Blended Families and Accidentally Disinheriting Your Kids: It’s Easy to Do!

  Blended Families and Accidentally Disinheriting Your Kids: It’s Easy to Do!

Remember the Brady Bunch? Mike and Carol Brady were the blended family bringing 3 kids each into their new marriage, so then there were 6!  I wonder what their estate planning looked like. Did Mike leave everything to Carol believing she would actually leave everything upon her death to all 6 equally when she died, not favoring her 3 girls over his 3 boys, vs. leaving everything to Sam the milkman??? 

We all would like to think that Carol would “do the right thing,” but what if she didn’t? What if she never liked Mike’s boys?  After Mike died, Carol changed her Will and left everything to Marcia, Jan and Cindy! End result:  The fruits of Mike’s architectural career would pass only to her children, while excluding Mike’s biological children. It happens a lot more often than most of us realize. Any affection Carol (OR MIKE) displayed was just an act put on for the benefit of the new spouse’s offspring, always knowing that the step-kids would be cut-out in the end. 

Sometimes, though, it happens slowly over time. As the years pass after Mike’s death, Carol and the boys grow apart. When she finally looks at her estate plan in order to update it, she excludes them since they haven’t kept in touch anyway.   There are no bad feelings or ill will; they just grew apart.  

It is estimated that more than half of U.S. families are blended, so follow these four pointers to protect your family and your assets.

1. You Need More than a Simple Will.

A simple will is an accident waiting to happen. It completely opens the real potential that your biological children receive nothing after you and your spouse are gone.  However, if you still want to create an “I love you” Last Will and Testament that leaves everything to your spouse, you just have to know that your spouse has the full ability to cut your children out of his or her estate plans and leave all your assets to his children, a new spouse or anyone they want. 

Instead, you need to consider a trust that leaves assets to your spouse for their lifetime, with the balance passing to your children on your death. This ensures that your spouse has access to the funds during their lifetime, but whatever is leftover of your assets go to your children when you are gone.

1. Choose a sophisticated and experienced trustee. 

Who will make the financial decisions about investing the assets and distributing them to your spouse after you are gone? There could be tension between what your spouse wants and what your kids want to your spouse to have. Who will act as the referee between them?

Plan for the possibility that your surviving spouse will remarry. A trust can ensure that the assets are protected in the event your spouse remarries.

1. Consider leaving some assets to your biological children on your death. 

Don’t leave your kids sitting around waiting for their stepmother or stepfather to kick the proverbial bucket.  This wait can cause all sorts of anxiety and animosity where the your kids try to force their inheritance sooner than when your spouse passes.  A little bit of something is better than a whole lot of nothing! 

1. Decide who will make health care decisions. 

This is ALWAYS a big question.  It is not uncommon for stepparents to cut off access and information to their spouse’s children when the spouse has been hospitalized. But think about this, will your children prevent your spouse from visiting you if you give them the authority to make decisions on your behalf? Give this topic a lot of consideration and brainstorm with legal professionals for your best options. 

In this day and age, it is not uncommon to remarry after a divorce or the death of a spouse.  Often in these remarriages, one or both spouses have children from a prior marriage.  These blended families can pose some challenging estate planning issues for the newlyweds no matter how old or young you are!   If you die before your new spouse, how do you ensure that both your new spouse and your children from your first marriage are taken care of and receive an inheritance after you are gone?  Who gets the house – your new spouse or your children?  Will your new spouse be kicked out of your marital home when you are gone?  How will your new spouse get by financially if you choose to provide an immediate inheritance for your children?

In a perfect world, you could leave everything outright to your new spouse and trust your new spouse to eventually leave the balance to your children through a Will.  Unfortunately, your spouse may decide for various possible reasons to disinherit the step-children by simply changing his or her Will.  Don’t think it could happen?  How about this scenario?

Bob and Betty are a married couple with three kids.  Betty tragically passes away at a young age.  Eventually, Bob meets and marries Jane.  Bob and Jane set up reciprocal Wills leaving all of their assets to each other otherwise to Bob’s children.  Bob dies shortly after due to a massive heart-attack, and Jane inherits all of Bob’s property.

A few years later, Jane marries James who has two children of his own.  James moves into the house that Jane inherited from Bob.  Bob’s children do not get along with the James.  James convinces Jane to revise her will to leave everything to James and his two children upon her death.  James outlives Jane and inherits all of the assets Bob left to Jane.

