Estate Overview

It may be the most important term you may not fully understand. This can leave you and your family open to disaster down the road.

"Estate" is a term commonly used to denote the sum total of all types of property owned by a person at a particular time, usually upon their death (or incapacity). It may be better to think of an estate is a legal entity, or "thing,” that springs into being upon the death of a person.

It makes sense, because, generally, a deceased person cannot by law deal with property. This means they cannot own property, be indebted, and give property away. It is the deceased person's "estate" that assumes these roles and responsibilities.

What can an estate plan do for you?

In the most straightforward aspect, it determines what happens to your property.

• Who’s in charge. Estate planning specifies who will handle your estate; such as the executor of a will, also known as a personal representative, or the trustee of your trust.
  
• Avoid probate. Structured properly, an estate plan can allow your estate to avoid probate, which will allow your property to pass to your beneficiaries without the oversight of the Clerk of Court in your North Carolina county. It also saves your family from filing fees and delays in transferring property.
  
• Provide for charitable giving. If you want to serve the greater good through donation, an estate plan can ensure your wishes are carried out.
  
• Plan for incapacity. The use of advance directives, such as durable and healthcare powers of attorney, living wills and final directives will ensure you receive the care you want, or don't want.
  
• Plan for business’ future. Estate plans are more than just for the family, they protect the legacy of your business, providing for the proper disposition of business ownership interests.