Frequently Asked Questions on NC Estate Planning

WHY PLAN AN ESTATE?

1. Orderly transfer of assets.
2. Orderly payment of debts and taxes.
3. Arrange affairs for those who need assistance: minor children; individuals infirm because of physical, mental or emotional disabilities; special persons needing help with financial affairs.
4. Make provisions for one's own needs, including inter vivos trusts, powers of attorney, living wills, retirement funds.

HOW DO WE PLAN AN ESTATE?

1. Prepare a Financial Statement accurately reflecting assets, values, debts, ownership, limitations or restrictions on use or value such as life estates, restrictive covenants, buy-sell agreements.
2. Prepare a Funds or Capital Needs Analysis.
3. Review all insurance needs, including life, health, disability, property and casualty and liability.
4. Prepare a Personal Needs Analysis of the individual, the spouse, children, family and friends. Consider other matters such as charitable contributions.

WHAT DOCUMENTS ARE NEEDED FOR ESTATE PLANNING IN NORTH CAROLINA?

1. The Will, including special provisions for each person's needs (guardianship, charitable gifts, tax planning).
2. Inter Vivos (created while alive) or Testamentary Trusts (created at death in a Will).
3. Living Will.
4. Power of Attorney and Healthcare Power of Attorney.

WHEN IS THE PLAN COMPLETE?

1. Review and update the Plan every five years.
2. As personal and financial matters change, so does one's Plan.
3. As available products change (such as life insurance) and available planning techniques change (as a result of change in tax laws, primarily) planning needs also change. Needs also may change.

WHAT ARE MY REQUIREMENTS TO BE VALIDATED AND INTERPRETED CORRECTLY DURING PROBATE?

To be sure you are creating a Greensboro legal Will, you as the testator—the person creating the Will—must meet the following requirements:

• Testators must be of legal age and sound mind
• Testators must sign and date the Will
• The signature must be at the end of the Will
• The signing must be signed by two witnesses who do not benefit from the Will
• Heirs and inheritances must be clearly stated in the Will

IF I'M DIVORCED, IS MY FORMER SPOUSE ENTITLED TO ANY OF MY ESTATE?

No, unless you will it to him/her. However, a former spouse may have a legal claim against your estate as a result of a divorce settlement, child support requirement, or other order of court.

IF I LIVE WITH SOMEONE WHO IS NOT LEGALLY MY SPOUSE, ARE THEY ENTITLED TO INHERIT ANY OF MY PROPERTY?

No, unless you have provided for that person in your Will, the property is titled "jointly with right of survivorship" or property passes by contract (e.g. named as a beneficiary to a life insurance contract or qualified retirement plan).

CAN A STEPCHILD INHERIT ANY OF MY ESTATE?

No, unless you specifically provided for that child in your Will.

Contact Richard W. Gabriel of Gabriel Berry Weston & Wells LLP Today

If you are looking for legal help with estate planning or probate in North Carolina, please call Richard W. Gabriel toll-free at 877-361-0529 for an appointment with one of our attorneys or contact us online. Richard serves clients in Greensboro, High Point, Winston Salem, Burlington and Asheboro.