As a wills lawyer in Cary, it is always gratifying to see clients who are both able and willing to use their assets to support their favorite cause or charity through a will or trust.  Even small gifts can have a large impact, and many people are taking this into consideration during their estate planning these days.  Working with a reputable wills lawyer in Cary can help you ensure that you are meeting the necessary requirements so that your gift, no matter the size, will have the most impact.

There are countless reasons to designate a charity when planning your will.  In many cases, the individual simply wants to use some of his or her estate to further a cause that is near and dear to his or her heart.  This can come in the form of a financial contribution, the transfer of real estate, or even the donation of personal items that will further the charity’s mission.

From a more pragmatic point of view, some people choose this route in part because of the tax-exempt status of most nonprofit organizations.  They know that their gift will not be subjected to “death taxes” or other laws that would decrease the overall value of what they have to give.  What we have created or earned during life is a significant source of pride, and many people derive more satisfaction from knowing that it will pass fully to their charity of choice.

Some of the most common ways to remember a charity in your will include:

• A specific sum of money
• A certain class of property, such as stocks
• A specific asset such as an automobile
• A percentage of the “residue” after other items have been distributed to beneficiaries
• The remainder after debts, expenses, and bequests have been made
• A contingent bequest (if a beneficiary does not survive you, his or her portion would go to the charity)

There are specific rules and regulations that must be followed to guarantee that your gift will make it smoothly into the hands of the intended recipient.  For example, it is helpful, if not necessary, to identify the organization by its full legal name.  There is also some typical wording that can help make your wishes clear and easy to follow, as well.  Again, an experienced wills lawyer will be able to guide and direct you in the process.

By Jackie Bedard, Carolina Family Estate Planning, Cary, NC

Trusts lawyers are seeing a growing number of online websites offering Do-It-Yourself legal documents and estate-planning software.

Surprisingly, most attorneys will tell you that there are some everyday forms where this approach makes good sense. In fact, many law firms offer a selection of standard legal forms available for their clients’ use at no charge. However, when it comes to wills and trusts, a poorly executed document can cause more harm than doing nothing at all.

It’s important to realize that estate planning is a complex area of law, based on statutes that vary state by state and often change from one year to the next. Wills in this state have procedures and requirements that must be followed, and a wills lawyer in North Carolina knows what those stipulations are.

For example, all states require your will to be signed in the presence of at least two witnesses and they must sign in your presence and in the presence of each other. Something as seemingly trivial as improper witnessing procedure can result in the whole document being deemed null and void.

Wills and trusts aren’t merely about the distribution of the deceased’s funds either.  Children are the most valuable “asset” of an estate, yet a recent survey found that nearly 3 out of 4 couples with minor children had made no provisions for legal guardianship of their children should an event claim both parents’ lives at the same time. This may be an unusual circumstance, but it is by no means a rare one.  An experienced wills and trusts lawyer will prepare the proper documentation needed to insure the wishes of the parents are carried out that your DIY estate plan may miss.

Another danger inherent in DIY wills is that they give a person a false sense of security. An individual may think that his or her affairs are all in order when, in actuality, something of importance may have been left out or an area of the form filled out improperly. Remember, there is no one-size-fits-all document that covers every situation. Online document mills are prohibited by law from dispensing legal advice, therefore they can not advise you of the forms you really need to protect your family and assets, nor will they represent you in court should it become necessary.

Sadly, DIY wills and trusts that are intended to save a few bucks can easily result in estate losses of tens of thousands of dollars.  If you have a DIY will or trust, the most important thing you should do is have it reviewed by an experienced Cary wills and trusts attorney.  Here at Carolina Family Estate Planning, we will review your current estate planning documents so you can have the peace of mind knowing your family will be protected if the unthinkable happens.

Just call 919-443-3035 and ask about our Upcoming Workshops.

By Jackie Bedard, Carolina Family Estate Planning, Cary, NC

As an estate planning attorney in Cary, I commonly see people who understand the importance of the initial estate planning but then forget that they need to keep their wills and trusts up-to-date. These documents aren’t something that should just be done once and then tucked into a drawer never to be looked at again. Actually, there are several times during the course of your life that you need to dig out your wills and trusts and make changes.