Do you think Bob ever envisioned James inheriting his assets?  While Jane is taken care of in this scenario, Bob’s children were unintentionally disinherited by Bob.

SOLUTION:  Bob (and Jane) could have their assets transferred to a revocable trust during their lifetime.   They can amend or revoke the Trust at any time so they are both free to change their minds while they are both alive.  Upon Bob’s death, the trust would become irrevocable as to his share or interest in the trust, and the trust will continue for the benefit of Jane and the benefit of Bob’s children, all without disinheriting anyone!!  The Trustee could invest the assets to make them income producing, and pay all of the income to Jane for the rest of her lifetime while preserving the principal for Bob’s children.  Upon Jane’s death, the remaining principal of the trust would go to Bob’s children either outright.  If Bob wants Jane to have access to the trust principal, Bob could name an independent trustee who has the power to pay some of the principal to Jane if she needs the principal, or if he wants, can let Jane be in charge.

Some benefits of using a trust in this situation include:

• Adding spendthrift protection

• Maintaining post-death control over assets; and 

• Ensuring that you provide for both your spouse and children.

There are many options available under a Revocable Trust to suit your individual needs and goals.  The central point is, by proper planning, you can maintain control over your assets to prevent disinheritance of your children while still providing for your second spouse.

At Thomas-Walters, PLLC, we strive to equip you with the knowledge required to make the right decision for you and your family.  Call our offices for a free consultation at (888) 787-1913 or to request a free special legal guide on “Knowing What you Don’t Know: NC Estate Planning”

LOST FOREVER: DIGITAL ASSETS IN AN OUTDATED ESTATE PLAN

 LOST FOREVER: DIGITAL ASSETS IN AN OUTDATED ESTATE PLAN

Imagine, this…your dad, who you had just seen at Easter, using his camera to snap photos of his beloved family at church, the grandkids getting into their Easter basket, the Easter egg hunt, and then the family luncheon, dies unexpectedly two days later of a brain aneurism. You are devastated, thinking about the memories just made and you want to capture those moments from his cell phone, but it is locked. You call the cell phone provider, only to be told that they cannot give you any information, or access to the phone.  The photos are lost forever!!!  If only there were a way….

What Are Your Digital Assets?

We live in a very electronic age. Most of us cannot live without computers, cell phones, on-line banking, automatic bill pay, Facebook, email, etc.  But you know, many people take all the security and passwords for granted in our electronic age when we are taught not to share these keys to our on-line lives.  What happens to these things and your family’s ability to access these digital accounts and devices that control and drive your life when you are incapacitated or you die?  A mess is the result, if they cannot easily access all that you control. But somethings you want to leave private, and that is the one of the keys to having your Digital Estate Plan in place.

This list is not exhaustive, but is to get you thinking about all of your Digital assets and information your family, power of attorney, executor or trustee will need if you become incapacitated or even die. 

• Email Accounts: Account user names and passwords.

• Social Media Accounts: Facebook, Twitter, Instagram, Flickr, Pinterest, LinkedIn, and others.

• Instant Messaging/Chat Accounts: Skype, Apple Messages, Google Hangouts, ICQ, Jabber, Yahoo Messenger, AOL Instant Messenger, etc.

• Multimedia Accounts: Instagram, Snapfish, Shutterfly, Flickr, Hulu, YouTube, Netflix, Apple iTunes, Pandora, Vimeo, Spotify, etc.

• Publication Accounts: newspapers, magazines, blogs, etc.

• Cloud Storage Accounts: DropBox, Google Drive, Onebox, Box, and others.

• Databases: Digital Organizers, Evernote, and other repositories

• Photo libraries: Google, Collage, Shutterfly,

• Cell phones

• Archives & Backups: On-site backups; Crashplan, BackBlaze, Amazon S3, and other off-site services.

• Financial Accounts: Banks, credit unions, brokerage accounts, mutual funds, retirement savings accounts, credit card accounts, employee benefit accounts, PayPal, Social Security.

• Benefit Accounts: Airline miles, railroad miles, hotel rewards, retailer reward/loyalty programs

• Insurance Accounts: Life, Property, Health, AD&D, Long Term Care, Cancer, Worker’s Comp

• On-line Merchant Accounts: Department stores, Amazon, etc.

• Online Businesses: Online stores, blogs, and websites, including PayPal, eBay and Etsy.

• Website Accounts: Domain names, hosting services, online business accounts, etc.

