Question 1

I don’t have any assets. Do I need an estate plan?

Accepted Answer

Absolutely. One of the most common mistakes people make is assuming their estate is too small to require any kind of estate planning. The truth is, it doesn’t matter how large or small your net worth is, it is vital to have an estate plan so you can choose today what decisions will be made for you in the future.

Question 2

What is an Estate Plan?

Accepted Answer

An estate plan determines what happens to you if you become incapacitated and what happens at your death. You actually already have an estate plan, whether you know it or not. Deciding whether to have a will or not, how you title your assets, naming beneficiaries (or having no beneficiaries) on life insurance, investment and retirement accounts are all part of your estate plan. The question for you is, do you want to control and understand any or all of this? Your family structure, personal circumstances and goals determine how simple or complex your plan will be. A typical estate plan usually consists of a will, financial power of attorney, health care power of attorney, and advanced directive. Some estate plans also include business structures and trusts. Your estate planning attorney can advise you on how jointly owned assets and beneficiary designated assets can coordinate with the rest of your estate plan.

Question 3

What is Probate?

Accepted Answer

Probate is the process of the Clerk of Court verifying that your will is valid under statutory law and enforceable. If there is a will, it must be filed for probate. Filing a will for probate does not always mean that estate administration will be necessary.

Question 4

What is Estate Administration

Accepted Answer

Estate Administration is the legal process for distributing your property after you die. The process is initiated with the Estates Division of the Clerk of Court in whatever county the person who passed away (the Decedent) was a resident of. The court is tasked with validating the will (if there is one), ensuring that all of the decedent’s property is inventoried, all debts of the estate are paid, and that the remaining assets are distributed according to the terms of the Will or NC Intestacy law.

Question 5

What is Intestacy?

Accepted Answer

If you die without a will, you are said to have died intestate. When this happens, state law determines who will receive your assets. In North Carolina, if you die without a will and you have a spouse and children, it doesn’t all go to your spouse. In West Virginia, if you die without a will and have a blended family, it doesn’t all go to your spouse. This may not be the ideal scenario, particularly if your children are minors.

Question 6

Myth - If I die, everything goes to my spouse so I don’t need a Will

Accepted Answer

Most people don’t start thinking about needing a Will until they are older. However, every adult, no matter how young, needs to have a will, especially if there are children and assets. If you die without a will, the state where you die a resident of will decide what happens with your estate. North Carolina and West Virginia have intestate laws that govern estate division if someone dies without a will. Those laws probably will not reflect your wishes. For example, in North Carolina, if you are married and do not have any children, your parents will receive half of your real estate and personal property. This could leave your spouse in a very difficult financial situation. In West Virginia, if you are married and have children from a previous relationship, your spouse will receive half of your estate and your children will receive the other half of your estate.

Question 7

My child is joint on my bank account so I don’t need a Power of Attorney

Accepted Answer

Making someone a joint owner of your bank account gives them full access to the money in that account. Does this allow them to write checks? Yes. Does this also allow them to withdraw all the money in your account? Yes. Once you make someone a joint owner on your account, you are giving them full ownership of all the money in your account. If after you pass you want that money to be divided between all of your children, there is no obligation for the owner child to do so. Additionally, financial powers of attorney cover so much more than just paying your bills. A financial power of attorney gives the person you designate the ability to handle all of your financial affairs including insurance policies, retirement accounts, government benefits and filing your taxes. Without a power of attorney, the only way for your children to handle your finances for you if you were unable to, would be to seek a court ordered guardianship over you. This is an extremely expensive and traumatizing experience for everyone involved. Choose today who will make decisions for you and handle your affairs in the future when you are unable to. Don’t leave it up to a judge who doesn’t know you or your family to decide.

Question 8

Do I need a Revocable Trust?

Accepted Answer

It depends on your unique situation. Contrary to what Instagram, TikTok and your neighbors are saying, you probably don’t need a trust to protect your assets from the government. There are a lot of myths and half-truths going around that make people think they must have a trust. This is simply not true. There are situations where trusts can be beneficial and necessary. But for most people, there are other ways to structure your estate plan that are more cost effective. This is why it is crucial to meet with an experienced estate planning attorney who can take your goals and wishes and translate them into a comprehensive estate plan that is tailored to your specific needs.

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