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Attention To Detail

Abstract:

In order for an estate plan to be truly comprehensive, it must plan for the disposition of assets upon death in your Last Will and Testament. A properly drafted Last Will and Testament will accomplish this goal while taking advantage of the applicable state and federal estate tax provisions. This year, the estate tax exemption is two million dollars. If your will has not been reviewed recently, the language may not be adequate to take full advantage of the exemption. Additionally, if you have experienced a life changing event such as a divorce or the birth of a child, your current will may likely need adjustment.

Article:

As you begin your spring cleaning, don’t forget to dust off your estate plan for an annual review. Estate planning is important for everyone, and should include a Last Will and Testament as well as a Financial Power of Attorney, a Health Care Power of Attorney and/or a Living Will. If you don’t have these documents, it is a good time to get them together. If you already have these documents it is a good time to have them reviewed to make sure they accomplish your estate planning goals.

In order for an estate plan to be truly comprehensive, it must plan for the disposition of assets upon death in your Last Will and Testament. A properly drafted Last Will and Testament will accomplish this goal while taking advantage of the applicable state and federal estate tax provisions. This year, the estate tax exemption is two million dollars. If your will has not been reviewed recently, the language may not be adequate to take full advantage of the exemption. Additionally, if you have experienced a life changing event such as a divorce or the birth of a child, your current will may likely need adjustment.

Lifetime events can also impact upon a person’s estate. Such events include mental incapacity and/or incompetency. The most cost effective way to plan for incompetency is to execute a document called a durable power of attorney. In this document, you will designate the person or persons who will manage your financial affairs after you are unable to do so. This document provides for an agent to make financial decisions only, your healthcare decisions are governed by other documents.

The North Carolina General Statutes have given us the framework to exert control over our healthcare decisions by setting forth the legal requirements for two documents, the Living Will and the Health Care Power of Attorney. This begs the questions, “Are two better than one?” and “Which is best for me?” In order to answer these questions, an understanding of the nuts and bolts of each document and what each document can accomplish is essential.

Most people have not made it a priority to discuss these issues with an attorney or their families. They are either too busy or they think they don’t need any of these documents. Such indifference is very evident considering that a recent National Consumer Survey conducted in December, 2004 by Booth Research, found that only one third of adults polled between the ages of 35 and 49 have a living will (Source: National Academy of Elder Law Attorneys). If the recent Terry Schiavo tragedy taught us anything, it is that illness can strike at any age (Terry was 26). The best defense is to be prepared which means giving your family and loved ones the gift of communicating your wishes for the management and disposition of your assets during life and at death as well as your wishes for end of life care and specifically providing for those wishes in properly drafted legal documents.

It is time to talk to get the facts so that you and your loved ones can be confident that you have an effective and comprehensive estate plan in place.

The Estate Planning group of Allman Spry Leggett & Crumpler, P.A., in Winston-Salem, North Carolina, can be reached at 336-722-2300.