Estate Planning – The Law Office of Crystal M. Richardson, PLLC

Estate Planning Law Firm Protecting Your Future

The Trusted Law Firm to Protect Individuals and Families in North Carolina

Do you have active and pressing concerns about what will happen to your assets after you’re gone? Or perhaps, are you are proactively looking for options so you can put a plan in place and safeguard the ones you love?

Uncertainty and complexity often surround estate planning, leaving many individuals and families in a state of agitation, overwhelm, and frustration. At the Law Office of Crystal M. Richardson, PLLC, we understand the emotional and practical challenges that come with estate planning. Our experienced firm is here to provide clarity and peace of mind through our comprehensive estate planning legal services.

We believe that estate planning should not be a near death experience and we encourage our clients to get their affairs in order before a crisis or unexpected event occurs. Our motto is “if you stay ready, you don’t have to get ready.”

Our office works with individuals and families with varying legal needs, to craft a finely-tailored estate plan that is consistent with your desires and wishes. We work collaboratively, keeping you in control, and giving you the voice of choice throughout the estate planning process. Estate planning affords you the opportunity to name your desired beneficiaries of your estate, rather than giving your inheritance to those closest to you in kinship – which could be someone you may not even know.

The goal is to protect your future while guiding you through the process and helping you avoid costly mistakes.

Let us help you develop a personalized estate plan, so that you do not get the government estate plan provided for you through the State’s Intestate Succession laws.

Estate planning becomes crutial when family members may not respect you or your choice of personal relationships. You will have the option to nominate a personal representative to execute decisions you set forth.

An estate plan not only addresses your finances, but also any joint ownership issues, and is a way to address your concerns about health care decisions and financial choices when you’re unable to speak for yourself.

At the Law Office of Crystal M. Richardson PLLC,
we can help you draft the following documents:

Last Will and Testament or Trust
Health Care Power of Attorney
General/Specific Power of Attorney
Living Will (also known as Advance Directive)
HIPPA release authorization

A comprehensive estate plan may also include:

Ownership transfers
Updating beneficiary designations for non-probate assets
Creating a family land trust or LLC

Why do I need an estate plan?

To place property in the hands of the person you desire to have it
To protect assets from poor management or waste
To protect your assets from transferring to your creditors rather than your loved ones
To avoid excessive taxation or probate fees
To reduce shrinkage in estate values attributable to probate
To provide a mechanism for use and management of assets

Practice Area

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Solutions for Individual and Family Estate Planning

WILLS

Last Will and Testament

In essence, a Last Will and Testament is a written document that describes how you want your property (assets, such as personal property, vehicles, home, business cash and money in bank accounts) devised after you die. The Last Will and Testament may also provide details such as your burial requests, who you would like to become the Executor of your estate after your death, as well as, other wishes you have for your estate after death. Chapter 31 of The North Carolina General Statutes outline the requirements for a will to be valid.

An attorney at the Law Office of Crystal M. Richardson, PLLC can help you understand these requirements and ensure that the provisions in your will match your desired wishes. If you were to pass away today without having drafted your will, the state of North Carolina will decide who will receive your property through the Intestate Succession laws. Be sure to properly document your wishes to ensure this does not happen. By drafting a will, you are better able to control who gets what when you die. You can avoid confusion and conflict by making your desired wishes clear and conspicuous for the individuals in your life.

Why do I need a Last Will and Testament?

To appoint a personal representative
To transfer assets to the intended beneficiaries
To recommend a guardian for minor children
To manage assets until intended beneficiary reaches a responsible age
To address probate issues, such as personal representative bond requirements, simultaneous death, and renunciation.

Advance Directive, also known as a Living Will

A Living Will, also known as an advance directive, is a legal document which details whether you want life-prolonging treatments by medical procedures in any of three circumstances:

You have an incurable or irreversible condition that will result in your death within a relatively short period of time
You become unconscious and your health care providers determine that, to a high degree of medical certainty, you will never regain consciousness, and/or
You suffer from advanced dementia or any other condition which results in substantial loss of your cognitive ability, and your health care providers determine that, to a high degree of medical certainty, the loss is not reversible. Additionally, a Living Will allows you to authorize or direct the withholding or discontinuation of life-prolonging measures, such as respiratory care, or artificial nutrition or hydration.

Many individuals wait until an advanced age to execute a living will document, however, at any moment in time, anyone could experience a life-altering, catastrophic accident, which could cause us to have to make these types of decisions. Don’t wait until it’s too late to document your wishes regarding the prolonging of your life. You may revoke a living will at any time that you are able to communicate health care decisions. You should carefully consider the implication of executing a living will, which documents instructions regarding specific types of treatment that is consistent with your religious beliefs or what you deem is unacceptable for any reason.