• Marriage – Obviously, when you get married, you will have a new spouse to consider when it comes to things like inheritance, living wills, and powers of attorney.
• Divorce – If you don’t relish the thought of your ex receiving your estate, you may want to meet up with your estate planning attorney to make some changes.
• Children – The addition of a child should trigger a need to reevaluate your will and other documents. Estate planning is often thought of as a way to care for your children after your death, and that can only be done if you keep your documents current with the birth of each child. Similarly, as your children get older, you should consider whether you need to update any of the provisions you made for them in your original plan.
• Purchases – If you acquire new assets, whether in the form of real estate or something else of value, you will want to call your estate planning attorney to be sure it is covered in your will.
• Health – You may find that certain health conditions cause you to reconsider the wishes outlined in your living will. This ensures that your loved ones and healthcare providers are apprised of your decisions.
• Insurance – Over the course of your insurance policy’s life, you may find that you want to change the terms, such as the type of coverage you have or the beneficiaries of your policy. When changes like this occur, it is important to have an estate planning attorney reflect that in your legal documents.
• Your “Helpers” — You are not the only one that will experience changes in your life–your “helpers” (i.e., your executors, trustees, agents, etc.) will also experience life changes. Review your list of various helpers and consider whether your list needs updating.
• Moving — If you move within state, consider whether you need to update any of your emergency helpers, such as emergency guardians if you have minor children. If you move to a different state, have you your plan reviewed by an attorney in your new state of residence to determine whether any changes need to be made to accommodate differences in state law.
• Opening New Accounts — Any time you open a new account, it’s important to make sure that accounts are titled properly and beneficiary designation forms are properly completed.  Over time your accounts may change–you change banks, take out more insurance, or open new retirement accounts after a job change.  It’s important to make sure that these new accounts fit in properly with the rest of your planning.

An estate planning attorney will be current on federal, state, county, and city laws and will be able to guide you as you keep your wills and trusts up-to-date. This protects you and your beneficiaries and can actually keep your will from being invalidated after your death.

So if it’s been awhile since you’ve updated your estate plan, I invite you to give our office a call and schedule a complimentary Peace of Mind Planning Session to have your documents reviewed ($750 value). Simply call 919-443-3035 to get started. We are only able to offer a limited number of these sessions each month, so be sure to call today to reserve your spot!

When it comes to protecting your rights as a member of the aging LGBT community, you should consider consulting an estate planning lawyer who can help you make the right choices.  We hear horror stories of life-long partners who are denied access to one another, who lose their homes, or who don’t have access to inheritances upon the death of their spouse or significant other.  Planning in advance can help minimize the chances for these injustices.

There are different ways to protect your partner upon your death.

• Domestic Partnership – As the states go through the rigmarole of determining what does and does not constitute a marriage, there are still some designations that can protect your assets.  In some cases, this is the domestic partnership.  This type of legal declaration can provide the ability to inherit and to make medical decisions.  With the stringency of HIPAA regulations, the designation of “spouse” can be a very important one.
• Power of Attorney – A Cary estate planning lawyer who is familiar with LGBT concerns will likely advise you to go beyond the domestic partnership and also put powers of attorney in place.  These provide even more legal recourse that allows one partner to be responsible for the other in emergencies.  There are both health powers of attorney and financial powers of attorney, and both may be necessary for full protection.
• Wills – In order to circumvent the negative repercussions of a family that is unwilling to deal fairly with a surviving partner, a last will and testament can be an important legal document.  It can also help speed up the probate process and help ensure that your affairs are dealt with in a timely manner. For even greater privacy and protection, you may also want to establish a living trust.
• Beneficiaries – When setting up a bank account or insurance policy, be sure to clearly name your partner as beneficiary.  Otherwise, biological family members (or even previous legal spouses) may have rights to the money, leaving your partner out in the cold.

Of course, these are just some of the situations that may need particular attention from members of the LGBT community.  There are many, many concerns that need to be considered by all members of the aging generation.  Consulting a Cary estate planning lawyer is likely the most efficient and intelligent way to deal with all of these issues.

Ready to get started?  Call our office a call at (919)443-3035 and request a Peace of Mind Planning Session.

By Jackie Bedard, Carolina Family Estate Planning

Whether you live in Cary, North Carolina or Twodot, Montana, the need for estate planning is the same.  Sure, there are some laws that vary a bit from state to state.  Americans in general, though, need to prepare their estates in order to protect both their assets and those they wish to receive them.

If it mirrors the national average, then only about 35% of Cary residents have estate plans.  That means that 65% of Americans have not yet prepared for what will happen to their assets when they die.  These assets might include cash, stocks, bonds, real estate, insurance policies, and even personal items and heirlooms.  Without proper estate planning, none of those things are well protected.

