Securing Your Legacy
While everybody has jumped on the DIY bandwagon, there are some things you should definitely leave to the professionals—and estate planning is one of them. Preparing a simple will sounds easy enough, but one small mistake could potentially negate the entire estate plan. Estate planning attorneys do much more than prepare a will or trust. Experienced Durham, NC planning attorneys from NC Planning can walk you through end-of-life arrangements, set up a Special Needs Trust, prepare a financial or medical power of attorney document or a Living Will to detail your wishes in the event you become incapacitated, maximize tax benefits, help you plan for your retirement, or set up a guardianship for your children.
When your estate plan is prepared by an NC Planning professional, you can rest easy, knowing your plan will work seamlessly, just as it is meant to do. There are multiple benefits of having highly skilled Durham, NC estate planning attorneys from NC Planning in your corner. Your estate taxes and be reduced, you can ensure the charitable organizations you support can continue to be supported after you are gone, and you can ensure ongoing income is provided to your loved ones after your death. When you have an estate plan prepared, you are saving your family members from making difficult decisions in the event of your incapacitation or death.
Durham Estate Planning Case Illustration
Jim is a surgeon in his late fifties. He is divorced and has no children, however, as an only child, Jim expects to be responsible for his elderly parents whose health is declining. Jim has a prior will, which needs to be redone to account for his new marital status. Durham is the 74th most populous city in the United States, with a population of almost 290,000. Jim works at Duke University Hospital and has several rental properties, his primary residence, and some real estate holdings in New Mexico, where his uncle lives. While Jim is familiar with the estate planning process, he wants to effectively start from scratch. Jim wants to be sure his parents are taken care of if something should happen to him, and he also wants a plan that will reduce his tax burden, while allowing him to pay out his ordered alimony in one lump sum so he has no more obligation to his ex-wife, Sharon.
Jim also has an interest in a medical supply business with a couple of his physician friends. He wants to address that in his estate plan as well. Jim makes an appointment with the Durham, NC estate planning attorneys at NC Planning. After describing his goals for the estate plan, Jim has some questions for the NC Planning attorneys, which are answered in a comprehensive, yet easy-to-understand manner. Jim leaves the NC Planning office feeling as though a burden has been lifted from his shoulders. He has set in motion the beginning of a thorough estate plan that will address every aspect of his life yet can be altered should Jim’s life change in a significant way.
Parts of an Effective Estate Plan
Each estate plan will be unique in some way since every person and their circumstances are unique. Your estate plan will likely have one or more of the following components:
- Will—You must be 18 years of age and of sound mind to make a will in the state of North Carolina. While a handwritten will is legal under specific circumstances, it will require three people to go to court after your death and testify under oath that the will is written in your handwriting. A “self-proving” will is one that you sign and that is signed before two witnesses in front of a notary public. A will is a useful tool for many reasons but is essential for naming a guardian for minor children.
- Living Will—A North Carolina Living Will or Advance Directive provides instructions to your health care providers and Health Care Agent regarding end-of-life support and life-sustaining measures.
- Power of Attorney—There are many different types of power of attorney documents, however, the primary two types are a financial power of attorney and a healthcare power of attorney. The financial POA allows a person of your choice to handle financial and business matters in the event of your incapacitation, or if you are out of the state or country for a period of time. The healthcare POA allows a person of your choice to make medical decisions on your behalf should you become incapacitated.
- Healthcare Proxy—A healthcare proxy allows a named agent to make healthcare decisions on your behalf if you are incapacitated. A healthcare proxy is very similar to a healthcare power of attorney, so you only need one or the other.
Comprehensive Estate Planning Components
- Trust(s) are important components of estate plans. There are many different types of trusts. Some benefit spouses, others benefit family members or charitable organizations, while others are specifically for a special needs child. Some trusts shield your assets from probate and lawsuits while others provide an income for you for a specific amount of time, with the remainder of the trust going to a charitable organization. A trust may be revocable or irrevocable. A revocable trust can be altered or dissolved, while an irrevocable trust cannot.
- Family LLPs are family limited partnerships—arrangements between family members that pool money to buy shares of a business. The family member receives profits from the business in direct proportion to his or her number of shares. The Family LLP is governed by a partnership operating agreement and can have two or more family members.
- Charitable Planning is an important part of your estate plan if you often donate to charity. A charitable trust can provide an income for you or your heirs for a certain length of time, with the remainder of the trust going to a charitable organization of your choosing. Giving to charity strengthens personal values and can build and strengthen communities.
- Insurance Planning may refer to life insurance, or to other types of insurance, including personal insurance, property insurance, auto insurance, or other types of liability insurance. You may also have long-term care insurance. Term life insurance pays out a death benefit if you die during the “term” of the policy—usually 10-30 years. Whole life insurance is more expensive but stays in effect for your entire life. Life insurance is an important part of your estate plan, allowing you to ensure those you leave behind will be taken care of.
- LTC Planning is a subject few of us want to discuss. It is, however, a very necessary component of an estate plan. It is important that the assets you have worked your entire life for are properly shielded in the event you or your spouse must go into a long-term care facility.
- Final Expenses include burial expenses, funeral expenses, and cremation expenses. When you have set aside money—or purchased insurance—for these expenses, it takes a significant burden from your family members, allowing them to grieve without worrying about the cost of a funeral.
- Retirement Account Planning can involve your current retirement accounts, setting up a new retirement account, or a combination. The Secure Act provides certain provisions that affect employee retirement savings plans. The goal is to improve the overall retirement outlook for employees. Employers that start a new retirement plan after December 29, 2022, must automatically enroll employees at a rate of three percent but not more than 10 percent of eligible wages. Only companies in business for less than three years and those with less than ten workers are exempt from the Secure Act.
- Buy-Sell agreements are a primary component of business succession planning that provides an orderly transition of ownership and business management either during your lifetime, or upon your death. The buy-sell agreement allows you to retain control of your business until you choose—upon retirement, death, disability, or another specified event.
How to Choose the Best Durham, NC Estate Planning Attorneys to Secure Your Legacy
Choosing Durham, NC estate planning attorneys may seem like simply another chore you must contend with. Your choice is an important one, however, as your estate planning attorney will become a trusted partner in your quest to ensure your loved ones are provided for and your future is secure. At NC Planning we provide exceptional Client Care. Rather than simply talking about client-focused estate planning, we live and breathe it. Our legal team is responsive, accountable, friendly, and willing to openly communicate with our clients. When you want a solid partner for the road ahead, choose Durham, NC estate planning attorneys from NC Planning.
How NC Planning Will Help You Plan for the Road Ahead
When you choose NC Planning, your assets will be thoroughly protected as we help you plan for the future. We will address any tax burdens you may have, helping you integrate investment planning techniques that are specifically tailored to you and your situation. The Durham, NC estate planning attorneys at NC Planning will ensure your legacy is secure through a comprehensive estate plan and solid generational planning. For your convenience, we have offices in Cary, Raleigh, Greensboro, and Wilmington, NC. Contact Durham, NC, estate planning attorneys from NC Planning today!
