Estate Planning in NC: Secure Your Estate in 10 Easy Steps

Estate planning may seem overwhelming and something that can wait another day. However, it is one of the most important steps you can take to protect your loved ones in the event you pass away or become incapacitated. Going through the estate planning process ensures that your wishes are honored and your financial affairs are settled in the event of your death. This can prevent unnecessary stress and financial strain on your loved ones.

To help you get started, our Raleigh estate planning attorneys from Kirk, Kirk, Howell, Cutler, & Thomas are sharing 10 essential tips we offer our estate planning clients in North Carolina.

What is Estate Planning?

Estate planning is the process of organizing and preparing for the management and distribution of your assets in the event of your death or incapacity. It involves creating legal documents, such as a will, trust, and powers of attorney, to ensure your wishes are carried out and that your loved ones are provided for.

Effective estate planning helps minimize estate taxes, avoids lengthy probate proceedings, and can protect your assets from potential creditors. By planning ahead, you ensure that your financial, medical, and personal decisions are handled according to your preferences, providing peace of mind for you and your family.

Why is Estate Planning Important?

Estate Planning Checklist

Having an estate planning checklist helps guide you through the necessary steps to ensure your assets are distributed according to your wishes. By following this checklist provided by our estate counsel professionals, you can protect your loved ones and avoid complications after your passing.

1. Inventory Your Estate’s Assets

Begin by taking an inventory of all your tangible and intangible assets. Tangible assets include physical property, whereas intangible assets are non-physical items. By identifying and valuing these assets, you’ll gain a clearer picture of your estate’s total worth and can make more informed decisions about how to transfer assets to beneficiaries.

2. Draft a Last Will and Testament

Once you’ve inventoried your assets, it’s time to draft your Last Will and Testament, which is a legal document that outlines how you want your estate to be handled after your passing. This will be the foundation of your estate plan and provides clear instructions for your loved ones to follow.

Executor

Name a trusted individual as your executor, who will be responsible for paying federal estate taxes, settling debts, managing your property, and distributing assets according to your wishes. The executor will also be tasked with navigating the probate process and dealing with the probate judge if issues arise.

Heirs

Clearly designate your heirs—those who will receive your assets, property, and other belongings. Be specific about who gets what to avoid confusion or disputes among family members. This can include everything from your home and bank accounts to sentimental items like jewelry and family heirlooms.

Guardianship

If you have minor children, it’s crucial to name a guardian who will care for them in your absence. This person will be responsible for their upbringing, healthcare, and education. It’s important to discuss your decision with the chosen guardian in advance to ensure they are willing and prepared for the responsibility.

3. Designate Beneficiaries for Non-Probate Assets

Certain assets, such as insurance policies, pensions, and retirement accounts, are not included in a will. Instead, you will have to make beneficiary designations for these accounts when you set them up.

Ensure your primary beneficiary listed on your accounts are up to date and reflect your current wishes, as they will act as the personal representative to your estate in the event of your death or incapacitation. This avoids complications such as leaving money to an ex-spouse vs current spouse or someone who may have already passed vs living family members.

4. Create a Living Will

A living will outlines your medical care preferences if you become incapacitated and unable to communicate. It specifies treatments you do or do not want, such as life support or resuscitation, in certain conditions. Along with a living will, you can appoint a medical power of attorney—a trusted person who has health care power to make decisions for you when you’re unable to do so.

These documents ensure your wishes are followed and ease the burden on your loved ones during difficult times.

5. Organize Financial and Insurance Documents

Gather and organize all your important financial and insurance documents, including:

You can also designate a financial power of attorney, a trusted individual who can make financial decisions on your behalf if you become incapacitated.

6. Proof of Identity Documents

Keep your identity documents, such as your Social Security card, birth certificate, marriage certificate, and other legal documents, in an easily accessible location. This will help your heirs settle your estate more efficiently.

7. Name a Digital Executor

With so much of our data and information stored online, it’s important to name someone you trust as a digital executor. This individual will manage your digital assets after your passing.

These assets can include:

8. Plan for Ancillary Estates if You Own Property in Other States

If you own property outside of North Carolina, your estate may need to go through an ancillary probate process in the state where the property is located. Ancillary probate is necessary when a person passes away in one state but owns property in another. For example, if you live in North Carolina but own a vacation home in Florida, your heirs may need to handle the property through Florida’s probate court system in addition to North Carolina’s.

The ancillary probate process can be complicated, as it requires the appointment of an executor in the state where the property is located. This adds an extra layer of complexity to the estate administration process. It’s crucial to consult with an estate planning attorney who can guide you through the intricacies of handling out-of-state property and determine whether a revocable trust could help avoid the need for ancillary probate altogether.

9. Consider Establishing a Trust

A revocable living trust is a legal document that allows you to place your assets in a trust during your lifetime. Upon your death, the assets in the trust pass directly to your beneficiaries without going through probate. This can save time and legal costs, and it also keeps the distribution of your estate private. A trust can also help with the management of assets for beneficiaries who may be minors or have special needs.

10. Review Your Estate Plan Regularly

Estate planning isn’t a one-time task. As your life circumstances change, your estate plan should evolve to reflect your current wishes and financial goals. Review your plan regularly, especially after major life events such as marriage, divorce, the birth of a child, or the acquisition of significant assets.

Schedule a Consultation with an Estate Planning Lawyer Today

We understand that estate planning is difficult, and you want to provide a seamless, simple transition to care for your family after you’re gone. Consult with an experienced Raleigh attorney who can help you draft your will, set up revocable trusts, and protect your assets on behalf of your loved ones.

To set up a consultation, call us at (919) 615-2473 for our Raleigh office or (919) 365-6000 to reach our Wendell office, or fill out the contact form below.