TRUSTS

What is a trust?

You may be asking yourself – Do I even need a trust? A trust is an instrument that creates a fiduciary relationship between a trustee (someone who holds property for the benefit of another) and its beneficiaries. It can be created for a variety of reasons, such as asset protection, Medicaid planning, charitable purposes, and so on.

The requirements to create a trust in the State of North Carolina are:

The Settlor must have capacity to create a trust (note that this differs from the “sound mind” requirement to create a will)
The Settlor must indicate the intention to create a trust
The trust must have a definite beneficiary (unless it is for a charitable purpose, care for a pet, or a non-charitable purpose, as provided in NCGS §36C-4-409
Trust must have duties to perform, and
The same person is not the sole trustee and the sole beneficiary

The person creating the trust is known as the “settlor” or the “grantor.” The trustee holds legal title to the property in the trust and manages the trust property for the benefit of beneficiaries. A beneficiary is one or more persons who have present or future interest in the trust property. The beneficiaries must be ascertainable either, now or in the future. The Only exception is charitable trusts. Where there is benefit to the public-at-large, so there is no ascertainable beneficiary.

It is important to note that in North Carolina, a trust cannot be created with a sole trustee that is also the sole beneficiary. There must be a second trustee or another beneficiary named in the trust instrument.

Additionally, for a trust to become valid, it must be funded with “trust property.” Funding a trust requires legal transfer of title of the property from the “settlor” to the “trustee.” This means that the settlor must have present ownership interest in the property to be transferred to the trust. When a trust is created, legal title to the trust property is vested in the trustee, while equitable title vests in the beneficiaries.

A trust may be “revocable” or “irrevocable” depending on the type of trust.

Revocable Trust – A revocable trust is an inter vivos trust (created during the settlor’s lifetime), in which the settlor retains the right to revoke or amend the trust without the consent of the trustee or a person holding an adverse interest. It is important to note that in North Carolina, unless stated otherwise, all trusts are presumed to be revocable.

Irrevocable Trust – An irrevocable trust is an inter vivos or testamentary trust (trust created by the testator’s will), in which the settlor or testator does not retain the right to revoke or amend the trust.

Depending on your purpose for the trust, such as tax planning or Medicaid planning purposes, a revocable or irrevocable trust may be created.

Under North Carolina Law, there are four methods to create a trust:

Transfer of property by a settlor to a person as trustee during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death.
Declaration by the owner of property that the owner holds identifiable property as trustee unless the transfer of title of that property is otherwise required by law.
Exercise of a power of appointment in favor of a trustee.
A court judgment, order or decree, including the establishment of a trust.

A (Few) Types of Trusts

Asset Protection Trust

Generally, this type of trust protects assets from exposure to future lawsuits, malpractice claims, bankruptcy claims, creditors’ claims, divorce or remarriage, nursing home expenses, etc.

Charitable Trust

As mentioned above, this type of trust is generally for charitable purposes, while allowing the settlor to take advantage of charitable tax deductions associated with gifts being made.

Education Trust

Generally, this type of trust is created by parents and grandparents for the benefit of their children to fund college education while receiving estate tax benefits.

Grantor Retained Annuity Trust (GRAT) / Grantor Retained Unitrust (GRUT)

Typically, this type of trust is used to remove the full value of the asset and its future appreciation from the Settlor’s taxable estate taxes upon death.

Individual Retirement Account (IRA) Trust

These trusts are created to protect retirement plan assets from lawsuits, creditors, or divorce. They are generally designated for retirement plans, such as, 401Ks, 403(b)s, and the like.

Pet trusts

These types of trusts are created so that there is specific, detailed instruction on how to provide fora pet, and to ensure sufficient funds are available to care for the pet without overburdening the future caretaker.

Lifetime Qualified Terminable Interest Property Trust (QTIP)

This type of trust is typically used for lifetime asset protection or tax planning purposes.

Irrevocable Life Insurance Trust (ILIT)

Generally, this type of trust is created to protect one’s life insurance proceeds from future lawsuits or creditors.

By forming a trust, it allows the Settlor to set rules and instructions about how they want their assets handled in the event that they become incapacitated or upon death. It can be a great tool to manage and protect your assets, minimize tax liabilities, and ensure that your wishes are carried out. The trust instrument outlines, in detail, your specific wishes and restrictions for managing your assets. It can be a complex process, but it can be extremely valuable in accomplishing your estate planning goals.

Power of Attorney

Power of Attorney – Healthcare

A Healthcare Power of Attorney is a legal document that allows an individual to choose who they want to designate as your health care agent to make decisions for you when you cannot make or communicate those decisions. The healthcare power of attorney can express your wishes regarding life-prolonging measures, mental health treatment, and any other health care decisions to the extent that you express specific limitations or restrictions.

