Charlotte Estate Planning Blog

Family dynamics can complicate the process of estate planning in North Carolina and around the country. According to a survey from Key Private Bank, 77 percent of respondents said that this was the toughest issue for their clients to overcome. Those who took part in the survey had clients with at least $2 million in assets. While emotions can be hard to account for in an estate plan, 43 percent of respondents said that it was worse to not have a plan at all.

According to the advisers in the survey, people generally don't think about their estate plan or understand that anyone can benefit from it. Respondents said that even clients who are in their 30's should think about estate planning. Furthermore, many don't understand that they could need more than just a will to properly distribute their assets.

Some Charlotte residents may not immediately recognize why they need an estate plan. While marriage and children prompt many to consider the future of their assets and how to distribute them, younger or single people may not see the need for a will, trusts or other estate documents. This is especially true for people who are not particularly wealthy. However, there are a number of reasons why people of all backgrounds may want to consider an estate plan to benefit themselves and those they love.

In the first place, making an estate plan isn't only about dividing a person's belongings after death. Powers of attorney are critical documents to have in place in case of an unexpected incapacity that could take place after an accident or other emergency. Legal and financial powers of attorney can name a trusted individual to manage business matters or even just pay the bills while a person is unable to do so. In addition, an advance directive or living will can specify the kind of actions to be taken in case of incapacity as well as naming a health care proxy to make critical decisions at that difficult time.

People in North Carolina should strongly consider developing an estate plan, even if they do not have any children or close relatives. An estate plan can be very useful in helping people to manage their assets and prepare for the unexpected events that may occur in their life.

All adults should have an estate plan that includes a durable power of attorney for financial and legal decisions and an advance directive for medical care. With these documents, people can designate someone they trust to make important medical, legal and financial decisions on their behalf if they should become incapacitated. If these documents are not completed, there will be certain decisions that even the spouse of an incapacitated person will not have the legal authority to make. An absence of these documents also means that the courts will have to conduct a guardianship or conservatorship to have someone appointed to be in charge of such decisions, and it is not guaranteed that the court-appointed person will be someone who the incapacitated person would know or would approve of.

Everyone currently living in North Carolina and everywhere else in America will die one day. Therefore, it is worth taking time now to plan for what happens to everything left behind when that happens. Basic estate plan tactics include creating a will and designating an executor. An executor can be a friend, family member or any other trusted person, and it is possible to have more than one executive.

Parents can name guardians for their children and provide money and other resources for them through such a document. For some, a will won't be enough to meet their needs. Therefore, it can be a good idea to consider creating a trust. Before creating the trust, it is a good idea to make a list of all assets a person could have including checking accounts or employer retirement accounts. Trusts can be ideal for those who feel as if a will may be challenged.