - Assisting You In Preparing Your Wills & Estates Plan
Estate Planning is one of the most important yet neglected aspects of personal finance. When dealing with our own mortality, people tend to procrastinate. It isn't very pleasant to think about death and what will happen to our family and our finances after we pass away. Having a basic estate plan, at the minimum, is essential to ensuring that your family is cared for after you are no longer here and your finances are distributed in the way that you desire. This plays a significant role in reducing stress and frustration for your loved ones in the event of your incapacitation or death.
A comprehensive estate plan has several components. At the most basic level, a will, living will, and power of attorney (financial and healthcare) are recommended. Some people may also require a trust. This depends on your personal wishes, how many assets you have, and how you want them distributed in the event your death or incapacitation. Becoming incapacitated or dying without a will can be costly for your family. It leaves you with no say as to how your assets are distributed and may lead to expensive and stressful litigation for your loved ones. Most of this can be avoided by developing an estate plan and taking simple steps to ensure your family's security.
Last Will and Testament
Your Last Will and Testament is a document that outlines how you want your assets distributed in the event of your death. It may also specify who you want to appoint as a guardian for your children in the event of your death. This document will help ensure that your wishes are carried out after your passing and that your family is provided for.
If you die without a will, also known as dying intestate, you let the state's laws determine how your property is distributed and who will watch over your minor children. This prevents you from selecting your heirs, nominating specific guardians, may require court intervention in regard to your property distribution, and may implicate additional taxes upon your estate. Protect yourself and your family and plan for the future accordingly by having a will.
Last Will and Testament
Your Last Will and Testament is a document that outlines how you want your assets distributed in the event of your death. It may also specify who you want to appoint as a guardian for your children in the event of your death. This document will help ensure that your wishes are carried out after your passing and that your family is provided for.
If you die without a will, also known as dying intestate, you let the state's laws determine how your property is distributed and who will watch over your minor children. This prevents you from selecting your heirs, nominating specific guardians, may require court intervention in regard to your property distribution, and may implicate additional taxes upon your estate. Protect yourself and your family and plan for the future accordingly by having a will.
Living Will / Advanced Directive
If you become incapacitated and are unable to direct your medical care, a living will, also known in North Carolina as an Advanced Directive for a Natural Death, will specify what type of health care and medical treatments you prefer. You may also appoint a guardian in this document. Without having this important document in place, someone else, whether an estranged family member, a doctor, or even a judge, may decide what medical treatments you will receive.
Healthcare Power of Attorney
A Healthcare Power of Attorney works in conjunction with a living will. This is the document that specifies your health care agent, which is the person who will make medical decisions for you in the event of your incapacitation. Your health care agent needs to be someone close to you who you can trust. Most people choose their spouse, partner, relative, or close friend as their health care agent. North Carolina requires that your health care agent be (i) at least 18 years of age, and (ii) not being compensated for providing you health care.
Financial Power of Attorney
The Financial Power of Attorney allows someone to conduct financial transactions on your behalf. This document may be as general or specific as you wish. A general financial power of attorney, for example, is designed to allow another person to conduct ALL financial affairs for you in the event of your incapacitation. A specific financial power of attorney, on the other hand, may limit that person to only conduct something such as a real estate transaction. These documents are extremely important because without them someone may not be able to handle your financial affairs in the event of your incapacitation. The financial power of attorney is also very useful for people traveling overseas for an extended period of time to work or live. It allows someone at home to handle your domestic finances.
Revocable Living Trust
A trust is a legal arrangement where a trustee holds legal title to property for the benefit of the beneficiaries. The primary benefit of a trust is that you're going to save your beneficiaries time and money by avoiding probate. When you die with a will, the will must be submitted to probate, which can be expensive and time-consuming. A trust will help your loved ones avoid this additional delay and expense.
While most people need a will, not everyone needs a trust. Although trusts have their advantages, they can take longer to develop than a will, be more expensive, require more maintenance, and be more difficult to modify. Additionally, a comprehensive estate plan will still require a Pour Over Will to transfer any remaining property into the trust.
Before you decide you need a living trust, it is important to consider whether it is worth it. Typically, trusts are reserved for older people with a considerable amount of wealth. The wealthier you are, the more you can save your beneficiaries by avoiding probate. That being said, North Carolina law makes probate relatively simple and only assesses modest fees. Thus, in North Carolina, there are very few incentives in creating a trust for the purpose of avoiding probate. At Adkins Law, we can help you make the decision on whether a trust is in your best interest.
Asset Protection Planning
In today's world of increased litigation, it is essential for some people to consider a comprehensive asset protection plan. An asset protection plan is a strategy to protect your wealth from potential creditors and those who may try to sue you. It is essentially wealth preservation against unforeseen circumstances. Business owners, property developers, and professionals with a high risk of liability may want to consider implementing an asset protection plan.
An asset protection plan is only effective if it is put into place before you are faced with creditors and other litigants. Scrambling to transfer assets into trusts, LLCs, insurance policies, and other accounts after you are faced with a lawsuit is both unethical and not effective. The best plans discourage lawsuits and promote favorable settlements.
An asset protection plan will usually involve one or more of the following:
- The formation of a corporation or an LLC
- Insurance policies and annuities, which may be held in an irrevocable trust
- Foreign Asset Protection Trusts (FAPT) and Domestic Asset Protection Trusts (DAPT)
- Tenancy by the Entirety and Homestead Exemptions
If you have a considerable amount of assets, an asset protection plan is essential in protecting your wealth and financial future. Contact Adkins Law to discuss your options with an estate planning lawyer to develop an asset protection plan.
Developing an estate plan is essential in securing your future wellbeing and protecting your family. If you are interested in taking steps to create an estate plan, please contact Adkins Law to schedule a consultation with a Huntersville estate planning attorney. One of our Huntersville estate planning lawyers can discuss your circumstances in detail and help you decide what package would best suit your needs.