The Healthcare Power of Attorney is fiduciary in nature, which means that your health care agent is obligated to use due care and to act in your best interest, in accordance with your wishes.

You may authorize the health care agent(s) to consent to the withholding or withdrawal of life-prolonging measures, give direction regarding medical and/or mental health treatments, and routine medical decisions.

A Healthcare Power of Attorney may contain or incorporate by reference any lawful guidelines or directions relating to your health care as you deem appropriate. In the event of death, you may authorize your health care agent to donate your organs and/or authorize an autopsy. A health care power of attorney will remain effective if a court appoints a guardian to act on your behalf, unless the court issues an order suspending the authority of the health care agent. You may indicate in the document your choice of a guardian in the event guardianship proceedings are commenced.

To be effective, a Healthcare Power of Attorney must be witnessed by 2 persons and certified by a notary public. You may revoke a HealthCare Power of Attorney at any time that you are able to communicate health care decisions. Each healthcare agent named must receive the revocation. If you’ve named your spouse as your healthcare agent, then the authority of that healthcare agent will be revoked upon the entry of a divorce or separation between the principal and the agent. This document should be reviewed periodically, especially in the event of divorce, or death or disability of a named agent, to ensure that they continue to reflect your desires about health care decisions.

Power of Attorney – Financial

A Financial Power of Attorney is a legal document that allows you, the Principal, to select an “attorney-in-fact,” also known as an agent, to act on your behalf regarding your financial or property matters. The powers that you grant your agent can be specific or broad. In North Carolina, a power of attorney, whether broad or specific, is “durable” and remains in effect even after incapacity. This will allow someone to act on your behalf to handle your affairs in time of crisis. A Durable Power of Attorney may allow an agent to powers, such as, but not limited to:

Buying or selling property
Disposing of or purchasing personal property
Buying, selling, or trading stocks, bonds, shares, securities and commodity transactions
Authorizing banking transactions
Authorizing Safe deposits
Handling business operating transactions
Handling personal affairs
Managing applications for social security and unemployment benefits
Donating gifts to individuals and charities

The relationship between the Principal and agent is fiduciary in nature, meaning that the Attorney-of-Fact must act in good faith and with your best interest in mind. The rules regarding power of attorney are governed by the North Carolina Uniform Power of Attorney Act, NCGS Chapter 32C.

Durable Attorney is effective immediately upon execution, or it may be effective upon an event/contingency named by the Principal, such as when the Principal has been incapacitated. If the Principal requests that the Power of Attorney is effective only upon the incapacity of the principal, then it must be determined in writing by two individuals (either a physician, a licensed psychologist, or both) that the Principal is incapacitated within the meaning of the statute. If that doesn’t occur, then the family will have to petition the court for a guardianship proceeding, which is the much costlier and cumbersome option in comparison to executing the Durable Power of Attorney with broad, sweeping powers. An attorney can help you draft the language to make the power of attorney document effective for your needs.

North Carolina Estate Planning Law Firm to Create Protection and Future Plans

At the Law Office of Crystal M. Richardson, PLLC, we understand every estate planning matter is unique and we’re committed to crafting a strategy equally as unique, if needed.

Sometimes, clients will come to us with estate planning matters which need an urgent resolution because the issue is active and ongoing. In those situations, particularly, our legal strategy aims to reach a swift and favorable outcome for our client to maximize the financial savings or minizine the financial loss for our client. In every matter, we weight the options to resolve the matter and resolve the issue.

FAQs

1. Q: What is estate planning, and why is it important?

A: Estate planning involves creating a comprehensive strategy for the management and distribution of your assets after your passing and during your lifetime. A thorough estate plan will also minimize the tax liabilities and costs associated with the administration of your estate . Without a proper estate plan, the probate process may become more complicated for your loved ones, and the distribution of assets may not align with your wishes.

2. Q: Do I need a will, and what happens if I die without one?

A: Yes, having a will created is advisable. If you die without a will (intestate), the state’s laws determine how your assets are distributed. This may result in assets going to relatives you did not intend to benefit. A will allows you to specify your wishes and ensure your assets are distributed according to your preferences. Even if you have a trust instrument, having a will to address the distribution of assets that is not property of your trust is advisable.

3. Q: What is the role of a power of attorney, and how does it work in North Carolina?

A: A power of attorney is a legal document that designates someone to make financial or healthcare decisions on your behalf if you become unable to do so. In North Carolina, a durable power of attorney is recommended, granting broad authority to the designated person. Proper execution and notarization are essential for its validity.

