Contact:  Sabrina Winters

Phone:  (704) 843-1446

Email:  swinters@sabrinawinterslaw.com

With the stores crowded, traffic horrendous and holiday parties in full swing, the period between Thanksgiving and New Years Day is undoubtedly one of the most dangerous travel times of the year.  Charlotte lawyer, Sabrina Winters, urges families to be prepared by making necessary updates to their will, trust or other estate planning documents prior to the hustle and bustle of the season.

Charlotte, North Carolina – It is that time of the year again where the stores are packed, traffic is horrendous and holiday parties are in full swing.  And no matter what holiday you celebrate, this is certainly not the safest time to be out and about on the roads.

Between Thanksgiving and New Year’s Eve in 2002  alone, alcohol related crashes killed 1,561 people. That does not even account for the people who were simply injured or incapacitated for any length of time from their injuries.

According to Charlotte estate planning lawyer, Sabrina Winters, the holidays are the perfect time to make sure your will, trust or other estate planning documents are updated so your family stays protected should something unexpectedly happen to you.

“The holidays are a really smart time to make sure your estate plan is exactly how you want it to be should something unexpectedly happen to you and/or your spouse,” says Sabrina Winters,  ”Without an updated estate plan, your children could be left at the mercy of the courts, your assets in limbo and your physical or medical wishes may not be honored in the event of an accident,” Sabrina Winters adds.

Specifically, Sabrina Winters offers four things to consider when updating your estate plan prior to the holiday season:

1. Guardianship nominations:  Have you named guardians to care for your children if something happens to you?  Have you made sure those guardians will have the financial resources to care for your kids in your absence?  Are you even happy with the people you originally chose to care for your kids?  Sabrina Winters says if you answered no to any of these questions, it is time to pull your plan out of the drawer and make a few key changes.

2.  The effect of marriage, divorce or remarriage:  Is your ex-spouse still set to get half of what you own according to the directions of your prior estate plan?  If so, according to Sabrina Winters it is time to update!  Sabrina Winters recommends reviewing your plan carefully to make sure your beneficiaries are exactly as they should be in case something unexpectedly happens to you.

3.  Are your assets owned properly in the name of your trust: If you have a trust, Sabrina Winters says now is a great time to take an inventory of your assets and make sure they are owned properly in the name of that trust.  This is one of the most common reasons an estate plan will fail at the end of a person’s life.

4.  Do you have medical directives and POA’s if you are incapacitated?  If you are incapacitated in an accident but do not die, Sabrina Winters advises that you will need clear medical directives and power of attorney forms so someone you trust can make medical and financial decisions until you are able to speak for yourself.  If medical directives and POA’ were not included in your original plan, speak with a qualified attorney to have them drawn up before the hustle and bustle of the season starts.

“An updated estate plan is the greatest gift you can give to your family over the holiday season, ” says Sabrina Winters.  ”It is the only way to make sure your children, assets and wishes will stay protected should something happen to you during this dangerous time of the year.” Sabrina Winters adds.

For more information about Sabrina Winters, please visit www.ncestateplanninginfo.com or call (704) 843-1446.

Bio:

Sabrina Winters has been assisting clients with all their estate planning needs for over ten years. As a woman, a mom, a wife and business owner, she brings her personal experiences as well as legal experiences to her clients.  Regardless of what stage in life you are or your asset level, Sabrina Winters has the experience and skills to plan for your particular needs.

I am not certain through whose eyes they determined this. I look around and still see far too many families struggling to recover to consider it over.   And while I acknowledge things may be improving on some level, I still find it hard to objectively look at a parent who cannot find work or lost a huge chunk of a 401(k) plan to say our Country is officially in the clear.

The number of bankruptcies taking place right now equally saddens me.  For many families, bankruptcy may be the only way to break free from the mountain of debt that constantly rests on their shoulders.  Of course that’s not to say this decision is ever taken lightly by those who file, as the consequences of bankruptcy are long-lasting and sometimes severe—especially if you stand to inherit money.

