wilmingtonbiz.comGreater WilminGton Business Journal August 19 - September 1, 2022 Page 17 ESTATE PLANNING Sponsors’ Content InsightsOn MICHAEL BECKER RountreeAttorney, Losee DEAN DirectorDELLARIAofMarketing & Sales, Liberty Senior Living KARA Partner,GANSSMAN Cranfill Sumner, LLP RUSSELL NUGENT Of Council, Humphries Law Firm
910.815.3122
Over the last several months, many have watched and worried as inflation has reached 40-year highs. In addition, concerns remain over the economy and conflicts around the globe.
WORRY FREE LIFESTYLE FOR RESIDENTS AND THEIR FAMILIES: Liberty Senior Living is proud to have two retirement communities located in Wilmington; Brightmore of Wilmington and Carolina Bay at Autumn Hall. In addition, we are also constructing an Active Adult Community – Inspire Brunswick Forest scheduled to open in 2023. Saving money is just one of the many benefits to living in our communities which feature a wide range of great amenities. For more information or to schedule a private tour of one of our communities, visit LibertySeniorLiving.com.
LibertySeniorLiving.com
MAINTENANCE FREE LIVING: Another downside to home ownership can be the unexpected surprise of having to deal with maintenance costs. Whether scheduled or unscheduled, paying for maintenance and upkeep is never a fun thing to do. Residents in our communities receive weekly housekeeping services; maintenance and landscaping is also included. Plus, emergency response services and onsite security are provided.
PREDICTIBLE COSTS: While there may be annual changes to your monthly fees to cover the rising costs across the marketplace, our decades of experience during times like this is important. We know what it takes to operate our business successfully and with the buying power that we can achieve due to the size of our organization, we are able to better control and minimize costs.
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DEAN DELLARIA Director of Marketing & Sales Liberty Senior Living Dean Dellaria is the director of marketing and sales at Liberty Senior Living. Liberty Senior Living communities offer residents a state-of-the-art home-like setting, assistance with activities of daily living and an abundance of activities for promoting physical, mental, social, educational and spiritual wellbeing. Liberty Senior Living also provides ancillary services including home health, hospice, in-patient short-term rehabilitation, long-term care, and outpatient services to residents in many of our communities, as well as seniors living outside of our communities. For more information, visit libertyseniorliving.com
PROACTIVE STRATEGY FOR HEALTH CARE: Having a plan is a great way to minimize risk and ensure everyone’s interests are protected. While we offer a variety of living options in our portfolio from independent living, assisted living, long-term care, short-term rehabilitation or memory care, choosing a community that offers all of the above in one location is a great way to make sure you have a plan in place no matter how your needs may change in the future.
The good news is the real estate market still remains strong with high home values and sales taking place in quick fashion. Now is a great time to consider a move to a retirement community. In fact, there may not be a better time to make a move. From just a financial perspective, living in a retirement community allows for more flexibility. Additionally, the many physical, social and emotional benefits that come from living in a retirement community can have a significant impact on an individual’s sense of well-being.Considering the fact that, in study after study, people who report higher levels of social and emotional well-being actually have higher levels of physical health, which equates to lower costs for health care, it is easy to see why living in a retirement community can be an effective strategy for risk-avoidance. Minimizing risk is a tried-and-true method for protecting those hard-earned funds in the old bank account. There are many other reasons why living in a retirement community makes solid financial sense (and cents): FREES UP HOME EQUITY: We have all heard of the phrase “buy low, sell high” Selling your home now where you can achieve high profits allows for you to put that earned equity into something that can be used to generate income, travel or invest wisely in the market to take advantage of the opportunities that exist. This makes rental model retirement communities extremely attractive compared to communities that require you to pay a substantial entrance fee upon move in.
WHY RETIREMENT COMMUNITIES MAKE SOLID FINANCIAL SENSE
WHAT IS THE PURPOSE OF A WILL? A Will, short for “Last Will and Testament,” is a document that explains your wishes after death. Primarily, Wills focus on the distribution of property –who gets what, how much, and so on. However, a Will also can be used to express your wishes about care for minor children, as might be the case for young parents.
MICHAELRountreeAttorney,BECKERLoseeLLP
CAN A WILL BE REVOKED OR MODIFIED? A Will can be changed at any time before your death, as long as the new document meets all of the qualifications for a valid Will as outlined above. A Will can also be revoked completely by physically canceling, destroying, burning, or tearing up the document. This must either be done by the Testator, or by somebody else in the Testator’s presence and under the Testator’s direction.
