Transcript Basic Estate Planning Package

THE LAW CORNER
Basics of Estate Planning
Intestate Succession
Spouses Share

No child or lineal descendant or
parent


entire estate both real and personal property
No lineal descendant but parent
survives

½ interest in real property, first $50,000 plus
½ balance of personal property
Intestate Succession
 One

child or lineal descendant
Spouse takes ½ interest in real property, first
$30,000 plus ½ balance of personal property
 More
than one child or lineal
descendant

Spouse takes 1/3 interest in real property, first
$30,000 plus 1/3 balance of personal property
Intestate Succession
Share of Others
 Decedent's lineal descendants
Per capita at each generation
 B takes 1/3; D, E, and F take 2/9

Decedent
A
D
W
B
C
E
F
Intestate Succession
To
parents if no child or grandchild
W
takes ½ interest in real property, plus the
first $50,000 of personal property and ½ any
excess. The balance goes to M.
F
M
Decedent
W
Basic Estate Planning
Basic Estate Planning Package:
1. North Carolina Will & Testamentary
Trust OR Revocable Trust/Pour-Over
Will
2. Living Will
3. Financial Power of Attorney
4. Health Care Power of Attorney
THE LIVING WILL
Do you want life-sustaining treatments
or procedures administered to you if
you are in a terminal and incurable
condition or a persistent vegetative
state?
 It is called a "living will" because it
takes effect while you are still living.

THE LIVING WILL
A North Carolina living will goes into
effect when:
1) your doctor has a copy of it,
2) your doctor has decided that you are no
longer able to make your own health
decisions, and
3) your doctor and another doctor have
determined that you are in a terminal and
incurable condition or a persistent vegetative
state.

THE LIVING WILL
Defining “life-sustaining treatments
or procedures”
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These are treatments or procedures that are
not expected to cure your terminal condition
or make you better.
They only prolong dying.
Examples are mechanical respirators, which
help you breathe, kidney dialysis, which
clears your body of wastes, and
cardiopulmonary resuscitation (CPR), which
restores your heartbeat.
THE LIVING WILL
Defining “terminal and
incurable condition”
 A terminal and incurable condition is
defined as a condition for which the
administration of medical treatment will
only prolong the dying process, and
without administration of these
treatments or procedures, death will
occur in a relatively short period of
time.
THE LIVING WILL
Defining “persistent vegetative state”

A persistent vegetative state means
that a patient is in a permanent coma
or state of unconsciousness caused by
illness, injury or disease. The patient is
totally unaware of himself, his
surroundings and environment and to a
reasonable degree of medical certainty,
there can be no recovery.
POWER OF ATTORNEY
What is a Power of Attorney?
 Gives one person the full power and
authority to represent another person.
 Principal, Agent (attorney-in-fact) and
fiduciary duties.
 Must be signed by both the agent and
the principal, be witnessed by two
people and signed in the presence of a
Notary Public.
POWER OF ATTORNEY
Two kinds of Power
A General Power of Attorney covers all
of your legal, financial and personal
decisions except those pertaining to
your medical care and treatment.
 A Limited Power of Attorney only
covers decision-making in areas that
you specify.

POWER OF ATTORNEY
When do they become effective?
Immediately.
 A Durable Power of Attorney-even in
the event you become mentally unable
to make decisions on your own
(incompetent).
 A Springing Power of Attorney-only in
the event you become incompetent.

HEALTH CARE POA

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Gives broad powers to make health care
decisions, including mental health treatment
decisions, for you.
This power includes the power to authorize
routine medical tests, scans or surgery,
admit you to a facility and administer
medications.
This power exists only when you are unable
to give informed consent and will allow
timely permission and consent so proper care
can be received.
HEALTH CARE POA
It may be activated if a person is
temporarily unconscious, confused or
unable to communicate medical
desires.
 Must be mentally competent and of
sound mind when signing.
 Utmost confidence in your designated
person.

NORTH CAROLINA WILL
The Benefits of a Will
 You chose the executor, preferably
two.
 You dictate funeral arrangements.
 You provide general and specific gifts.
 You make plans that benefit you, your
family and the organizations and
causes in which you care deeply.
NORTH CAROLINA WILL
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The Benefits of a Will…continued
You can reduce or even eliminate estate
taxes and save taxes in a survivor's estate.
You can also create trusts to provide for your
spouse, your children and other loved ones.
You name a guardian (caretaker) for your
children and a trustee (who distributes assets
for children until they are mature and
capable of making their own financial
choices).
MORE ABOUT WILLS
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HOW TO REVOKE
Subsequent instrument
Physical act, i.e. burn, tear, destroy
Operation of Law-Divorce or
annulment; changes only provisions
for spouse.
HOW TO CHANGE
Codicils
Same formalities
THANK YOU!
The Law Corner
Brian S. Demidovich
211 E. Six Forks Road
Suite 209
Raleigh, North Carolina 27609
Tel: (919) 424-8319
Fax: (919) 424-8320
Web: www.thelawcorner.com
E-mail: [email protected]