Planning for the Inevitable

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Planning for the Inevitable: A Guide to Protecting Your Family’s Future

Discussing our own mortality is a topic most of us avoid. Yet, as Benjamin Franklin famously quipped, nothing is certain except death and taxes. While we talk about taxes all the time, planning for the inevitable is an act of love that can protect your family from unnecessary stress, expense, and conflict. With a proper plan, you can ensure your legacy is passed on to the people you choose, in the way you want, and when you want.

The High Cost of Having No Plan

Over half of all people do not have basic legal documents in place, placing a tremendous burden on their families during a crisis. Without a plan, you leave critical decisions up to the state and the courts.

  • Incapacity Leads to Guardianship: If you become unable to make decisions for yourself without a Power of Attorney, your loved ones must petition the court for a guardianship. This public, expensive, and time-consuming process can be easily avoided.
  • No Will Means the State Decides: If you die without a will (intestate), North Carolina law dictates who inherits your property. Contrary to popular belief, your spouse does not automatically receive everything. Your assets could be divided between your spouse and your children, which may not be what you intended.

Advanced Planning with Trusts

While foundational documents are essential, many families can benefit from the more robust protection offered by a trust. Trust-based planning allows you to avoid the public and costly process of probate court. For example, a $1 million estate in North Carolina could incur roughly $6,000 in probate fees alone, an expense that a trust can eliminate for far less cost.

Trusts are particularly powerful for:

    • Families with significant assets or real estate in more than one state.
    • Blended families and second marriages.
    • Providing for loved ones who have special needs.
  • Protecting an inheritance from a child’s potential divorce or creditors.

The Final Gift: Planning Your Arrangements

One of the kindest things you can do for your family is to plan your final arrangements in advance. This removes the burden of making difficult decisions during a time of grief.

A pre-paid funeral plan, structured as an irrevocable life insurance policy paid to a funeral trust, is often the best approach. It allows for flexibility and, importantly, an irrevocable funeral plan (up to a certain limit) is an exempt asset for government benefit eligibility, which is a key consideration in planning for Medicaid or Special Assistance.

In addition, leave your family written instructions for your service, and consider writing your own obituary. This is your opportunity to share what was most important to you and is a final, meaningful gift to those you leave behind.

A comprehensive plan for your estate and legacy considers all these factors, ensuring every piece works together to protect your family. Call our office at (919) 256-7000 to schedule a consultation.