Using Legal Documents to your Advantage

Legal documents like wills and powers of attorney are the fundamental tools for protecting your property and controlling your legacy. However, many people fail to use these tools to their full advantage because they don’t understand how the pieces of their plan—or lack thereof—fit together. With proper guidance, your legal documents can work in harmony to protect your family and ensure your wishes are carried out precisely as you intend.

The Foundational Document: Your Last Will and Testament

A will is the instruction manual for your estate, but it’s a common misconception that it trumps every other document. While a will is essential, it only controls assets that fall into your probate estate. Many assets pass to heirs through other legal means.

Furthermore, without a will, North Carolina’s intestacy laws will distribute your property in a way you may not expect. Many assume a surviving spouse inherits everything, but state law often divides the estate between the spouse and children, a result that can be avoided with a simple will.

Why Your Will Isn’t the Whole Story

Several types of property ownership and beneficiary designations will override the instructions in your will. It is critical to align these with your overall plan:

Joint Ownership: Property owned as “joint with right of survivorship” automatically passes to the surviving owner. This is common for homes and bank accounts, and your contract with the bank supersedes your will.
Beneficiary Designations: Life insurance policies and retirement accounts are distributed directly to the beneficiaries named on the contracts, regardless of what your will says.

Planning for Every Stage of Life

Your legal needs evolve over time, and your documents should reflect that.

For Parents with Young Children: A proper plan is the only way to name a guardian for your minor children and place their inheritance in a trust. Without these instructions, a court will make these critical decisions, and your children could receive their entire inheritance in a lump sum at age 18.
For Seniors: As you age, Powers of Attorney become the most important documents for maintaining independence. They allow you to choose a trusted agent to make decisions if you are unable. Without them, your family would be forced into a public and expensive guardianship proceeding.

The Power of a Properly Drafted Power of Attorney

Not all Powers of Attorney are created equal. Most standard “statutory” forms provide limited authority, which is insufficient for the strategic moves needed for asset protection. To effectively plan for long-term care and preserve your life savings from the high costs of care, you need a robust, comprehensive Power of Attorney. This is a critical component when planning for long-term care benefits.

A truly effective comprehensive plan for your assets ensures that every document and every asset title works together to achieve your goals. Call our office at (919) 256-7000 to schedule a consultation.

Using Legal Documents to your Advantage