We encourage our clients and contacts to be certain that they take the time to consider the future, and properly prepare by procuring an effective estate plan. Brian Hayes is our resident Estate planning specialist. Estate planning involves many variables. Estate plans can be focused on the small estate, for which the goal is simply to control and specify the division of property between ones family and friends; and the multi-million dollar estate, in which the goal is to avoid paying excessive amounts of federal estate taxes. Some of the documents involved in any estate plan include the Last Will and Testament; Trusts and various trust provisions; Powers of Attorney; Living Wills; and a Healthcare Power of Attorney. All of these documents are important tools. Some of the documents involved in estate planning are described here.

LAST WILL AND TESTAMENT

The most common, and most familiar document to most people is the Last Will and Testament or Will. The Will is simply a document which describes one's desire for distributing property after death. The Will is presented to the Clerk of Superior Court during the process of an estate administration and thereafter used to control the distribution of property through a series of devises made in the Will.

There is a common misconception that the failure to have a Will leads to the escheat-the states taking-of one's property. This is rarely the case. However, without a will, the administration of an estate becomes more difficult and the property will be distributed according to the rules set out by the legislature which do not take into consideration the desires of the deceased, or the needs of the surviving spouse and family.

Wills are often the simplest and most complete way to dispose of assets, including real and personal property as well as account funds and other assets. A Last Will and Testament is the first step in producing an estate plan, and is a document which no one should be without. If you presently do not have a Last Will and Testament, or if you are uncertain as to whether your present Will reflects your present and true intentions for devising your estate property, you should contact an attorney.

TRUST DOCUMENTS

Trusts can provide a great deal of flexibility in gifting and controlling different types of property. Inter Vivos or "Living" Trusts can be established to function during the life of the trustor, and continue even after his or her passing. These trusts can hold property in many configurations, with many effects and benefits to the trustor. Living Trusts can be revocable or irrevocable depending on the particular needs of the trustor.

POWER OF ATTORNEY DOCUMENTS

A power of attorney is a document that allows you to appoint a person or organization to handle your affairs while you're unavailable or unable to do so. The person or organization you appoint is referred to as an "Attorney-in-Fact" or "Agent." Giving someone your Power of Attorney is a very serious decision and should not be taken lightly. You need to choose someone who won't abuse the powers you grant to them and will look out for your best interests.

A general power of attorney is frequently included as part of an estate plan to make sure that you have covered the possibility that you might need someone to handle your financial affairs if you are unable to do so.

Power of Attorney documents can be drawn in numerous ways to control or limit their effectiveness to suit the intent of the principal. Through careful drafting they may be made effective for limited periods of time or made effective only after the occurrence of certain events. In addition to the time and nature of effectiveness, North Carolina Statutes set out numerous powers which can be limited or expanded through the terms of the Power of Attorney document.

LIVING WILLS

Living wills provide one's personal physician or other healthcare provider instructions and authority to carry out one's wishes regarding what life sustaining procedures, are or are not, to be utilized should one's condition become terminal or incurable or should one be placed in a comatose state.

HEALTHCARE POWERS OF ATTORNEY

Healthcare Powers of Attorney permit the individual to choose who is to make health care decisions for them in the case of their incapacity or mental incompetence. The terms of the Healthcare Power of Attorney can be modified to suit the desires of the principal, but the central factor is the ability to designate the person that will make healthcare decisions during a most difficult period in ones life. We cannot foresee what events will affect us in the future. By implementing instruments such as Healthcare Powers of Attorney we can help control the consequences.