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.

Below is a list of the 10 most popular questions I have received from clients.

1. How do you qualify as an Executor?

2. Can you decline your right to qualify as an Executor if you were appointed?

3. Who cannot qualify even if you have been appointed as an Executor?

4. What happens if the named Executor dies or if the appointed Executor dies?

5. What is the time frame to apply to become appointed as the Executor?

6. Where does a potential executor apply for the appointment? What County? What office?

7. What does the potential executor have to include in the initial Application to the Clerk?

8. What are the filing fees to obtain the appointment?

9. Does the Executor have to notify the potential beneficiaries or does the Clerk?

10. How long is the Executor’s appointed for?

It is always best to consult with an attorney whether you are ready to create your Estate Plan or if you have been appointed. It is pointless to appoint someone that may not be permitted to act or may not want to act for various reasons. It is better to be aware of it now so that there are little to no appointment issues later.

My parents have always raised us with their traditional values and beliefs.  I have been blessed with healthy parents whom are still with me and able to enjoy my daughter and pass along the same traditions to her.

Typically when people think about estate planning they think about the basics: who gets what and how much.  When clients leave my office they know differently.  It is about more than money and “things”.  It is about making certain that your children are continued to be raised with values, traditions and beliefs that, as parents, you want to see they are continued to be exposed to. It is about encouraging your children to succeed and continue to be exposed to religious education and family values.

We are not your typical estate planning law firm.  We work with our clients to determine how to pass along values and traditions by discussing options; what will work best for their family.  We explore guardian options and what specific concerns they may have.

As part of the plan, our clients are provided with a Guardian Letter.  This is a letter from the natural parents to the guardian where the natural parent can express their feelings on how they would like their child raised.  They can express their desire that they attend a certain church because maybe it has been a big part of their lives.  In addition they can express their values regarding volunteering or learning to save or education.  Leaving the guardian with guidance in their own words is invaluable not only to the guardian, but to the children.  It is  leaving a little piece of the past for the future.

According to the North Carolina Court System Website:

“A will is a written document in which you direct who is to receive your property upon your death. If you have any real property (land) or personal property (cars, jewelry, money) that you want to give to a specific person you must have a will. Otherwise, the property will pass to persons in accordance with the Intestate Succession Laws.”

Which then begs the question, what are Intestate Succession Laws?

Again, the North Carolina Court System offers a definition:

“These laws set forth how property is to be distributed when someone dies without a will. Generally, the property will pass to your surviving spouse and children, but not in equal shares.”

So why have a will? If upon your death, you want to give your real property or personal property to a specific individual, or individuals, then you need a will. Otherwise, the Intestate Succession Laws will dictate how your property is distributed upon your death.

You might think that you can write your own will, or use a “do-it-yourself” will form to assist you in writing your own will. Typically, this is a bad idea.

Now you might be thinking, “But you’re an estate planning attorney, of course you think writing my own will is a bad idea. You want my money!”

Well, don’t take my word for it. Take the recommendation of the North Carolina Courts:

“You should contact a lawyer for assistance in making a will, to ensure that it is properly drafted and correctly signed and witnessed. If a will is not prepared as required by law, it may be deemed invalid. An invalid will is useless, and your property will pass to your heirs by Intestate Succession.”

While drafting documents is important and necessary, building lifetime relationships with my clients is just as important. Submit your request for a free North Carolina estate planning phone consultation. I would be happy to discuss with you the best way to ensure that your property passes according to your wishes.

Assets that are included in determining the value of your Estate may surprise you.  Your gross estate for Federal estate tax purposes is a broad concept.  It is not limited to probate property or by state tax exemptions.  It includes all your property of every kind and nature, tangible and intangible, however acquired or owned, whether inside or outside the country.   Ultimately, the first step in Estate Planning is taking an inventory of everything you own, such as:

1.  cash, checking and savings accounts, CDs and money market funds;

2.  stocks, bonds, mutual funds;

3.  life insurance, employee benefits and annuities;

4.  your home (regardless of homestead exemptions) and any other real estate, land and buildings,

furniture and fixtures;

5.  business interests such as proprietorships, partnerships, limited liability companies, close corporations

and farm interests;

6.  notes, accounts and claims receivable;

7.  interests in Trusts and powers of appointment;

8.  antiques, art work, collections, cars, boats, planes and personal effects

Most people do not have to be concerned with Federal Estate Taxes because most people do not have estates large enough to be subject to those taxes.  The current Federal Estate tax exemption in 2009 is $3,500,000.  But, if your networth (basically the value of the assets above minus any debt) exceeds $3,500,000, or may in the near future then estate taxes should be factored into your plans.

If you conduct the majority of your business in another state, and the majority of your assets are in another state that is where the primary probate of your estate will be.  If you have any property in North Carolina, you can do what is called an Ancillary Estate.