Do Young People Need an Estate Plan in Raleigh/Durham/Morrisville, North Carolina?
A commonly held myth is that if you die without a Will in North Carolina, there’s a good chance that the right people will still end up with your stuff, or better yet, if you leave a writing with your desires, it’s as good as a Will. Absolutely not true. I’ve personally observed intense and expensive litigation over hand-written wills (aka Holographic Wills), and it is not a great practice. Another myth is that only older people need wills and/or estate plans, the idea being why designate people to get your stuff when you haven’t accumulated anything yet? That leads to another myth – that only rich people need NC estate planning services.
Even if a younger person does not have assets now, they might someday, or might acquire assets unexpectedly. Additionally, even the meager assets one might have now can be fought over or can be a real pain to distribute after your death without proper planning. Another aspect of estate planning, other than the popular “Will” is the living will and health care power of attorney, both documents that have to do with medical decisions should you become incapacitated. And while older folks become incapacitated from injury, dementia, and the like, car accidents happen to young people too, and you never know when you may need medical decisions made in your absence. It helps to think about these things and plan for the unexpected.
For our Raleigh/Durham/Morrisville clients, here are a few tips about estate plans
-
Have an estate plan for medical emergencies
Despite the fact that young people are invincible (or act like it anyway), serious medical emergencies do happen — and not just to older people. There is a possibility at any age that the unexpected might happen, and making your wishes known lowers the burden on others to guess at what you would want.
-
Have an estate plan for non-medical affairs
For those who have ever tried to call up a utility company and are met with a rude response that they can only talk to the account-holder, you will truly appreciate the value of the Power of Attorney. It assigns someone to act as your agent and penalizes people/companies that do not recognize your authority. This is useful when one is incapacitated. The attorney-in-fact (the one holding the power of attorney) can handle affairs on your behalf. While it is useful when incapacitated, it is useful in other contexts as well, such as when someone is away on business, when somebody is on vacation, when somebody is overwhelmed with work and needs a little help, etc.
-
Take care of your minor children through your estate plan
Many young people believe they don’t need to do any estate planning with respect to where their assets go because they don’t have many. However, it is important to have a plan in place with respect to your minor children for two reasons. First, if both parents die while the child is still a minor, the Court will assign a guardian. Having a nomination in place, or several, will give the Court guidance on where to look for a guardian.
Second, you may want to attach strings or set conditions on the funds given to children. Imagine giving an 18 year old a lump sum of money. While there are exceptions, an 18 year old will probably go buck wild. Proper estate planning ensures that the children take inheritance according to your wishes.
-
Create an estate plan for an untimely death
If you don’t have a basic last will and testament in place for an untimely death, North Carolina laws will kick in and decide where your stuff goes. The state created plan will not likely be the same as your desire. In fact, it’s very unlikely. A basic will and testament is important because it allows you to name beneficiaries and nominate someone to take care of your children. It also allows you to decide who will manage your estate. Getting a Will can avoid a lot of headaches during an already-challenging time for your family.
So many people are under-insured in North Carolina. We don’t push or sell life insurance, but it goes hand in hand with the tools we provide our clients. A life insurance agent should walk you through what your loved ones would need to thrive in your untimely absence, and recommend a policy that fits your needs. The cost of these policies is minimal compared with the risk someone is taking without insurance.
If you need help with Raleigh, Durham, and Morrisville Estate Planning, feel free to reach our North Carolina Estate Planning attorneys for a consultation.