Example: a family member passes away who left you a cash gift in a will or trust.  On the surface it seems like this would be a much needed and timely relief for a family going through bankruptcy.  However, Federal bankruptcy rules declare that if you inherit money from a person who dies within 180 days of the date you filed for bankruptcy, you must tell the courts.   In simple terms, that means the inheritance now becomes a part of your bankruptcy estate and will be distributed to your creditors as the courts see fit.

This also applies to items that you may inherit such as cars, jewelry or furniture.  All of these items are subject to the administration of the bankruptcy estate.  However, this doesn’t mean that items like this are certain to go up on the auction block.  You can claim exclusion on certain things and the bankruptcy trustee has a certain amount of discretion in choosing what to liquidate. However, it can be extremely stressful to think about a family heirloom that has been in your family for years going to auction.

Hopefully your loved one had a Charlotte wills and estates attorney who knew a thing or two about protecting their inheritance from things like bankruptcy, creditors, divorce and the like. Ideally, your loved one would have been advised to set up a trust so any inheritance passed down to their family members would be out of reach from creditors and the courts.  If they did not, and you have not filed bankruptcy yet, this may still be an option if your loved one is willing to have their plan looked at by a qualified Charlotte wills and estates attorney.

Planning to avoid giving your hard-earned wealth to creditors is not illegal or immoral either.  You should think of it the same way you would when considering tax planning.  Tax planning is legal, but tax evasion is not.  The difference is whether you play by the rules and are honest.  For example, not telling the courts you received an inheritance is illegal and you could face serious consequences.  However, you are not skirting the rules if you are the recipient of a spendthrift trust; that was not your choice.

If you or your loved one needs help facilitating such a trust to protect your inheritance from the claims of creditors, simply call our Charlotte wills and estates office at (704) 843-1446 to schedule a “Peace of Mind Planning Session” at no charge ($750 value).  We will walk you through the necessary steps that must be taken to protect your inheritance from a bankruptcy filing or any other creditor’s claim. However, these appointments are limited to 5 per month so call today!

Youth is often used as an excuse for putting off doing a Last Will and Testament or a Living Trust.  The thing is, that estate planning is not just about planning for your death; it also includes planning for yourself personally in the event you experience an incapacitating injury and are unable to make your own financial or medical decisions.  While the odds are certainly in your favor that you will not need an estate plan (we are all invincible when we are young!), you should still consider these four scenarios…

1.  You need a plan in the event that you become disabled or incapacitated.

Unfortunately tragedies happen every day, many of which are out of our control.  And you are not immune to them because you are young.  Just turning on the local news will be evidence of that.  If something happens to you and you are no longer able to make decisions regarding your own financial, legal, and medical affairs you will need to make sure that there are basic documents in place (such as a medical directive, power of attorney and HIPAA authorization) so someone can make life decisions for you.

2.  You need to pass your assets.

You might be asking, “What assets?”  Even if you do not yet own your own home, you need to consider IRAs, retirement accounts and life insurance policies offered through your employer. You need to make sure that beneficiaries are named in the right way so that the people you want to leave them to get maximum benefit.

3.   You need to name guardians for your kids.

If you have children, you simply must name guardians.  You should be the one who decides who will raise them if you are no longer around.  You do not want this decision left to squabbling relatives or to a court system that doesn’t know you, your child or your family dynamic.  You might be thinking that everyone in your family loves your children, that there won’t be any problems.  If they all love your children, they will all probably want to raise them, right?  If they all want the same thing, this will have the potential of becoming a battle…do you want your children to be put through that after having lost their parents?

4.  You need to plan for your pets.

If you have a pet, chances are they are a big part of your life.  They are totally devoted to you and also totally dependent on you.  Have you stopped to think what might happen to them if something were to happen to you?  If you want to make sure your companion is cared for if the unexpected happens, you could choose to put together a plan for their continued care.  The plan may include directions about feeding, medical care and other needs along with funds necessary to provide for your pet’s support and to compensate the caretaker.

