THE LAW CORNERTHE LAW CORNERBasics of Estate PlanningBasics of Estate Planning

Intestate SuccessionIntestate Succession

Spouses Share

No child or lineal descendant or parent entire estate both real and personal

property

No lineal descendant but parent survives ½ interest in real property, first $50,000

plus ½ balance of personal property

Spouses Share

No child or lineal descendant or parent entire estate both real and personal

property

No lineal descendant but parent survives ½ interest in real property, first $50,000

plus ½ balance of personal property

Intestate SuccessionIntestate Succession

One child or lineal descendantSpouse takes ½ interest in real property,

first $30,000 plus ½ balance of personal property

More than one child or lineal descendantSpouse takes 1/3 interest in real property,

first $30,000 plus 1/3 balance of personal property

One child or lineal descendantSpouse takes ½ interest in real property,

first $30,000 plus ½ balance of personal property

More than one child or lineal descendantSpouse takes 1/3 interest in real property,

first $30,000 plus 1/3 balance of personal property

Intestate SuccessionIntestate Succession

Share of OthersDecedent's lineal descendants

Per capita at each generationB takes 1/3; D, E, and F take 2/9

Share of OthersDecedent's lineal descendants

Per capita at each generationB takes 1/3; D, E, and F take 2/9

Decedent W

A B

E FD

C

Intestate SuccessionIntestate Succession

To parents if no child or To parents if no child or grandchildgrandchild

W takes ½ interest in real property, plus W takes ½ interest in real property, plus the first $50,000 of personal property and the first $50,000 of personal property and ½ any excess. The balance goes to M.½ any excess. The balance goes to M.

MF

WDecedent

Basic Estate PlanningBasic Estate Planning

Basic Estate Planning Package:

1. North Carolina Will & Testamentary Trust OR Revocable Trust/Pour-Over Will

2. Living Will 3. Financial Power of Attorney 4. Health Care Power of Attorney

Basic Estate Planning Package:

1. North Carolina Will & Testamentary Trust OR Revocable Trust/Pour-Over Will

2. Living Will 3. Financial Power of Attorney 4. Health Care Power of Attorney

THE LIVING WILLTHE LIVING WILL

Do you want life-sustaining treatments or procedures administered to you if you are in a terminal and incurable condition or a persistent vegetative state?

It is called a "living will" because it takes effect while you are still living.

Do you want life-sustaining treatments or procedures administered to you if you are in a terminal and incurable condition or a persistent vegetative state?

It is called a "living will" because it takes effect while you are still living.

THE LIVING WILLTHE LIVING WILL

A North Carolina living will goes into effect when:

1) your doctor has a copy of it, 2) your doctor has decided that you are

no longer able to make your own health decisions, and

3) your doctor and another doctor have determined that you are in a terminal and incurable condition or a persistent vegetative state.

A North Carolina living will goes into effect when:

1) your doctor has a copy of it, 2) your doctor has decided that you are

no longer able to make your own health decisions, and

3) your doctor and another doctor have determined that you are in a terminal and incurable condition or a persistent vegetative state.

THE LIVING WILLTHE LIVING WILL

Defining “life-sustaining treatments or procedures”

These are treatments or procedures that are not expected to cure your terminal condition or make you better.

They only prolong dying. Examples are mechanical respirators,

which help you breathe, kidney dialysis, which clears your body of wastes, and cardiopulmonary resuscitation (CPR), which restores your heartbeat.

Defining “life-sustaining treatments or procedures”

These are treatments or procedures that are not expected to cure your terminal condition or make you better.

They only prolong dying. Examples are mechanical respirators,

which help you breathe, kidney dialysis, which clears your body of wastes, and cardiopulmonary resuscitation (CPR), which restores your heartbeat.

THE LIVING WILLTHE LIVING WILL

Defining “terminal and incurable condition”

A terminal and incurable condition is defined as a condition for which the administration of medical treatment will only prolong the dying process, and without administration of these treatments or procedures, death will occur in a relatively short period of time.

Defining “terminal and incurable condition”

A terminal and incurable condition is defined as a condition for which the administration of medical treatment will only prolong the dying process, and without administration of these treatments or procedures, death will occur in a relatively short period of time.

THE LIVING WILLTHE LIVING WILL

Defining “persistent vegetative state”A persistent vegetative state means

that a patient is in a permanent coma or state of unconsciousness caused by illness, injury or disease. The patient is totally unaware of himself, his surroundings and environment and to a reasonable degree of medical certainty, there can be no recovery.

Defining “persistent vegetative state”A persistent vegetative state means

that a patient is in a permanent coma or state of unconsciousness caused by illness, injury or disease. The patient is totally unaware of himself, his surroundings and environment and to a reasonable degree of medical certainty, there can be no recovery.

