FAQ

During our first meeting, I will analyze your situation and let you know what sort of estate planning I would recommend and why. For estate planning, we utilize both package rates and hourly rates depending on the situation. I can usually estimate a range where your bill would fall for the planning after we meet or quote you a package rate where appropriate.

I can usually approximate the estate administration fees as well and charge a lesser rate for my paralegal whom I incorporate in the administration whenever it is feasible. There is no obligation to use me after our consultation if you are uncomfortable in any way; however, we do charge for this consultation time.

I tell clients to think of the revocable trust like a bucket that you can put assets into and take them out of at your discretion when you are your own Trustee. Any assets titled in or made payable to a revocable trust at the time of death avoid probate, thus minimizing probate fees and avoiding public disclosure of assets through the court records. The terms and rules of Revocable Trusts vary, but whether or not it is a vehicle for you would be a discussion to have with your estate planning attorney.

A good foundation includes a General Durable Power of Attorney which allows you to name someone to take care of your finances if you are unable to do so yourself, a Health Care Power of Attorney which allows someone to make healthcare decisions for you if you are unable to do so and a living will which provides when you would want to receive life support if at all under certain circumstances. In addition, HIPAA releases are necessary along with direction as to how to hold your assets or whom to name as beneficiary. As mentioned above, you may or may not need a revocable trust.

At your death, your assets may or may not pass as you would wish. Some assets pass by contract such as to a beneficiary of a life insurance policy or a payable on death account, by ownership designation such as to a joint owner with rights of survivorship on a deed to real property or possibly a checking account. All other property will pass through the probate court to your intestate beneficiaries if you don’t have a will. Even if you do have a will, your beneficiary designations will override the will and sometimes cause problems with your planning. The intestacy (if you die without a will) statutes can be found under Chapter 29 of the North Carolina General Statutes and Title 62 – South Carolina Probate Code, Chapter 2, Intestate Succession and Wills. Your assets may or may not pass as you would wish under these options and often involve minor children which creates a whole other issue (see below).

I am particularly cognizant of this issue as I have helped several young widows/widowers with young children. One important role in your will is the physical guardian of your minor children. This is the person who will physically keep your child in their care. Particular thought should be given not just to this person, but to a successor guardian as well in case the person named is unwilling or unable to accept such responsibility.

In addition, we also usually name a Trustee who oversees and is responsible for the assets for the children until they reach such age(s) as they can take over the assets themselves. There is much to discuss and consider when choosing who will fill this role, so it is best to discuss it with your estate planning attorney.

Another great concern is the court’s involvement when minor children receive assets outright. This can cause a guardianship of a minor’s estate court proceeding which can be costly and again, not necessarily as you would choose. In this situation, the children receive all the assets at 18 and the court appoints someone to oversee the funds which must be principal guaranteed until they are 18 and no one can touch the assets without the court’s permission until that time. This concern is applicable to anyone with minor children, whether they have a will or not.

I would have an estate planning attorney review your documents in the state in which you now live. At the very least, it is likely you should have your General (Durable) power of attorney and your Health Care Power of attorney/Living Will updated to adhere to the statutes in the state in which you now live. Your other documents may or may not need updating.

This is a concern I’ve seen on the post-death side again and again which creates problems only after the parent is gone and can’t answer questions as to their desires. There may be times when this form of “estate” planning is acceptable, but I would highly recommend having an estate planning attorney review the asset types, values and titling to verify the assets will truly pass as you wish. One quote I hear often after a parent has passed is “This is NOT the way mama or daddy would’ve wanted it.” My job is to make sure the assets pass exactly as mama and/or daddy wanted them to pass, without question. I make sure my client(s) understand what they are signing and what their estate plan is, no matter how simple or complicated it may be. My job is to simplify it for you. In addition, if a child inherits an account, do not expect them to share with their siblings; they could incur a gift tax and, oftentimes, the child decides against sharing, causing issues with the other children.