For Your Information

Frequenty Asked Questions

Question: What happens to my property if I die without a will?
Answer: The answer may surprise you! If you die intestate (without a Will), the state of North Carolina will determine who receives your property according to the laws known as the Intestate Succession Act. These default laws determine who inherits your property. The part that surprises many people is that these laws provide for your spouse and children to receive a share of both your real estate and other property. And if you have no children but are survived by a parent, the laws result in your spouse and parent sharing both the real estate and other property.

Question: What is probate?
Answer: Probate is the legal process in which a court oversees the distribution of the property owned by the person who passed away. This process is intended to ensure creditors are paid and property is distributed to those named in the Will or identified by the intestate succession laws of North Carolina.

Question: Who will care for my minor children if I die without a will?
Answer: If both parents are deceased, a judge of the court will determine who will serve as guardian of your children. Naming a guardian for your minor children in a Will is one of the most important things you can choose to do as a parent.

Question: Does a Will control all of my assets?
Answer: No. A Will does not control all assets. Assets that are jointly owned with another person, owned by a Trust, or have a person named as the beneficiary on the account or policy will not be controlled by your Will. Bank accounts, real estate and investment accounts are types of assets that are often jointly owned and are some of the assets that can be owned by a Trust. Life insurance, annuities, and retirement accounts, such as IRAs, Roth IRAs and 401Ks, are assets that commonly have a person named as a beneficiary.

Question: Even if an asset has a beneficiary designation, is it possible that my Will controls who the asset pays to at my death?
Answer: If you name your Estate as the beneficiary of an account or policy, your Will controls who will receive the asset at your death. In addition, if you forget to name a beneficiary or your beneficiary dies and you do not have a second choice designated as beneficiary, the insurance company or retirement account company may have a policy that identifies your Estate as the beneficiary. If that occurs, your Will controls who will receive that asset.

Question: If I have a Will or Trust, do I need to update the beneficiaries who are listed on my assets?
Answer: Yes. Making sure your beneficiary designations are up to date is very important because beneficiary designations trump your Will. In other words, the person named as a beneficiary on a beneficiary designation form will receive the money, even if your Will names another person. This is why it is so important to make sure your named beneficiaries coordinate with your Will or Trust.

Question: Where should I store my original Will and other estate planning documents ?
Answer: Your first thought may be to store your original documents in a safety deposit box. But did you know that, by law, banks are required to seal a safety deposit box after the owner’s death? Your family might even have to go to court to gain access to the box. It’s a headache that can be avoided. So where should you store your original documents? At home, in a secure but accessible location. A fireproof safe or lockbox is a great secure location. If you do not have a secure location available, you can simply keep them in a clearly marked file with other important papers until you are able to identify or purchase a secure location. Accessible is a matter of letting someone else know the documents are there and being sure the person has the key or combination to the secure spot or the information to gain access to the key or combination. It is a good idea to tell the location to more than one person and to tell the estate planning attorney who created the original documents.

Resources

www.secretary.state.nc.us/ahcdr - offers the opportunity to voluntarily register a copy of health care advance directives. Once a document is registered, it can be accessed over the internet by those with whom you share your access information.