• Automatic Bill Pay and Automatic Charitable Donations

• Employment accounts: Indeed, Career.com, Care.com

It is imperative that you consolidate all this information needed to access your accounts. It needs to be in a document that you keep secure but is easily accessed and understood by your family, your Digital Power of Attorney, Executor or Trustee. Think about all your digital assets, both personal and professional, and think about what they might be worth, financially, and emotionally.  Just imagine how your significant other or family will feel if all their credit cards are frozen, if they cannot access precious photographs from your cell phone, or worse, if they cannot even access accounts to stop automatic payments from coming out of accounts to preserved assets for your heirs.

How Digital Assets Are Controlled

Terms of service agreements and privacy policies govern access to social media and email accounts.  Most of these types of agreements state the account expires when a user dies and is not transferable. As a result, surviving family members are unable to access social media accounts or valuable digital assets, since most estate plans were created without consideration of these things and old state laws that govern the actions of personal representatives or executors were enacted before email and social media became widespread. 

However, at least 46 states since 2013 have enacted laws addressing access to email, social media accounts, microblogging or other website accounts, or certain electronically stored information, upon a person’s incapacity or death. In 2016, North Carolina became one of the forty-one states that adopted digital assets laws.

Create Your Digital Asset Inventory

Your inventory should include all the information that describes your accounts, the access location, login information including user name and password, and all the other URL and need information, aka metadata that goes along with digital assets.  Don’t forget photos, documents, and backups stored in the cloud or in off-site locations. Since this information changes often it is critical that you review and update the inventory regularly.

Plan for Unexpected Events

Although your inventory will probably be invaluable to you in your daily life, you should plan for two types of unexpected events:

1. The computer containing your inventory crashes, or your house burns down and any paper copies of your Inventory are lost. This shouldn’t be a big problem, if you have been diligent about maintaining backups and if you have shared copies with your trusted advisors including your power of attorney. An at home safe is one of the best ways to keep paper documents secure from catastrophes, but it has to be waterproof and fireproof.

2. You are incapacitated or die and your heirs need access to your digital assets. It is a good idea to identify someone that you trust to be your Digital Executor/Trustee and let them know what you want done with your digital assets. For example, you might want them to:

   • Archive everything for your heirs.

   • Provide access by specific individuals or groups to designated content.

   • Delete some or all of your digital assets. Be specific about your wishes.

   • If you want to let your executor decide what to do with your assets you should make the clear in the instructions.

You might want to archive your most important digital assets and then provide your executor with the information needed to access the archive.   If you use 1Password, Google or some other password manager be sure to include the master password in the instructions. And don’t forget basic things like the password to your computer and password to your cell phone. NOTE: facial recognition and finger prints cannot be unlocked!)

At Thomas-Walters, PLLC, we care about you and your family, making sure every part of your estate plan preserve precious memories for your family and not leave a mess.  Contact us for a free consultation to make sure you have considered everything for a perfect plan at (888) 787-1913 or to request your free Digital Asset Inventory Log. 

A Historical View

 On January 1, 2020, President Donald Trump signed into law the Setting Every Community Up for Retirement Enhancement (SECURE) Act. As an estate planning attorney, I recognized this as a significant change that effects a lot of people. Because the Act moved rather quickly through the House and Senate, many of the details and nuisances of the new act still have yet to be understood and interpreted. When you couple that with being hit by a pandemic shortly thereafter, even Tax attorneys and CPA have been delayed in trying to digest all of the ramifications that these changes entail.  

A Historical View

The declared purpose of the SECURE Act:  enhance the accessibility and flexibility of tax-deferred retirement saving vehicles. While there are many provisions that are considered welcome updates, there are also significant changes with increased tax consequences. Before the SECURE Act, a person who was 70 ½ years of age or older could not contribute any longer to their IRA even if they were still working.  Also, at age 70 ½, the government required the IRA owner to start taking money out of the IRA.  The amount is a calculation known as the required minimum distribution (RMD).   Interestingly, 401(k) accounts do not have these age restrictions for contributions, and 401k account owners do not have to take an RMD at 70 ½ if they are still working.

The age limit of 70 ½ for IRAs was put in place in the 1960’s.  However, we are living longer and people are working later into their lives, so it certainly seems reasonable to make these changes. But there is one noted drawback:  the Joint Committee on Taxation (JCT) estimates that raising the RMD age from 70 ½ to 72 would cost the government $8.9 billion in lost revenue over the next 10 years.

