Does the state get all my assets if I do not have a will?

No. Generally, state will only get someone’s assets if they are not survived by heirs or next of kin (the property then “escheats” to the state). Otherwise, if a deceased person does not have a will, the estate will be divided as the North Carolina laws of intestate succession dictate. This distribution scheme is often at odds with the actual goals one may have for providing for surviving spouses and young children.

Does the state get my children if I do not have a will?

A last will and testament enables its maker to dictate which person or persons will act as legal guardian for minor children in the event of the parents’ death. Failure to have such a provision in place can result in court proceedings before the Clerk of Court to appoint guardians. Such a situation can be time consuming and expensive and carries the potential for disputes among family members.

What does an executor do?

An Executor (also known as “Personal Representative”) is the person or institution (if you name a bank) with legal authority to administer a person’s estate. Very simply, this is the person who will determine what your assets are, determine what your outstanding financial obligations are (and pay them from your estate), and distribute the net estate to the persons entitled (whether under your will or under NC law) to receive it.

What does a trustee do?

A trustee is a person or institution (such as a bank) who holds property for the benefit of a third party (such as young children). The trustee is a “fiduciary”, which means that he or she must hold the trust property and protect its assets until such time as the trust terminates and the remaining property is distributed outright to its beneficiaries. In the meantime, the trustee must use prudence and discretion in investing the funds or property and in making distributions from the trust to or on behalf of its beneficiaries.

What does a power of attorney do?

A power of attorney is a document wherein its maker (the “principal”) nominates another person (and any number of successors or alternates) to act as an agent upon his or her behalf for the purpose of handling business and financial transactions. A power of attorney is effective only while the principal is living and ceases to be effective upon the principal’s death. A power of attorney enables the person you designate to step into your shoes and manage your financial and business affairs in the event you are unable to handle your own affairs. It is also recommended that individuals execute a separate power of attorney for health care decision making. A health care power of attorney enables your agent to make your health care decisions in the event you cannot make your own decisions.

Q. What do you think about the will/trust computer programs that you can pick up at office supply stores or forms from the internet?

These programs may not have been developed by a professional licensed to practice in your state. Additionally, the program may not be updated to take into consideration the most recent changes to a state’s laws as they affect wills, trusts, and estate planning. Finally, the computer program may not be designed to ask certain questions and identify unique situations that expose critical planning issues and prevent additional work and legal fees that can result from poor planning.