The first step in estate planning is to make a list of your assets.  This can then be used to create a last will and testament.  It’s generally best to meet with an estate planning attorney, especially if minor children are involved.  In addition to figuring out who gets what item, this attorney can help you set up trusts and guardianships for those children.

Whether you have young children, adult children, or none at all, it is also important to create a health care power of attorney.  This document allows you to make choices about your medical care should you be unable to explain them yourself due to illness or injury.  This explains to doctors the proper course of action to take, according to your wishes, even though you are unable to discuss it with them at the time of treatment.

Estate planning for Cary residents should consider this vital information, including a power of attorney that officially transfers your legal and financial decision-making authority to the person of your choice when needed.

Finally, it will be necessary to name someone as the executor of your will.  When you pass away, this person will handle the administration of your last will and testament, as per your instructions.  When conducting estate planning for Cary residents, a qualified estate lawyer will ensure that this executor is given the appropriate legal authority.  In some cases, the attorney may actually be the appointed executor.

By Jackie Bedard, Carolina Family Estate Planning

As an estate planning attorney, I work with parents all the time to make sure their minor children will be protected if the death or incapacity of one or both parents should occur.

One of the ways we do this is to name short-and long-term guardians, who are essentially the people with legal permission to take custody of your children if tragedy strikes.

Yet in my work as an estate planning attorney, I can honestly say that making a guardianship nomination legal is the easy part!  It’s choosing the actual people you feel comfortable with to provide your kids long-term care which is the hardest decision for most parents.

Not to mention the complications (and stress) that can arise when it becomes clear that the kids would fare better if left in the care of different guardians (and yes, perhaps even be separated from one another) if the death of one or both parents occurred.

Of course this is a decision that’s not to be taken lightly, but legally, there is nothing stopping you from leaving your children to the care of different people if it seems necessary for their future well-being.

If in your conversation with an estate planning attorney you feel such a move is necessary, I urge you to make your wishes known and don’t feel bad or even guilty about your decision. Sometimes it’s clearly for the best.

Not sure when this would be an appropriate choice for your family? Let me give you an example as to when the decision to name separate guardians would come into play.

Let’s say you are a mother of 3 children.  You have two girls from your first marriage and your third child, a boy, is from the 2^nd. If something unexpectedly happened to you, the law dictates that your youngest son would be placed in the care of his father, provided he is still living.

Yet you know that living with your current husband would not be the best arrangement for the girls.  The girls have never been close to your new husband and you can’t imagine the situation getting any better if you were gone.  Worst of all, the girls have no relationship with their biological father.  In fact, he signed over his rights in lieu of paying child support years ago.    So in your mind, leaving the children to him is not an option either.

Based on this scenario, you decide to make your sister the guardian of the girls, while your husband would continue to raise your son if something happens.

Of course that’s just one of MANY examples in which the decision to appoint separate guardians for your children comes into play.  As I tell parents all the time, YOU and only you know what is best for the physical and emotional well-being of your children in a time of need.   While the ideal situation is to leave the kids together if possible, family dynamics or life circumstances may dictate that alternative plans be made.

Fortunately, that’s the beauty of estate planning.  It gently forces you to think about such situations in advance so your children are given the best chance to thrive if something unexpectedly happens to you.  You can then document your wishes so there is no question as to who you want to care for your children in your absence.

Haven’t made plans yet to legally appoint someone to care for your minor children if something happens to you?

Then give us a call at 919-443-3035 and request a Peace of Mind Planning Session. These sessions are normally $750, but you can come in free with the mention of this article.  However, these appointments are limited to 8 per month so call today!

By Jackie Bedard, Carolina Family Estate Planning

As an estate planning attorney, I know Generation Y has a lot to think about…starting their careers, buying their first home, starting a family.  All of these things are beginnings, so it’s a rare day when someone in this generation wants to think about The End.  But there are 4 reasons that they might need to…

A lot of people think that youth is an excuse for putting off doing a will or trust.  But estate planning is not just about planning for your death.  It is also prepares you 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, should you have the misfortune of needing it, you and your family will be thankful.  Consider these four scenarios…

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

Unfortunately tragedies happen every day.  And you are not immune to them because you are young.  If something happens to you and you are no longer able to make decisions regarding your own financial, legal, and medical affairs you’ll need to make sure that there are basic documents in place such as a health care power of attorney, financial power of attorney and HIPAA authorization so someone can make decisions on your behalf.

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 accounts offered through your employer. You need to make sure that beneficiaries are named in the right way to make sure that the people you want to leave them to get maximum benefit.

