During the past few months, we have published an Estate Planning Series in our blog starting with the basics of Wills and Trusts, to choosing the right planning tool, followed by an overview on Irrevocable Trusts, protecting digital assets, and finally maintaining an estate plan to the end. Estate planning can be a daunting task. Our final blog in our Estate Planning Series tackles some common questions that often arise around estate planning.
1. What happens if I die without a will or estate plan?
If you pass away without a will or estate plan in North Carolina, your assets will be subject to the state’s intestacy laws. This means the court will determine how your assets are distributed, typically following a predefined order of how the law predicts the average person—not you specifically—would distribute your assets. This may not align with your wishes and could lead to unintended consequences, including assets going to distant relatives or creditors.
2. Why should I make a will if I’m happy with North Carolina’s intestacy laws?
While North Carolina’s intestacy laws provide a default distribution plan, creating a will allows you to specify your exact wishes. A will also allows you to plan for affairs not addressed by intestacy laws. These affairs include matters like appointing guardians for minor children and appointing an agent to manage your digital legacy desire.
Having a will also simplifies the probate process for your loved ones and minimizes conflict surrounding the distribution of specific items in your estate, as you can distribute specific items to chosen beneficiaries and expressly set forth your wishes.
3. I don’t have a lot of money. Do I need a trust?
The need for a trust depends on your specific circumstances and goals. Trusts can be valuable tools for asset management, avoiding probate, and ensuring a smooth transition of assets to beneficiaries. Even if you don’t have substantial wealth, a trust can still be beneficial, especially if you have complex wishes or want to protect certain assets, like a family home, for future generations, or desire your estate to be privately distributed.
4. What is probate, and why should I want to avoid it?
Probate is the legal process through which a deceased person’s assets are distributed and their final affairs are settled. While probate ensures that debts are paid and assets are transferred, it can be time-consuming and costly. Avoiding probate through estate planning techniques like trusts or beneficiary designations can save time, money, and maintain privacy.
5. Can my spouse and I share a will?
In North Carolina, joint wills are enforceable, but they may not always be the best option. Joint wills can limit flexibility, especially when one spouse dies, and may not adequately address individual concerns. It’s often advisable for each spouse to have their own individual wills, which provide more control and flexibility while still aligning with shared goals.
6. Are online wills sufficient?
Online wills can be a convenient and cost-effective way to create a basic will. However, their suitability depends on the complexity of your estate, your family dynamics, and your unique goals. Online wills may not address all of your specific concerns and may not comply with North Carolina’s legal requirements. Furthermore, without guidance you may select an improper document or improperly execute such document. As they say, “You don’t know, what you don’t know.” To ensure your estate plan is legally sound and tailored to your needs, consulting with an experienced estate planning attorney is advisable.
Estate Planning is a Personalized Process and Unique for Each Person
Estate planning is a personalized process that requires careful consideration of your unique circumstances and goals. While this FAQ addresses common questions, it’s essential to seek professional guidance to create an estate plan that fully aligns with your wishes and complies with North Carolina law. Skufca Law is here to assist you every step of the way, ensuring that your legacy is protected, and your loved ones are provided for according to your desires.
For more information and help creating or updating your estate plan contact the attorneys at Skufca Law or call (704) 376-3030 to schedule a Wills & Trust consultation.