Issue 1: Your digital world. What do you have out there that others would need to know about if you die or are incapacitated? If you have a blog that earns income, for example, you essentially have a small business that you’ll need to transfer to others to run. If you have a Facebook account, a Flickr profile, or any other social media properties, what do you want to happen to these? What are the policies of the websites themselves and how do these affect you?

Issue 2: Access to your digital assets. Most digital assets have passwords, login names, and other security measures that must be accessed by anyone whom you nominate to take them over for you. Beyond passwords you may also have pin numbers, secret questions that require specific answers or other measures you’ll have to prepare for.

Issue 3: Transferring your property. Who gets your passwords, account information, and other digital asset information if you are incapacitated or die? Do you have a financial power of attorney ready? Have you mentioned these assets in your Will? You’ll need a complete list of digital assets plus the methods to access them if you want to hand over your digital life to someone else. Speak to us today for more detailed advice about the best way to go about doing it.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

1. Make your plans. Talk to your family about what kind of funeral arrangements you want so there is no misunderstanding when the time comes to implement them. You should also tell your estate planning attorney about your decisions so you can incorporate them in your estate plan.

2. Create a health care power of attorney. North Carolina, unlike some other states, doesn’t have a unique form that you need to fill out in order to grant someone else the power to manage your funeral arrangements. You can, however, appoint a health care power of attorney who not only has the right to make medical decisions if you get sick, but you can also let your agent manage what happens to you after you die. Your health care agent ensures your decisions about your burial, cremation and even whether you want to be an organ donor are followed.

3. Ask at least two people to act as your agent. Your health care power of attorney allows you to appoint one person to serve as your health care agent. However, if that person is unable or unwilling to serve, you’ll need a back-up. Ask both people if they are willing to serve, and then create a health care power of attorney document. Talk to your attorney about the state requirements you need to meet when creating your power of attorney.

If you are looking to create or modify estate planning documents, call us today at (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

During incapacity planning, it is likely you assigned a power of attorney, or principal, to assist you when you are unable to make your own decisions. However, while at the time this may have seemed a like a good idea, some circumstances may have occurred which caused you to change your mind. Or, even if you are steadfast in your decision, the power of attorney you have chosen might be considering backing out of their commitment or their circumstances may have changed which could make them unsuitable as your power of attorney.

What are your options for revoking your principal? If you are the principal and wish to step down, what do you have to do?

Keep in mind that a power of attorney is completely voluntary, so it is changeable at any time. You (the agent) or the principal (the person listed as your power of attorney) on the document, make these direct changes. The only thing you need to do is fill out a simple form called “Revocation of Power of Attorney.” The document is simple and contains the following information:

• The name of the principal
• The name of the person they are power of attorney over (the agent)
• The date the instrument is created
• Where the document is registered (if registered at the Registry of Deeds)
• Two witness signatures (not including the Notary Republic)
• Notary Republic signature and seal
• Prepared by section (if prepared by someone other than the agent or the principal)

If the principal is filling out and filing this revocation document, they must present copies to the agent as soon as possible. This is typically done through certified mail so there is a formal record documenting that the copies were, in fact, received in good and fair condition. If an estate planning attorney was involved in the creation of the original power of attorney document, the principal must also supply a copy of the revocation to them in the same manner.

If you, the agent, revoke the power of attorney, you must also provide copies to all parties involved in the manner outlined above. If you choose another power of attorney to replace the previous one, you must include a clause in your new power of attorney document. This clause states that your previous agent is revoked and a new one is assigned as stated on this instrument. Your estate planning lawyer will help you with all these forms as needed.

In the cases where the principal is unable to make their own decisions and is deemed mentally incompetent, the document then goes to probate court. There, the court will determine proceedings.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Powers of attorney let you give others the right to make decisions for you. As long as you are capable of freely choosing who receives your power of attorney and comply with state laws governing their use, you can give almost anyone decision-making rights. However, there are some limitations that apply when granting these powers.

