10 Common Mistakes in Estate Planning in North Carolina: How to Avoid Them?

Estate planning can be legally and emotionally complex. Though it is often understood that creating an estate plan is recommended in many circumstances, beginning the process can be intimidating. One way to simplify the process is to explore common mistakes in estate planning in North Carolina, then determine how to avoid making those mistakes while you create your plan.

To help our clients mitigate potential mistakes, Thomas & Webber created this list of common mistakes and ways to avoid them.

1. Waiting to start estate planning: One of the biggest mistakes that can be made is simply not having an estate plan; only 32% of adults report having a will. Creating an estate plan will make the unfortunate event of your incapacitation or death easier on your family.
2. Not properly funding a trust: If making a trust is the right choice for you, you must properly fund it. Property can only pass through a trust if it is titled in the name of the trust.
3. Not naming alternative executors: Sometimes situations arise where your preferred executor is unavailable to act on your behalf. Naming alternatives allows you to control who manages your estate, even if the preferred person is unable to serve.
4. Not adding beneficiary designations: Some assets, such as bank accounts and jointly owned property, can have a named beneficiary or have survivorship noted on the title. This allows for transfer without going through probate.
5. Naming improper beneficiaries: Naming the estate or minor-age children as heirs ensures your will goes through probate. There are other options available to better approach your minor children receiving your assets.
6. Not executing a Durable Power of Attorney: If a person becomes incapacitated, assets solely in their name cannot be accessed without a guardianship proceeding, even if the individuals are spouses. Creating a Durable Power of Attorney allows the spouse to access these accounts.
7. Not making medical plans: A comprehensive estate plan is more than bequeathing property and assets. Within an estate plan, you can also create a Medical Power of Attorney and a living will to ensure your medical treatment wishes are followed.
8. Not planning for nursing home costs: 35% of Americans aged 65 and older are likely to enter a nursing home. If you do not have long-term care insurance or cannot pay outright, a nursing home stay is likely to be funded by Medicaid. However, Medicaid requires most applicants to spend down their asset value before qualifying. A Medicaid Asset Protection Trust (MAPT) can help you protect your assets.
9. Not updating your estate plan: Simply creating an estate plan is not enough. As your life changes, your estate plan should be updated to reflect those changes.
10. Not communicating with family: 52% of adult children are unaware of where their parents keep their estate documents, and a staggering 85% of those children do not know the contents of those documents. Communicating with your family ensures they are aware of your wishes and where they can find important documents.

Why Hire an Estate Planning Lawyer With Thomas & Webber

Estate planning is an extremely personal process. The legal team you choose to work with can make or break your experience. Thomas & Webber understands this and works to support our clients through this challenging process. When you are creating an estate plan, we are the right choice because we are:

• Well-reviewed: One of the most effective ways to see how an attorney treats their clients is statements from past clients, either from online reviews or word of mouth. The Thomas & Webber team has been described as knowledgeable, prompt with communication, detail-oriented, and highly professional.
• Effective communicators: Estate and inheritance law can be confusing. We can break these laws down so you understand your options and which choices are the most advantageous.
• Compassionate: It is not easy to make some of the decisions that must be made while creating an estate plan. Our team will help you navigate these challenging decisions with compassion and understanding.

FAQs

What Happens if I Make a Mistake While Creating an Estate Plan?

The outcome of making a mistake while creating an estate plan depends on the nature and severity of the mistake. Some mistakes will only impact a small portion of the document where the mistake was made, but other mistakes can have drastic impacts. For example, making a mistake that invalidates a will could result in your assets being distributed according to intestate laws.

Do I Need an Attorney for Estate Planning in North Carolina?

In North Carolina, it is possible to create an estate plan without the support of an estate planning attorney; however, the chance of making impactful mistakes is significantly higher. Experienced estate planning attorneys will have spent years helping clients like you create a comprehensive estate plan. This experience is likely to translate to faster resolution periods, fewer mistakes, and a simpler process.

What Should I Look for in a Good Estate Planning Lawyer?

When comparing estate plan lawyers, there are several indicators of a quality legal team. Positive reviews from past clients tell you that the clients were so satisfied with the lawyer that they took the time to write a review. You should also be looking for a legal team that values professionalism and compassion, as estate law can be complex, and the emotions of creating an estate plan can be even more so.

How Much Does an Estate Planning Lawyer Cost in North Carolina?

It can be difficult to predict the cost of an estate planning lawyer in North Carolina, as the total cost will depend on multiple factors. The value and complexity of the estate can heavily impact the cost, as can the estate plan components. An estate plan with a will, trust, and medical power of attorney will cost more than an estate plan with only a will.

Trusted Estate Planning Support in North Carolina

The Thomas & Webber team believes our clients are owed professional and knowledgeable support while they create a plan for their property and loved ones following their death. We understand how emotionally difficult this process can be and can handle your case with the care it deserves.

Whether you need to create an estate plan from scratch or have already begun working on one, Thomas & Webber can help. Our skilled team has years of experience helping our community in the Old North State, and we are ready to assist with guiding your estate planning to avoid potential mistakes. Schedule a consultation with our team to see how we can help.