Increased Taxes on Our Children

Congress has the philosophy that these tax-deferred accounts are designed to provide people with “individual retirement security”.  They are a way for a person to save money to enhance and support their retirement. Therefore, Congress believes that the account owners would spending their retirement savings during their lifetime instead of using it as a vehicle to transfer wealth across generations. As a result, the SECURE Act incorporates a provision — arguably the most consequential one — that mandates most inherited retirement account balances be distributed (and therefore completely taxed) within 10 years after the account owner’s death.  

Prior to the SECURE Act, a commonly used wealth-planning strategy was to name a younger beneficiary, like child or grandchild), who could then elect to have the account balance distributed out to them over the young beneficiary’s lifetime.  Some families would even ensure this lifetime payout benefit by using a Conduit Look-Through  Trust, which would then be named as the primary beneficiary of the account.  This “stretch IRA” strategy has had incredible tax benefits over the years including: 

1. Allowing the assets to continue to grow tax deferred after the original account owner’s death. 

2. Allowing if the account owner to only take the RMD each year, leaving more assets in retirement accounts that could potentially grow faster than the RMD withdrawals. 

3. Allowing the account owner to reduce the tax consequences since young child or grandchild could  stretch the distributions over a long period. This occurs because having smaller distributions across the life of the beneficiary is less likely to force them into a higher income tax bracket verses a large lump sum payout or large distributions.

Unfortunately, the SECURE Act destroy the stretch and now shortens the distribution period for most beneficiaries from their lifetime to just 10 years from the date of the account owner death. 

4 Major Exceptions To The Required 10-Year Withdraw Rule:

*spousal beneficiaries (they still get the stretch)

* beneficiaries who are no more than 10 years younger than the original IRA owner (which could apply to beneficiaries who are siblings or unmarried partners)

* disabled and chronically ill beneficiaries, or 

* beneficiaries who are minor children (but not grandchildren) of the account owner, have the  10-year rule delayed until the child reaches the age of majority, which is age 18 in most states

 By restricting the stretch IRA, congress estimates an increase in revenue by $15.7 billion over the next 10 years. 

While this article could go on and on for a few more pages, it highlights many of the major issues that effect everyone. Here are a few of the other provisions of the Act:

• Eliminates the age limit on contributions to IRAs

• Reduces the maximum period over which an inherited IRA has to be withdrawn- no more lifetime stretch for our Children or grandchildren! 

• Extends the minimum age for the Required Minimum Distribution (RMD) to age 72 

• Allows small employers to join together to provide 401(k) plans for employees

• Allows part-time workers to enroll in 401(k) plans

• Provides the ability for 401(k) plans to provide annuities as a payout option for lifetime income

• Allows new parents to withdraw up to $5,000 per parent from their tax-preferred retirement saving accounts without penalty

All of this is likely leaving you wondering, “Well, now what do I do?”  Stay tuned, as we will be laying out several, potential options in next month’s newsletter. In the meantime, if you know it is time for a change to your estate plan, feel free to contact our office for a free 30 minute consultation by phone or by video conference.  You can reach us at (888) 787-1913 or email legalteam@twestateplanning.law.

CCRC vs. Assisted Living Communities: The Real Difference

 CCRC vs. Assisted Living Communities: The Real Difference

According to Pew Research Center, approximately 10,000 Baby Boomers turn 65 almost every day, and about that same number will reach retirement age every day for the next decade. That’s a lot of retirees, and likely one of the reasons the retirement living industry is booming! Among the choices for retirement communities, two of the most popular options are continuing care retirement communities (also known as CCRCs or “life plan communities”) and independent living communities (also known as rental retirement communities). But what is the difference between the two?   

CCRCs actually include independent living communities within them as well. So, both types have residents that are still living independently and possibly still quite actively in some cases. However, there are some key differences, primarily in four main areas: services and amenities, healthcare, cost, and intangibles.

Amenities and services

Whether we are talking about CCRCs or rental retirement communities, some offer more in the way of amenities and services than others. Naturally, newer communities will typically offer the latest and greatest in terms of amenities, but even well-established places fight to keep up and often renovate and add new services plus amenities to keep pace. Residential living services, however, are not necessarily tied to the age of the community and greatly differ from one community to the next, largely dependent  on cost.

Some of the typical amenities and services found at both CCRCs and independent living communities include a community clubhouse, lounge areas, event spaces, dining rooms and bistros, fitness center and group fitness classes, swimming pool, planned social events, housekeeping services, interior and exterior upkeep and maintenance, scheduled transportation and Wi-Fi.