A person who grants a power of attorney is known as a principal, and the person or persons who receive the power are known as agents or attorneys-in-fact. The basic requirement for any agent is that he or she is a competent adult. You cannot name a child to serve as your attorney-in-fact nor can you name anyone who is not capable of making choices. Also, the person you choose must be able to refuse the appointment and is under no obligation to accept the nomination.

There are more limitations when it comes to health care powers of attorney. In some states you are not allowed to grant your doctor or health care providers the right to make decisions about your health care when you are under their care.  However, you may be able to appoint a physician to become your health care agent if that physician is not providing your medical treatment.

Finally, it’s always important to choose someone you trust when granting power of attorney. Spouses, children and family members are often good choices for your attorney-in-fact, though in some situations you may wish to choose someone with specialized knowledge. For example, if you need to grant someone financial power of attorney to pay your bills while you’re on vacation, you may wish to choose your accountant, banker, lawyer or other professional who commonly handles finances on behalf of others.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Because there are so many questions looming over what a power of attorney is and why they are important, we are going to look at a basic introduction that will help answer some of these question and put things into perspective.

Simply put, the definition of a power of attorney is a document providing you with the necessary permissions to appoint a person or organization, otherwise known as the Agent or Attorney-in-Fact, the right to take care of all of your personal business when you are incapacitated. Specific powers of attorney include general power of attorney, special power of attorney, health power of attorney (also referred to as a medical power of attorney), and durable power of attorney. State specific documents are needed for each.

We are going to look at how a general power of attorney is defined, and what a power of attorney can do. A power of attorney is an important addition during your estate planning process. If you are unable to do the following, they can:

• Handle all government benefits in your name
• Purchase life insurance for you in your name
• File all of your tax returns
• Settle any claims that are in your name
• Entire into and handle the use of your safety deposit boxes
• Enter into contractual agreements on your behalf
• Handle all transactions in your name to include those with U.S. Securities
• Perform transactions on your behalf to living trusts (also known as revocable trusts)
• Obtain professional help when necessary to better handle your affairs
• Buy or sell property in your name
• Organize estate planning in order to avoid estate taxes

The only time a power of attorney can be assigned is if the person needing one is mentally competent. This person, otherwise known as the Principal, can take a physical examination in order to verify this if their competency is called into question. If the Principal is deemed mentally incompetent, the power of attorney document is neither legal nor is it binding.

There are cases where a Principal must revoke the document, and this is known as a revocation of the power of attorney. This revocation process removes all the rights the agent previously had, and terminates the contractual agreement. This can be a complicated and uncomfortable process for the Principal, and it is not uncommon to seek assistance from a lawyer. During this revocation, a new power of attorney document can be completed and enacted.

For p0wer of attorney questions, call our office and we will be happy to assist you – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

We never really know when a natural disaster could happen, putting our home and possessions at risk. It could be a fire, flood, tornado, hurricane or earthquake. We’ve all seen disasters happening around the country year after year where people’s personal belongings get scattered miles and miles away. Because of this, it makes sense to take great measures to protect your important documents so that you can recover them in the event that there is a natural disaster.

The first thing you have to decide is which documents are the most important. This would include things such as your will, trust, power of attorney, mortgage deed and insurance documents. You need to try and keep documents in two different places in case one of them becomes inaccessible or destroyed.

Many people keep their important documents in a safe deposit box at their bank. This is very easy to do for small yearly fee and gives you a higher level of security. Even if the bank is affected by the same natural disaster, the vault that safe deposit boxes are stored in will likely be standing when all is said and done. You can keep all kinds of things here including documents and jewelry. However, if you need to access your important papers on a regular basis, it can be pretty inconvenient to have it in a safe deposit box. You may decide to just keep your original items there and keep copies of them in another location, such as a home safe.

A home fireproof safe is a great place to keep these copies as they are very inexpensive and will allow you to access your paperwork if needed. Of course, these boxes are small enough to be stolen if you experience a break-in. Make sure that you keep things in a sealed plastic bag in case you are affected by a flood.