You need to name guardians for your children.

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 who doesn’t know you or your child.

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 deciding if you need a will or trust.  I encourage you to talk with a wills and trusts lawyer.  Only then will you have the peace of mind of knowing that you are fully protected.

I’m not sure there are official statistics for this, but based on my experience as a Cary wills and trust lawyer, the number one reason people don’t do their estate plan is that they simply can’t face their own mortality.

In a way, we are like the groundhog…occasionally we stick our heads out of our warm, protected, cave of ignorance to think about what would happen to our family if something unexpectedly happens to us.  In regard to estate planning, are you the type of peek-out, see your shadow, and go back in to your safe and warm bunker and hide type of person?  Or do you step out and face the day and charge full steam ahead?

Interestingly enough, the tradition of the groundhog being afraid of seeing his shadow is a recent phenomenon.  The tradition started as a medieval superstition that all hibernating animals (not just the groundhog) came out of their caves and dens to check the weather in early February.  If the animal could see their shadow, it meant winter could go on for another 6 weeks which meant they could go back to sleep.  A cloudy day meant spring was just around the corner and they could venture out.  As you can see, shadow didn’t “scare” the animal back into the safety of their den.  It was simply an alarm clock of sorts!

So with that myth dispelled, I also want you to stop using the fear of your mortality as a reason for postponing doing your own will or trust.

Simply think of estate planning as a way to ensure that your legacy will go to the people you want, in the way you want, when you want.  It will also allow you to save your loved ones court costs, attorney’s fees and most importantly, will allow them to mourn your loss without the additional burden of dealing with government red tape, a chaotic court system and financial confusion.

So, as we see all the news and excitement surrounding Punxsutawney Phil this year, take a long look at yourself and see if you are ready to make sure your family is taken care of no matter what.  If your plans are sorely lacking, I invite you to give me, your neighborhood wills and trusts lawyer a call to discuss your options.

By simply mentioning this article, you can come in for a Peace of Mind Planning Session (normally $750) at no charge.  However, this offer is limited to 8 per month so call 919-443-3035 to reserve your space today.

By Jackie Bedard, Carolina Family Estate Planning

If one of your 2011 resolutions includes getting your financial and legal affairs in order should something unexpectedly happen to you, I have a gift I think you’ll enjoy.

To be specific, I just put the finishing touches on a free report I wrote entitled, “What You Don’t Know CAN Hurt Your Family: 5 Easy Ways to Make Sure Your Children, Wishes and Assets Stay Protected Should Something Happen to You”.

In this report you’ll learn 5 easy ways to get your legal and financial affairs in order.  You won’t even need the help of an attorney for some of these important steps; simply follow my instructions in the guide and cross each item off of your “to-do” list as you go.

You’ll also discover:

• How to legally name guardians for your minor children in a way that will hold up in a court of law
• The difference between a will and a trust, and which tool you really need to make sure your family, wishes and assets stay protected upon your passing.
• The details about a simple document you can use to give someone legal permission to act on your behalf if you were incapacitated in an accident but did not die (…and without this document, your family could be facing some hurdles under the current HIPAA privacy laws!)
• How to amass your “entire family wealth” and leave a true legacy to your children (hint: you don’t have to be wealthy and it’s easier than you think!)
• And so much more!

To grab a copy of this report, simply visit http://www.carolinafep.com/5waysrequest.html

I’d also like to encourage you to forward this to any of your family or friends who really need to get their affairs in order.  I would especially encourage you to reach out to anyone who has minor children, owns their own home, cares for aging parents or is approaching retirement age themselves.

By Jackie Bedard, Carolina Family Estate Planning

Perhaps you saw it on the news a few weeks ago that economists on Wall-Street declared the recession officially over.

I’m not sure how they came to such conclusions, but I look around and still see far too many friends and family struggling to recover from the chaos to really consider it over.   And while I acknowledge things may be improving on some fronts, I still find it hard to objectively look at a father who can’t find work or a mother who’s lost a huge chunk of her 401(k) plan and say our country is officially in the clear.

I’m equally saddened by the number of bankruptcies taking place right now.  For many families, bankruptcy is 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.

Let’s say, for example, that a family member passes away  and leaves you a cash gift in their 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 your creditors.

Hopefully your loved one had a Cary 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 an asset protection or spendthrift trust so that 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 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 fine, 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 wasn’t 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 office at 919-443-3035 to schedule a Peace of Mind Planning Session.  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 8 per month so call today!