The scenarios above are just a few to consider when educating yourself on the importance of having a Last Will and Testament or a Living Trust.  I encourage you to talk with a Charlotte, North Carolina wills and trusts lawyer.  Only then will you have the peace of mind of knowing that you are fully protected.

1. both pass along specific assets,

2.  both name guardians,

3. both are written,signed and witnessed;

4.  both can be amended and revoked.

The differences between both are what sets them apart:

A Last Will and Testament, appoints an Executor who then takes the original Last Will and Testament to the Probate Court after the person dies. The assets are then collected and distributed according to the directions in the Last Will and Testament.  There are North Carolina Probate Court rules and regulations that need to be followed by the Executor once he or she has been appointed.  During the lifetime of the person who created the Last Will and Testament, the title of assets are not changed.  However, the names of beneficiaries may need to be changed to keep everything consistent with the Last Will and Testament.

A Revocable Living Trust appoints a Trustee and a Successor Trustee. This person manages the assets in the trust after death.  If done properly, a Revocable Living Trust will avoid probate. How?  Because the title of assets (not all) will be changed to the name of the Trust.  This is called Funding the Trust.  If the asset is not in the name of the person who died, then there is nothing to probate.  Ultimately, avoiding Probate.

I must caution you that there are certain assets that should not be titled into the name of the trust and there are beneficiary designations that must be changed in order for the Revocable Living Trust plan to work.  You should consult with an attorney, a financial planner and a CPA prior to making any changes – if you don’t you will run the risk of unwanted tax liabilities.

“What is the Difference Between a Last Will and Testament

and  a Revocable Living Trust?”

1. Where are the assets located?  All with one institution or several?

2.  How much time does the appointed Executor or Administrator have to dedicated to collecting the assets?  His or her time may be limited due to his or her own personal responsibilities.

3.  Do we need to locate beneficiaries or heirs?

4.  How quickly does the financial institution provide the information requested?

5.  What is the size of the estate?

6.  The requirements pertaining to filing deadlines, notice requirements, etc. of the Probate Court are always factors to consider as well.

If your goal is to avoiding Probate, have a  smoother and quicker transition of assets then an alternate planning option for you to consider is a  Revocable Living Trust.

Whether you need a Last Will and Testament or a Revocable Living Trust depends on your circumstances

and your personal situation.

If a husband and wife own a house together in North Carolina, they are said to own it as tenants by the entireties.  This means, that at the death of the first spouse (we will say for example purposes that it is the husband that dies first) she owns the home automatically.  The wife is said to have rights of survivorship.  If the wife continues to leave the home in her name alone, at her death, the house will have to be probated and will pass by way of a Last Will and Testament, (if she has no Last Will and Testament it will pass by intestacy laws and North Carolina gets to decide who receives that property.)

If, on the other other hand, the home was placed into a Revocable Living Trust, we look to the Trust to tell us who receives the home when the wife passes away. There is no need to have a probate because the home was not owned by an individual but owned by the Revocable Living Trust.

The most important thing that I try to point out at each and every meeting I have with a potential client is that we never know when we are going to die.  The best way to estate plan is to plan on passing away tomorrow. I explained to her that if they both were to pass away at the same time, that not only would there not be a person already in place to care for their children (Guardian) but the children would not have access to the Life Insurance proceeds because they are not 18 yet.

She was not thinking that her children would need the money tomorrow because she was not thinking she would die tomorrow.  Both her and her husband commute every day for work; anything can happen. She also did not know that there needs to be a guardian in place in order for the proceeds to be able to be used towards the care of her children during the time her children needed it the most.

Needless to say, after she heard my explanation as to the importance of planning as soon as possible when you have minor children especially, she scheduled an appointment immediately.

Sometimes the fear of the unknown is all it takes to put it all into perspective and to see the value of having an Estate Plan today.