Finally, your personal attorney is another great resource for keeping your important documents secure. Normally, your attorney will keep a set of original documents so that you have another layer of protection.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

Many spouses designate each other to serve as agents under their Durable Financial Powers of Attorney, an arrangement that makes sense, as long as you stay married. But what’s the status of your Power of Attorney when you get a divorce?

In some states, divorce automatically terminates the authority of your former spouse to serve as your agent under a Power of Attorney that was put in place during your marriage. However, North Carolina is not one of those states.

So if you’re recently divorced, you’ll likely want to meet with your estate planning attorney to make sure you establish a new Power of Attorney naming someone other than your ex as agent. The same goes for your Durable Power of Attorney for Healthcare – if you no longer want your former spouse to make medical decisions on your behalf, you’ll want to name a new agent.

While you’re at it, you’ll also want to review your Will or Living Trust, as well as any beneficiary designations (such as those for life insurance policies, retirement accounts, and bank accounts) to make sure that your entire estate plan reflects your current circumstances and intentions.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

If your parents are getting older, you might be concerned about what will happen if their health fails, and they’re no longer capable of handling their bills, caring for themselves, or communicating with their doctors. 

This is a valid concern:  anyone, young or old, can find themselves very sick or injured and need help with these things. Yet, many people have no plan in place for what would happen in the event of disability.  And, without a plan, you’re faced with the expensive, emotional, and time-consuming process of Living Probate.

Fortunately, there’s something you can do to help your parents prepare for the possibility of disability.  You can strongly encourage them to put in place two essential documents:

1)       A Durable Financial Power of Attorney, which appoints an agent to take over financial accounts, pay bills, manage property, and take care of other essential financial tasks once your parents can no longer do these things for themselves.

2)      A Durable Power of Attorney for Healthcare, also called an Advance Directive, which appoints an agent to make medical decisions if your parents become too ill or are too injured to deal with doctors on their own.

These documents need to be put in place while your parents still have the legal capacity to do so – once your mom or dad becomes disabled, it’s too late for them to engage in estate planning of any kind. 

Once these two documents are drawn up and signed, you’ll want to make sure your parents have an estate plan in place.  A Will or a Revocable Living Trust can ensure that your parents’ wishes are followed after they pass away.  Without an estate plan, your parents’ estate would pass to relatives based on the requirements of state law.

In order to establish these above documents, please call our office at (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.

When it comes to making an incapacity plan, you’ll want to be sure you have a Durable Power of Attorney for Finances.  This document lets you appoint an agent, also called an “attorney-in-fact”, who can handle banking transactions, pay your bills, and manage your property and investments for you if you ever become mentally disabled.

What Does “Durable” Mean?

But, what makes a Durable Power of Attorney “durable”?  Simply put, a Durable Power of Attorney remains effective after you become disabled. 

A Power of Attorney that doesn’t specify that it’s durable, on the other hand, is only effective while you’re of sound mind and able to manage your own affairs. 

If your Power of Attorney is not durable, then, the minute you become mentally incapacitated,  your agent loses all authority to act on your behalf.

What’s a “Springing” Power of Attorney?

So, if you have a Durable Power of Attorney, your agent can act on your behalf starting the minute your Power of Attorney is properly signed and witnessed.   So, your agent can handle transactions for you if you’re away on an extended trip, or if you’re in the hospital for surgery. And his or her authority continues if you become disabled. 

But, what if you don’t want your agent to have authority to act on your behalf until you become disabled? In that case, you’ll need to ask your estate planning attorney for a Springing Power of Attorney.  By definition, this document does not take effect until after you’ve suffered a mental disability.

We can help you determine what type of Power of Attorney is best for you.   We invite you to spend some time with us so we can help you choose the estate planning documents that are right for you – (336) 547-9999.

The Law Offices Of Cheryl David is a member of the American Academy of Estate Planning Attorneys.