Preparing for the probate process is a big part of estate planning. Probate is simply the collection of laws and rules that have to be followed before the property a deceased person leaves behind goes to new owners or inheritors. To properly plan ahead for probate you have to know the difference between the kind of property that must go through probate and the kind that can avoid it.

While every state has its own laws about what is covered by probate and what isn’t, there are some general principles that apply regardless of where you live. In general, probate property includes real estate, cash, personal property, and investments. Non-probate property, on the other hand, includes jointly held property with the right of survivorship, life insurance benefits, and perhaps a personal vehicle or even bank accounts or credit union accounts up to a specified dollar amount.

So, after you die, your property will be lumped into two basic groups: probate and non-probate property. The probate property will have to go before a probate court while the non-probate property will not.

The reason this is important is because probate can be problematic. It can be somewhat expensive and last longer than many people would like.

Fortunately, almost anyone can avoid probate entirely, or as close as possible. By creating a revocable living trust, you can transfer your property to the trust to own. That way, even property that would normally have to pass through probate first can avoid that requirement because the trust owns it and not you.

Dealing with a death in the family is always a difficult time. Today, many deaths come not unexpectedly, but after lengthy hospital stays or situations where the family has had time to prepare. While this time can make it easier on the family when the loved one dies, this isn’t always the case. Even knowing in advance that a family member will die doesn’t guarantee that your grieving time will be easier to bear.

To help you during this difficult period there are some practical steps you can take that will allow you to experience the grieving process without distraction.

Plan ahead for the funeral.

The practical requirements of planning a funeral can often seem daunting, especially when you are required to do so after learning of a sudden death. If you know in advance that the family member will die, you should take some time to finalize funeral arrangements before the death actually occurs. Arranging for payment, finalizing the details, and consulting with family about the ceremony preferences is something that can help you prepare.

Be ready for the legal process.

From obtaining copies of the death certificate to initiating probate, there are a number of legal processes that apply after a person dies that you need to be ready for. If you have not already done so, you will want to consult an attorney experienced in estate planning and probate.

Don’t be afraid to ask for help.

Grieving people often fail to remember to take care of themselves in some very basic ways. Do not be afraid to ask friends if they can provide you with some simple assistance, such as bringing over occasional meals or coming over to do some basic household tasks as soon as you learn your loved one has died.

If you have made a will in Greensboro, North Carolina and have ever wondered how to change or revoke it, North Carolina law allows you several options. While revoking the will is entirely your choice, there are several reasons why you may want to do this.

Most people will revoke an old will after they change their minds about its terms or experience a change in circumstances that requires them to make new terms. Its very common, for example, to revoke an old will after you get divorced, have a new child, or experience a significant change in financial circumstances.

Creating a New Will

Regardless of your individual reasons for wanting to revoke your old will, the best way is to create a new will that accurately represents your wishes. Like your old will, you must ensure that the new document complies with North Carolina law. Also, the new will should contain what is known as a revocation clause. This is simply a statement that tells the court that any will you made before the new one is effectively revoked.

Destroying the Old Will

It is also possible to revoke a will by physically tearing it up, burning it, obliterating it, shredding it, or in any other way destroying it. You have to intend the destruction to revoke the will, and either do it yourself or direct someone else to do it if you are not physically able.

Unfortunately, physically destroying the will is not a great way to revoke it, and it is always better to create a new will instead.

If you are making a will in Greensboro, North Carolina and are using it to pass inheritances, you may want to think about developing an active gift strategy as well. While you can easily develop an estate plan that focuses on giving gifts through inheritances, developing a living gift giving strategy can provide you with some significant tax benefits. You’ll need to speak to your lawyer about developing a gift giving plan, or determining if such plan is right for you, but here are some tips you can keep in mind.

Focus on individuals.

Giving gifts as a part of an estate plan is all about providing individuals with monetary gifts during your lifetime. Tax laws place a maximum amount you can give every year without incurring tax penalties, but there is no limit on how many people you can give gifts to. Developing a list of your closest family members or friends can help you determine how many gifts you want to give each year.

Know your limits.

Tax laws establish a maximum lifetime amount of gifts you can give, as well as setting a maximum amount you can give each year to each individual without incurring taxes. Never exceed these amounts, and always know how much you have given in relation to your maximum lifetime limit.

Make it a habit.

A good gift strategy is one that you can easily follow. It’s common, for example, to give gifts on birthdays or holidays because these dates occur at the same time every year and they are easy to remember.

All adults in Greensboro, North Carolina should take the time to create a last will and testament. But just because you create a will that doesn’t mean you can stop your estate planning efforts. Wills are necessary pieces of any estate plan, but they are not capable of meeting all of your needs. At the very least you will also want to create a revocable living trust that will go hand-in-hand with your last will and testament. Here is why.

Wills

A last will and testament is excellent at performing a range of tasks. For example, only through your will can you appoint a guardian who will care for your children should you die while they are still young. You can also determine who will inherit your property after you die, but using a will to do this is not the most efficient way.

Living Trusts

Living trusts are excellent because you can use them to distribute your property after you die while avoiding the requirement of going through probate. Any property you leave in accordance with a last will and testament will have to go through probate for new owners take possession. A trust allows you to bypass this process.

Coordination

If you create both a trust and a will, you can be assured that you’ve done everything you can to make it easier for your family to inherit your property after you’re gone. Your will can serve as a safety net for your living trust, distributing any property that you didn’t transfer to your trust, while the trust becomes the main way you determine inheritances.

You can learn much more about living trusts at our next free seminar on Tuesday, May 14th. The seminar will be held at the O. Henry Hotel in Greensboro, North Carolina and will last from 6:00 PM to 7:30 PM. Contact our offices for registration details if you are interested or just want more information.

