| Estate Planning > Providing
For Incapacity Providing for incapacity Protecting and providing for your family is just
one aspect of an estate plan. Providing for your subsequent mental
or physical incapacity is also an important part of any estate plan.
This includes the appointment of an attorney-in-fact to handle your
legal and health care decisions. Without an attorney-in-fact, upon
your incapacity your family would be forced to seek a court appointed
guardian to handle your affairs. A guardianship proceeding can be
both costly and time consuming. Another option is the formation
of a living trust which holds your assets and allows a trustee to
step in and manage your assets upon your incapacity. What is
a Durable Power Of Attorney? North Carolina permits a person
to appoint an attorney-in-fact to act on behalf of the person and
deal with his or her property even though the person may subsequently
become incapacitated or incompetent. The power of attorney may be
drafted very broad or it may be limited in its scope. A durable
power of attorney is not cancelled by your subsequent incapacity,
thus eliminating the necessity for a guardianship proceeding in
most situations. However, at your death a durable power of attorney
terminates. What is
a Health Care Power Of Attorney?  In North Carolina, a properly
drafted Health Care Power Of Attorney (“HCPA”) permits
a person to designate an agent to make health care decisions for
the principal if the attending or designated physician determines
that the principal lacks the capacity to make or communicate his/her
own health care decisions. The principal may provide instructions
to the agent through the HCPA including the principal's desire regarding
life-sustaining procedures. What is a Living Trust? A Living Trust is a revocable trust which allows you to provide
instructions for the disposition of your assets during your life,
upon your incapacity, and upon your death. Since you can name yourself
as trustee of your trust, you maintain control and are able to do
the same thing you could before. Both spouses can be named as co-trustees
so that if one becomes incapacitated, the other spouse is able to
manage the trust property. You can also name an institution such
as a bank or trust company as a trustee or co-trustee which adds
the benefit of a professional to manage your assets and investments. A Living Trust can be modified at any time, thus allowing flexibility
for future changes. However, this power causes the assets of the
trust to be included in the creator's taxable estate thus creating
potential federal and state tax liability. Does a Living Trust help avoid probate?
Unlike a Will, a Living Trust does not need to be probated at your
death, thus you are able to avoid the costs and time of probate
while still providing for your loved ones.
For assistance,
contact our firm for an appointment or Email
David
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