Wake County Estate Planning Attorney

Why You Need to Include Trusts in Your Estate Plan

Trusts are useful estate planning tools because when combined with a will, they ensure that specific directions you have regarding funds and property are followed after you pass away. Unlike a will, trusts remain private after your death, and the assets placed within them will be protected from probate. Although larger estates can be subjected to costly estate taxes, assets that have been placed in trusts are excluded from estate valuations.

Trusts also offer greater flexibility and control than wills because you have the option to “trigger” the transfer of assets once certain conditions have been satisfied. Specifically designed trusts can also facilitate the planning goals of special needs individuals and other circumstances that require careful management of financial assets.

Why You Need Healthcare Directives and Powers of Attorney in Your Estate Plan

It is important to have a detailed plan in place for how your affairs will be handled if you suddenly become incapacitated. If you are ever in a situation where you are unable to communicate due to an injury or illness, then someone else will need to make critical and urgent decisions about the type of medical care you receive and how your financial affairs should be managed.

Powers of attorney are used to name a representative you trust who will make these decisions on your behalf. Powers of attorney become effective as soon as you sign the document. Under a power of attorney, the arrangements you make with the representative must be respected if you become incapacitated. Medical powers of attorney cover decisions involving healthcare, while financial powers of attorney vary in scope and include specific responsibilities that you define.

The Importance of Updating Your Estate Plan

Creating an estate plan is an important step in protecting your assets and ensuring that your loved ones are taken care of after your passing. However, it's equally important to make sure your estate plan is up-to-date and reflects any changes in your life circumstances or assets. At Oak City Estate Planning, we recommend reviewing and updating your estate plan at least every three to five years or after any major life events such as marriage, divorce, or the birth of a child.

Here are a few reasons why updating your estate plan is crucial:

• Changes in family structure: If you've recently gotten married, divorced, or had children, it's important to update your estate plan to reflect these changes and ensure that your assets are distributed according to your wishes.
• Changes in assets: If you've acquired new assets or sold existing assets since your last estate plan update, it's important to make sure these are included in your plan and distributed according to your wishes.
• Changes in tax laws: Tax laws are constantly changing, and it's important to make sure your estate plan is structured in a way that minimizes tax liabilities and takes advantage of any available tax breaks.

At Oak City Estate Planning, our experienced attorneys can help you review and update your estate plan to ensure it reflects your current wishes and protects your assets. Contact us today to schedule a consultation.