NORTH CAROLINA INHERITANCE PLANNING –

PART2

CHERYL K. DAVID

North Carolina Estate Planning and Elder Law Attorney

“Through your Will you can Determine who you want to Inherit your Property after you die, as well as make other

Essential Estate Planning Choices, such as Choosing an Executor of Your Estate.”

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In this second part of our two-part discussion on North Carolina

inheritance planning, we are going to look at some additional questions

that we didn't directly address last time. As with any discussion of legal

ideas and common questions, it's important to remember that no

discussion will ever be an adequate substitute for personalized legal advice.

If you are concerned about inheritance planning, have questions, or need

advice, be sure to talk to your lawyer as soon as possible.

WHAT IS THE EASIEST WAY TO MAKE AN INHERITANCE

PLAN?

We get this question, or variations of this question, all the time. A lot of

people come talk to us and ask what is the absolute minimum they need to

do in order to create an effective inheritance plan. And while the answer to

this question is often

more complicated

than people would

naturally assume,

the simplest of all

inheritance plan

involves creating a

last will and

testament.

A will, as most

people know, is

simply a document in which you can state your inheritance choices.

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Through your will you can determine who you want to inherit your property

after you die, as well as make other essential estate planning choices, such

as choosing an executor of your estate. Additionally, wills allow you to

choose a guardian for any minor children you might have, as well as make

other important choices.

However, even though a will is often seen as a relatively simple document,

it is anything but. The legal requirements that apply to these tools are

relatively straightforward, but simply crafting a will that meets all the

relevant legal requirements is not enough. You will have to make sure that

each of the clauses you include in your will address the topics you need to

address. Many of these clauses, and options, can be rather obscure, and

most people will not really know to include them until they speak to an

attorney.

WHY DO I NEED TO WORRY ABOUT PROBATE AND NON-

PROBATE PROPERTY?

Anyone creating an

inheritance plan

needs to understand

the difference

between probate and

non-probate

property because this

distinction directly

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affects how your inheritances will be distributed. In general, all the

property you leave behind after you die will be divided into two types:

probate and non-probate property. Probate property will have to go

through the probate process before anyone can inherit it, while non-

probate property can be passed directly.

The distinction here is important because the probate process can be

lengthy and expensive. If you want to pass inheritances as quickly as

possible, you'll focus on creating an estate plan that maximizes non-probate

asset transfer methods. This can be done in a variety of ways, but typically

involves the creation and funding of a revocable living trust, as well as the

use of transfer-on-death accounts and other non-probate property types.

WHAT ELSE CAN I USE BESIDES A WILL?

Because wills are the most commonly understood inheritance planning

device, a lot of people are surprised to learn about the wide range of other

options they

have when it

comes to

creating an

inheritance

plan.

As we

mentioned

briefly above,

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inheritance plans can also include a variety of other tools, such as revocable

living trusts. They might also include testamentary trusts, transfer-on-

death accounts, and even more complicated options. Your attorney will

explain all these options to you and advise you on which would be most

beneficial for you in your particular circumstances.

YOU NEED ADVICE.

When it comes to legal issue such as inheritance and estate planning, you

need to be sure that you have done everything to protect your choices. Even

if you are only planning on creating the simplest of inherit the plans, the

tools you create have to meet some fairly stringent legal standards. None of

your wishes will be honored if you fail to ensure that those standards are

met, and if your plan is found to be invalid, all of your hard work will be for

nothing.

If you haven't already done so, it's important for you to schedule an

appointment to come speak to us about your inheritance planning concerns

as soon as possible. Once we speak to you about you want to accomplish,

explain the options that are available to you, and advise you on what would

be best for you and your circumstances, only then will you be able to make

the right choices.

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ABOUT THE AUTHOR

Cheryl David is a graduate of UNC-Chapel Hill, the

University of Baltimore School of Law, and the

prestigious Trial Lawyer’s College presided over by

Gerry Spence. A former Administrative Judge, Cheryl

is certified as an Estate Planning Law Specialist by the

ABA accredited Estate Law Specialists Board, Inc. She

is also a member of the American Academy of Estate

Planning Attorneys, Medicaid Practice Systems and

the National Academy of Elder Law Attorneys.

In 2008, Cheryl received the honor of becoming a Fellow with the American Academy of Estate Planning Attorneys. The Fellow program recognizes Academy Members who demonstrate advanced expertise and significant practical experience in the total estate planning, trust, tax planning, guardianship, probate and estate administration fields. In order to maintain this advanced expertise, Cheryl takes over 36 hours of continuing education in Estate Planning, Elder Law, and Taxation each year. Also a Financial Planner, she holds the Series 7 and 66 Investment Licenses in addition to both Insurance and Long Term Care/Medicare designations.

Her professional capabilities, together with over 25 years in practice, have combined to bring positive change to the lives of over 4500 clients and their families.

528 College Road Greensboro, NC 27410 Phone: (336) 547-9999 Fax: (336) 547-9477

WWW.CHERYLDAVID.COM