While there are exceptions, it is generally thought that CCRCs offer a higher level of amenities and services than stand-alone independent living communities. At CCRCs, you may find a choice of much larger residential living units, including stand-alone cottages and villas as well as more communal spaces, such as cultural arts centers and galleries. CCRCs go above retirement communities and offer personal trainers, gourmet chefs, community gardens, spas, salons and barber shops, theatres, memberships at local clubs, in order to provide convenience while continuing independence.  

Healthcare and other care-related services

The key feature of a continuing care retirement community that distinguishes it from stand-alone independent living communities is a contractual obligation to provide housing as well as access to a full spectrum of care services, including skilled nursing, just like in a nursing home.  However, at independent living communities, the most common arrangement is to offer supportive care services to residents in their own apartment, which are contracted through an independent, outside home-care services agency. Overall, independent living communities are not equipped to provide services for residents who develop needs for higher acuity assisted living or skilled nursing care, which means those residents usually have to leave and go to a long term care facility like a nursing home. 

Cost

CCRCs often market to seniors with higher incomes, although some are certainly more economical.  But the majority of CCRCs require an large lump sum entry fee, in addition to a monthly service fee. These entry fees are typically used for capital improvements, paying down debt, and sometimes to offset the cost of healthcare services received by residents, not just for the new entering resident.

 But to try to do an apples-to-apples comparison with independent living communities, it is necessary to some key things. First, you should understand what is included in your monthly fee plus what is not, as the fee may not include services or amenities that you might like to utilize. 

Second, you should compare a scenario where you eventually require advanced assisted living or even around-the-clock nursing care.  Depending on the type of residency contract, some CCRC residents may see little or no monthly increase for these services, while that will not be the case with assisted living. 

These costs can be draining, with ranges as high as $12,000 or more per month for skilled nursing. The point here is that you should consider total lifetime cost and not just the cost today. On the flip side, if these types of care services are never required, then independent living would almost surely prove to be the less costly option, but none of us can predict the future.

Intangibles

Lastly, consider the value you place on the intangibles like peace of mind living someplace that makes available the types of services they may eventually require.  This is a huge stress relief for children and family members who may otherwise shoulder a heavy caregiver burden. Planning for the cost of care is one thing, but having access to care is also important to many seniors. So, the question is really: How much it is worth to you to have a plan in place for the future?

At Thomas-Walters, PLLC, we strive to equip you with the knowledge required to make the right decision for you and your family.  Call our offices for a free consultation at (888) 787-1913 or to request a free special legal guide on “Knowing What you Don’t Know: NC Estate Planning”.  

Finding Certainty in Uncertain Times: Coronavirus and Beyond

During these uncertain times, our offices remain open for business to provide essential services that everyone needs.  While Thomas-Walters Probate and Estate Planning is committed to helping slow the spread of the Coronavirus by adopting CDC guidelines in our seven offices, we’re also providing the same level of care and support to our communities and our clients, with a few added extra features and touches. We’re excited about the new ways we’re providing services, so you decide how to experience the TW difference:

Reminders for Everyone:

o   Phone call; and/or

o   Email; and/or

o   US mail; and/or

o   Text.

Distractions often derail our goals, but we are here to keep you on track. We use every mean possible, even multiple times, to make sure you don’t miss a single opportunity to connect with us.

Options for Initial Visit with Attorney Stacey Walters:

o   In person, in our office;

o   In our office parking lot, while you remain in your car;

o   In person, at your home: inside or outside, your preference;

o   FaceTime with an apple device;

o   In person by Zoom video conference or Skype; or

o   By phone conference, voice only.

Adapting to change is a challenge for anyone, but our support staff ensures you feel comfortable with finding your way to connect with Attorney Stacey Walters. We guarantee you will enjoy your visit, and to prove it, the first visit is FREE.

Options Upon Early Arrival for Your In-Office Visit:

o   Wait Where You Want: just call to let us know where to find you at our office (car, lobby, waiting room) and we will find you for your; or

o   Wait in our office waiting area with social distancing space;

*Attorney Stacey Walters will greet you while wearing a smile under her mask.  She will walk you back to her office where surfaces are disinfected between appointments. All visitors are asked to use hand sanitizer upon entering the office in accordance with CDC recommendations. Feel free to bring your own pen to use, but she will have a brand new TW pen that you can use and take home. 

We are also currently able to provide you with a face covering, if you do not have your own and would like to wear one during your visit.