P roper estate planning includes the creation of multiple documents including a Last Will and Testament. A Last and Will and Testament is important for making sure that your loved ones are taken care of after your death, and that your wishes are followed when it comes to distributing your property and other assets.
• The Testator must have the testamentary intent to create and sign their Will.
• The Testator must know what they own (sometimes known as their “natural bounty”).
Holographic Wills are wills written completely in the Testator’s own handwriting and Nuncupative Wills are oral wills made right before the Testator’s death.While North Carolina recognizes Holographic and Nuncupative Wills, an Attested Will is the best way to make sure your wishes are followed through.
Mr. Becker provides experienced advice to the clients of Rountree Losee with an emphasis on Estate Planning, Estate Administration, and Trust Administration. Prior to joining Rountree Losee, Mr. Becker has practiced in the areas of Tax Controversy and Elder Law. While practicing Tax Controversy, Mr. Becker negotiated with the In ternal Revenue Service and North Carolina Department of Revenue to achieve resolutions for his clients. With his experience in tax law, Mr. Becker switched his area of focus to Elder Law. While practicing Elder Law, Mr. Becker assisted clients in preparing their estate plans to ensure their assets were protected from potential creditors, such as a nursing home or Mr.Medicaid.Beckerislicensed to practice in North Carolina, South Carolina, and Tennessee. He is excited to take his years of experience to the clients of Rountree Losee to assist them with their Estate Planning needs.
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• At least two witnesses must sign a North Carolina will. Each witness must sign in front of the testator, after the Testator signs the document.
WHAT IS A LAST WILL AND TESTAMENT?
WHAT DOES IT TAKE TO CREATE A VALID WILL IN NORTH CAROLINA? In North Carolina, there are three types of wills: Attested Wills, Holographic Wills, and Nuncupative AnyoneWills. can create a valid Attested Will in North Carolina, as long as it meets a few basic requirements:
• The Testator must sign the document or be signed for them by another under the Testator’s direction and in the Testator’s presence.
WHAT HAPPENS IF I DIE WITHOUT A WILL? If you die without a will, you will be considered to have died “intestate.” This means that there are no instructions on how to dispose of your property when you die, and your assets will be distributed pursuant to the laws of North Carolina. When assets are distributed pursuant to the laws of North Carolina, your assets may be distributed in a way you never Creatingintended.aWillprior to your death will ensure your assets are distributed in the manner you intended them to be distributed with minimal conflict among family and other beneficiaries.
• The person creating the will (also known as the “Testator”) must be 18 years of age or older.
• The Testator must have the testamentary capacity to sign their Will.
• Review Beneficiary Designations: Assets like retirement accounts and life insurance policies allow beneficiaries to be named so that those assets could pass outside of an estate or directly to others. Consider naming contingent beneficiaries or whether an estate should receive those funds to pay off personal debt.
• Structuring Business Debt: Structuring a business as an LLC or a corporation, in lieu of a sole proprietorship, may limit whether a decedent’s estate assets are required to satisfy business debt.
Kara Gansmann devotes her entire practice to elder law and estate planning in the Wilmington office of Cranfill Sumner LLP. In private consultations, Kara counsels individuals and families on tactics for estate planning, asset protection, and longterm care planning. Kara drafts Wills, Powers of Attorney, and Trusts, including Pet Trusts, Revocable and Irrevocable Living Trusts, and Special Needs Trusts. Kara also advises clients on eligibility for public benefits like Veterans’ Aid & Attendance and prepares applications for Medicaid and Special Assistance. As a possible recession looms over the American economy, financial planners often tout the same advice: reduce debts and cut spending. That advice resonates with estate planning attorneys too. The simple reason is that reducing debts can impact a decedent’s estate administration and ultimately what heirs may inherit. With estate planning attorneys, clients often inquire whether a Trust or a Will, which would pass assets through probate, is more beneficial. The legal discussion centers on the person’s assets, their goals for their estate and heirs, and also personal debt. With a Will or Trust, both require creditors to be paid before beneficiaries receive anything. Both instruments can be drafted with specific instructions for certain assets.
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SIMPLIFYING AN ESTATE BY LIVING & DYING DEBT-FREE
One advantage of probating a Will is that a Personal Representative is required to notify creditors to bring claims against the estate for outstanding debt within a certain period of time; creditors who do not file claims within that time frame are out of luck. Personal Representatives have significant responsibility to follow the law in handling estate assets and paying valid claims properly and in the correct order. Ultimately a solvent estate can pay debts and expenses, often leaving assets for heirs to inherit. However, an insolvent estate may not have sufficient assets to pay off all of the debts, leaving nothing for the heirs to inherit.