POWER OF ATTORNEYPOWER OF ATTORNEY

What is a Power of Attorney?Gives one person the full power

and authority to represent another person.

Principal, Agent (attorney-in-fact) and fiduciary duties.

Must be signed by both the agent and the principal, be witnessed by two people and signed in the presence of a Notary Public.

What is a Power of Attorney?Gives one person the full power

and authority to represent another person.

Principal, Agent (attorney-in-fact) and fiduciary duties.

Must be signed by both the agent and the principal, be witnessed by two people and signed in the presence of a Notary Public.

POWER OF ATTORNEYPOWER OF ATTORNEY

Two kinds of PowerA General Power of Attorney

covers all of your legal, financial and personal decisions except those pertaining to your medical care and treatment.

A Limited Power of Attorney only covers decision-making in areas that you specify.

Two kinds of PowerA General Power of Attorney

covers all of your legal, financial and personal decisions except those pertaining to your medical care and treatment.

A Limited Power of Attorney only covers decision-making in areas that you specify.

POWER OF ATTORNEYPOWER OF ATTORNEY

When do they become effective?

Immediately.A Durable Power of Attorney-even in

the event you become mentally unable to make decisions on your own (incompetent).

A Springing Power of Attorney-only in the event you become incompetent.

When do they become effective?

Immediately.A Durable Power of Attorney-even in

the event you become mentally unable to make decisions on your own (incompetent).

A Springing Power of Attorney-only in the event you become incompetent.

HEALTH CARE POAHEALTH CARE POA

Gives broad powers to make health care decisions, including mental health treatment decisions, for you. 

This power includes the power to authorize routine medical tests, scans or surgery, admit you to a facility and administer medications.

This power exists only when you are unable to give informed consent and will allow timely permission and consent so proper care can be received.

Gives broad powers to make health care decisions, including mental health treatment decisions, for you. 

This power includes the power to authorize routine medical tests, scans or surgery, admit you to a facility and administer medications.

This power exists only when you are unable to give informed consent and will allow timely permission and consent so proper care can be received.

HEALTH CARE POAHEALTH CARE POA

It may be activated if a person is temporarily unconscious, confused or unable to communicate medical desires.

Must be mentally competent and of sound mind when signing. 

Utmost confidence in your designated person.

It may be activated if a person is temporarily unconscious, confused or unable to communicate medical desires.

Must be mentally competent and of sound mind when signing. 

Utmost confidence in your designated person.

NORTH CAROLINA WILLNORTH CAROLINA WILL

The Benefits of a WillYou chose the executor, preferably

two.You dictate funeral arrangements.You provide general and specific

gifts.You make plans that benefit you,

your family and the organizations and causes in which you care deeply.

The Benefits of a WillYou chose the executor, preferably

two.You dictate funeral arrangements.You provide general and specific

gifts.You make plans that benefit you,

your family and the organizations and causes in which you care deeply.

NORTH CAROLINA WILLNORTH CAROLINA WILL

The Benefits of a Will…continued You can reduce or even eliminate estate

taxes and save taxes in a survivor's estate. You can also create trusts to provide for

your spouse, your children and other loved ones.

You name a guardian (caretaker) for your children and a trustee (who distributes assets for children until they are mature and capable of making their own financial choices).

The Benefits of a Will…continued You can reduce or even eliminate estate

taxes and save taxes in a survivor's estate. You can also create trusts to provide for

your spouse, your children and other loved ones.

You name a guardian (caretaker) for your children and a trustee (who distributes assets for children until they are mature and capable of making their own financial choices).

MORE ABOUT WILLSMORE ABOUT WILLS

HOW TO REVOKE Subsequent instrument Physical act, i.e. burn, tear,

destroy Operation of Law-Divorce or

annulment; changes only provisions for spouse.

HOW TO CHANGE Codicils Same formalities

HOW TO REVOKE Subsequent instrument Physical act, i.e. burn, tear,

destroy Operation of Law-Divorce or

annulment; changes only provisions for spouse.

HOW TO CHANGE Codicils Same formalities

THANK YOU!THANK YOU!

The Law CornerBrian S. Demidovich

211 E. Six Forks RoadSuite 209

Raleigh, North Carolina 27609Tel: (919) 424-8319Fax: (919) 424-8320

Web: www.thelawcorner.comE-mail: brian@thelawcorner.com

The Law CornerBrian S. Demidovich

211 E. Six Forks RoadSuite 209

Raleigh, North Carolina 27609Tel: (919) 424-8319Fax: (919) 424-8320

Web: www.thelawcorner.comE-mail: brian@thelawcorner.com