Options for executing and signing your legal documents:

o   From the comfort of your home by video conference, thanks to a change in laws on 5/5/2020, no need for witnesses to be in person and we can notarize remotely (but only until 8/1/2020);

o   Drive-In to one of our offices and we will serve you in your vehicle, complete with witnesses at some of our locations; or

o   In our office, following social distancing protocols with witnesses present when possible.

Some things just can’t be handled via video chat.  While our government just temporarily relaxed the witnessing of some documents, it is only going to last until August 1st.  So we have taken measures to serve you with witnesses when possibly by offering a drive-in signing or in office signing.  

Options for delivering documents, drafts and executed documents:

o   By email, where our emails are encrypted, which protects both incoming and outgoing mail from intrusion;

o   By USPS, first class or for large packages, by priority mail;

o   By Fax, which is sent electronically, by encrypted email services, and is received into our office by the same secure electronic means; or

o   In-office pick-up in certain office locations.

Everyone feels displaced right now, but at Thomas-Walters Probate and Estate Planning, we are determined for you to find certainty in uncertain times, knowing you can rely on us.  We’re going to get through this together, and even though the world feels upside down right now, with Attorney Stacey Walters by your side, you can face the future with the perfect plan and peace of mind.  

https://www.usatoday.com/story/news/2020/04/03/americans-scramble-file-and-update-wills-amid-coronavirus-spread/2939153001/

What Kind of Estate Planning Attorney Do You Really Want?

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You’ve heard the saying, “Lawyers are a dime a dozen” and it is true! With so many lawyers out there, it is important to know what to look for in a good estate planning attorney. Here are five key points to consider when searching for a lawyer that’s best for you:

1. Connection: You should always feel personally connected to the lawyer you are working with. An attorney that will take the time to find out what is important to you and one that will keep your best interests in mind is essential. You must be 100% certain that your concerns and wishes are understood and that they will be adequately addressed in your estate plan.

2. Professional: It should go without saying that professionalism is an indicator of the final product. If you do not feel that the firm you are working with is acting on all levels in a professional manner, then your estate plan may reflect that. You want to work with someone that will be thorough and go the extra mile to ensure nothing is overlooked.

3. Value: Everyone is looking for the best product at the best price, but be careful! What you end up with may actually be a bad product with a great price. It is imperative that you understand the value you are getting for your money. If your lawyer isn’t willing to explain the tremendous significance that their services and estate plan holds, then run the other way.

4. Cost: Lawyers can be very mysterious about costs because most law firms bill by the hour. If the lawyer is unwilling to give you the bottom line cost, then that is a sure sign there will be surprises with the price tag later on. When it comes to estate planning, your lawyer should be clear and up front as to what the exact cost of their services will be. Be sure to get it in writing.

5. Guarantees: Many people procrastinate in developing an estate plan primarily because they are fearful that life developments and law changes will require them to invest more money into reworking their original plan. While there are not many firms that guarantee future changes with no additional fees, the Lifetime Lawyer Program offered by Thomas, Walters, PLLC guarantees that all future modifications will be made at no extra cost.

The secret of successful estate planning is with Thomas, Walters, PLLC. Our personable and professional service, along with our straightforward approach in handling client’s estates for a lifetime are valuable in developing and maintaining customer satisfaction. Experience it for yourself by registering for a free informational seminar at www.twestateplanning.law or simply call (888) 787-1913.

3 Reasons Why It’s Important to Have a Trust

I was talking with a woman recently about estate planning. She wanted to know if she needed a will even if she had a trust in place. I then asked her if she knew what would happen, if she died with an asset in her name that was not in the trust. Her eyes got really big and she swallowed hard as she realized the entire goal of her trust would be thwarted if that happened!

Many people in North Carolina have a revocable living trust for the following three reasons.

* To prevent their assets from being frozen upon their death.

* To eliminate the timely and expensive probate process.

* To ensure there is a smooth and quick transfer of assets to their loved ones after they are gone.

With a revocable living trust, as long as all of the necessary assets are properly titled in the name of the trust, the costs of lengthy probate proceedings can be completely avoided. However, should you acquire an asset that is in your name and you neglect to title it in the name of the trust, then that asset will be frozen and probate will be required to transfer it to the appropriate heir.

To learn how to establish a revocable living trust and title your assets the right way to enable your heirs to avoid probate, contact Thomas Walters, PLLC at (888) 787-1913 to schedule a complimentary consultation. Or consider attending a Thomas Walters, PLLC, educational seminar by going to www.twestateplanning.law for more information.