Anyone managing an estate in North Carolina has a range of duties required of them under North Carolina’s probate laws. Part of these duties include notifying creditors of the decedent’s death, as well as evaluating claims filed against the estate. It’s vital to carefully evaluate all of these claims because some of them may in fact be fraudulent and arise as a result of identity theft.

A new study issued by ID Analytics, a financial security company, reports that about 800,000 deceased people had their identities stolen last year by thieves who used that information to open fraudulent lines of credit, such as credit cards and cellular phone accounts. Another 1.6 million deceased people had their Social Security numbers used for fraudulent purposes.

As an administrator you need to be aware of the potential for identity theft even after the death of the decedent. To properly deal with this situation there are several steps you can take.

First, always notify the proper local, state, and federal officials as soon as possible after the decedent’s death. To do this you will need to obtain numerous copies of the official death certificate.

Second, be very cautious when sharing personal information about the decedent. If you are involved in managing the decedent’s affairs prior to death, it’s especially important, for example, to know who has access to sensitive information.

Third, always have an experienced North Carolina probate attorney advise you about what your duties are and what you can do in case any identity theft situation arises.

If you ask the average person what elder law is and why it’s important to them, the chances are that you’ll receive an answer that depends largely on how old that person is. Most young people don’t spend a lot of time thinking about elder law issues even though these issues can apply to people other than the elderly. There are a number of elder law issues that everyone should be aware of regardless of their age.

Losing the Ability to Make Choices

When people visit an elder law attorney they often ask about what they can do to make sure that their financial obligations are met and that their medical choices are honored, should they become incapacitated because of a medical situation or as a natural result of the aging process. There are several options available to you in preparation for such a possibility, but they are open to everyone and not just seniors. As long as you are a mentally capable adult you can create powers of attorney and medical directives that can be used in such a situation to ensure your choices are honored.

Creating an Estate Plan

While most elderly people think about creating a last will and testament, younger people rarely do, even though anyone age 18 or older who is legally competent, can do so. An estate plan includes a last will and testament but it also includes other tools, such as powers of attorney, trusts, or long-term care plans. Younger people may not need all the elements that a senior’s estate plan includes, but every capable adult should have at least a basic estate plan ready.

Anyone who has thought about creating an estate plan in Greensboro, North Carolina has probably considered creating a living will or other type of advance medical directive. Living wills are very different than last wills and testaments, and address your medical wishes not your property choices. Yet only about 20% of the general population has taken the required steps to create medical directives that would ensure their medical wishes are followed should they become incapacitated.

This number is particularly low especially when compared to the number of physicians who have created a living will or healthcare proxy. According to one study, about 64% of American doctors have some kind of advance medical directive.

Though it is not clear exactly what these directives choose, most doctors have first-hand experience with the limitations of medicine. Because of this, it is believed that their medical directives state their preference for not receiving heroic measures should they succumb to a fatal or terminal illness and face the prospect of, for example, receiving CPR after their heart stops.

This difference can be explained, at least in part, when you realize how different CPR is portrayed in movies and films versus its reality. For example, one study showed that people who receive CPR in television and movies will go on to survive more than 70% of the time.

Contrast this with the reality that CPR recipients only go on to live a month or more 8% of the time. Of that incredibly small number only 3% then go on to live a regular life.

What this means for doctors is that they have no illusions about the prospects of surviving a terminal illness, while the average person probably bases his or her information on the false reality seen in popular television and films.

For many a young man growing up in the postwar baby boomer era, Annette Funicello was the epitome of the girl next door. Her rise to stardom in the 50s and 60s made her a household name, and though she had faded from the celebrity spotlight decades ago, word of her death earlier this month at the age of 70 touched millions around the country.

When she joined the original “Mickey Mouse Club” at the age of 12, Funicello quickly became the single most popular member of the 24-person group. Following the show’s cancellation, Funicello entered into a contract with Disney Studios and began appearing in television, films, and even began recording her own music.

She appeared in several television shows in the mid-to-late 1950s, and even appeared on her own serialized program “Annette.”

After making her feature film debut in 1959’s “The Shaggy Dog,” she went on to appear in several other Disney movies, but as she matured she transitioned into a series of popular beach films. Many of those films she starred alongside her popular costar Frankie Avalon, and the two became an inseparable box office draw.

After mostly removing herself from the public spotlight to start a family, Ms. Funicello found out in the late 80s that she had been diagnosed with multiple sclerosis.

Funicallo battled the disease for decades, and it left her mostly comatose during the last several years of her life. She started the Annette Funicello Research Fund for Neurological Diseases, a charitable organization dedicated to researching multiple sclerosis in hopes of finding a cure. She leaves behind a husband, three children, and three grandchildren.

None of us are getting any younger, and for children of elderly parents there are some specific questions you need to ask your parents before it is too late. Talking to your parents about these issues is often very difficult, so you may want to think about how to bring up this discussion in advance and in a way that isn’t too confrontational or accusative. Here’s what you need to talk about.

Do you have a financial planner?

Discussing finances and money is often a very touchy subject, so you shouldn’t ask about specific saving amounts or investments. Instead, ask your parents if they have a financial planner or someone who can advise them. Ideally, the financial planner should be a fiduciary, meaning someone who has a legal obligation to look out for your parent’s best interests over his or her own.

Do you have a will?

A last will and testament is a necessary part of any estate plan, and asking if your parents have one will usually let you know if they have thought about estate planning at all. If they don’t have one it can be a good idea to help them find a good estate planning attorney in your area.

Have you thought about medical wishes?

Elderly parents should consult with their doctors and their estate planning attorney to create advance medical directives. They may never need them, but thinking about end-of-life medical issues is very important, especially if they are ever left in a position where they can no longer express their desires.