• Create an Estate Plan: Work with an attorney on developing an estate plan. In a Will or Trust, instructions can be written so that some specific gifts may pass to heir, allowing other assets to satisfy debts. Allocating gifts based on percentages versus a specific dollar amount is helpful in ensuring the heirs may receive even a small portion of an estate.
• Consider joint ownership of assets: Sometimes, joint ownership of an asset like real estate is one way to avoid passing an asset through an estate, passing any related debt to the surviving owner. The bottom line is that reducing debt during life maximizes the gifts for heirs. And while caskets don’t have pockets, creditors do; and creditors will look to an estate to satisfy outstanding personal debt. Planning intentionally for outstanding debt is the responsible thing to do in life and in death.
• Pay off and reduce debt during life: Financial experts tout the pay-offs of reducing debt. That fiscal responsibility allows heirs to inherit more and eases the burden of administration on a Personal Representative.
• Purchase a life insurance policy to cover expected debt: Plan with an adviser to purchase a policy that will adequately satisfy debts and any other goals. Naming the proper beneficiary of the policy is key to whether that policy will pay off personal debts or pass directly to others.
HOW TO MINIMIZE DEBTS TO SIMPLIFY AN ESTATE:
KARAPGANSSMANartner 910-777-6000 www.cshlaw.com
Another issue is to decide what happens if someone in a group or class of heirs passes away before the others. For example, you might leave all of your estate to your three kids, but what happens if one of your children passes away before you and they are still named in your Will? There are of course a few options here, but the two most popular are to give the deceased child’s share to their siblings or to the deceased child’s children, if any. As usual, it is important to think about the details. In addition, a Will usually plans for the transfer of different types of assets. You do not need to list everything you own in your will in order to transfer your assets to your heirs. It helps to think of “specific bequests” before “general bequests.” For example, you might want certain person items to go to one person, but all your other assets to go to your spouse. After you have decided what specific bequests you might make, then think about where you want everything else to go. A will can name specific pieces of property and/or general categories of assets to be transferred to your heirs.
RUSSELL NUGENT Of-Counsel Russell is a native of Wilmington, North Carolina and has been practicing law in Eastern North Carolina since 2004. Russell attended the University of North Carolina at Chapel Hill. After passing the patent bar in 2003 and becoming a registered patent agent, Russell received his law degree from Georgetown in 2004. He began his legal career representing clients in personal injury matters and by 2009 managed a team of professionals for one of the country’s leading Plaintiffs’ attorneys, Greg Jones. In 2012, Russell left personal injury to provide patent prosecution services to law firms in China and Taiwan prior to joining The Humphries Law Firm in 2014.
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Estate planning can require some uncomfortable decisions and discussions that are easy to put off. However, a well thought out estate plan can make things much simpler on your heirs and can ensure that your assets go to the heirs you select. As a result, a good estate plan is well worth the effort.
WHAT DO I NEED TO KNOW BEFORE I MAKE MY WILL?
Generally, an estate plan starts with a discussion of where you want your assets to go after you pass away. Most people have a general idea of who they want to have their property after they pass away based upon their relationships and obligations, but they often do not have a very detailed plan for what would happen if those people were to pass away before or at the same time they do. A good way of looking at the issue is to decide who needs to predecease you before you do not really care who gets your assets and then pick a charity or some other group that you like to be the final recipient of your estate if everyone else is already gone.
Russell helps individuals and businesses protect their innovations, creations and business information using strategies based in patent, trademark, copyright and trade secret law. His work includes both strategic planning and dispute resolution. He assists clients who want to buy and sell businesses, register trademarks and patents, and license or transfer their intellectual property assets.
A Will can also arrange for the care of other people after your death. For example, it is common to leave assets that may go to minor children to a trust to be managed by a trustee of your choosing. You can also suggest a guardian or guardians for your minor children. The suggestion will be subject to Court approval in the end, but Courts pay attention to the people that parents select to care for their kids. Your Will also needs to name an executor – a person that you appoint to collect and distribute your assets after you pass. This person ideally has access to your assets or will be able to quickly take possession of them after you pass away. Be careful to avoid creating a situation where a lot of your assets will be in the possession of an heir that may not cooperate or work well with the Executor.