4. Q: How can I minimize estate taxes for my heirs?

A: Estate tax planning in North Carolina involves various strategies to minimize the impact of state and federal estate taxes. Gifting, establishing trusts, and utilizing the state and federal exemptions are common approaches. Consulting with an estate planning attorney can help tailor a plan that aligns with your financial situation and goals.

5. Q: What is probate, and how does it work in North Carolina?

A: Probate is the legal process of handling a person’s assets and debts after a person’s death, and distributing the decedent’s remaining property to the person(s) entitled to share in the decedent’s estate (beneficiaries, if there is a will; heirs-at-law, if there is no will). The word “probate” also refers to probating a will, meaning the court determines that a purported will is valid to pass title. In North Carolina, the probate process is initiated by filing the will with the Clerk of Superior Court in the county where the deceased resided. The executor, also known as the personal representative, plays a key role in managing the probate proceedings.

6. Q: Can I update my will and estate plan after it's been created?

A: Yes, it’s advisable to review and update your will and estate plan periodically. You can amend your will through a codicil or create a new will instrument. Life events such as marriage, divorce, or the birth of children are critical times to revisit and update your estate plan.

7. Q: What is a living will, and how does it work?

A: A living will, or advance directive, outlines your preferences for medical treatment in case you cannot communicate your wishes. In North Carolina, it is legally recognized and can include specific instructions about life-sustaining treatments, organ donation, and other instructions for end-of-life care. Sharing a copy with your healthcare provider ensures your wishes are known and respected.

8. Q: How can a trust benefit my estate plan?

A: Trusts offer flexibility and control over the distribution of assets, potentially reducing estate taxes and avoiding probate. In North Carolina, common types of trusts include revocable living trusts and irrevocable trusts. Properly funding and managing the trust are crucial aspects for its validity, and an attorney can assist in tailoring a trust to meet your specific goals.

9. Q: Can I disinherit someone in my will?

A: Yes, you have the right to disinherit individuals, but it’s crucial to clearly express your intentions in your will. Including specific language stating your decision and consulting with an attorney can help avoid potential legal challenges and ensure your wishes are legally sound.

10. Q: What steps should I take to protect my business in my estate plan?

A: Including your business in your estate plan involves careful consideration. Strategies may include creating a succession plan, establishing buy-sell agreements, and designating a responsible party to manage the business if you’re unable to do so. It is also important to ensure that your operating agreement aligns with your estate plan. An attorney experienced in business and estate law can help develop a comprehensive plan.

11. Q: Can I include my digital assets, such as my Facebook and Instagram accounts, in estate plan?

A: Yes, it is recommended that your estate plan include your digital assets. Including provisions for digital assets in your estate plan ensures that your online accounts, social media profiles, and electronic property are managed according to your wishes. Providing a list of accounts and passwords to your executor or trustee is advisable for smooth administration. It is also recommended that you update the platform with a contact person to manage your online account if it’s memorialized after you’ve passed away. X, formerly known as Twitter, Google, and Facebook, for example, have legacy policies which allow you to name an individual to “memorialize” your account should something happen to you.

12. Q: Can I use life insurance as part of my estate planning strategy?

A: Yes, life insurance can play a crucial role in estate planning by providing liquidity to cover taxes, debts, and other expenses. Updating your beneficiary designations and structuring your life insurance policies properly are essential considerations in creating an estate plan. Working with an insurance professional and an estate planning attorney can help integrate life insurance effectively into your overall plan.

13. Q: What is the role of an executor, and how do I choose one?

A: An executor is also known as a personal representative. It is a “fiduciary” role meaning that you are legally obligated to manage the decedent’s money and property on behalf of the estate, and not your own benefit. An executor is responsible for managing the probate process and distributing assets according to the will. And if there is not a will, then pursuant to the state’s intestate succession laws. Choosing someone trustworthy, organized, and capable, and willing to serve in this role is crucial. Discussing your intentions with the potential executor and obtaining their consent beforehand is advisable.

14. Q: How can I ensure my estate plan is legally valid in North Carolina?

A: To ensure the legal validity of your estate plan in North Carolina, it’s recommended to work with an experienced estate planning attorney. They can guide you through the process, ensuring all legal requirements are met, such as proper execution of documents, adherence to state laws, and staying informed about any changes in legislation that may affect your plan. Regularly reviewing and updating your estate plan with the assistance of an attorney helps maintain its relevance and effectiveness over time.

Contact Us

Phone: 336-805-6200

Email: info@CrystalRichardsonLaw.com

Mailing Address

265 Eastchester Drive
Suite 133, #111
High Point, NC 27262 

Business Hours

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Fri: 9 a.m. to 3 p.m. 
Sat and Sun: Closed