THE LAW CORNER Basics of Estate Planning

Intestate Succession Spouses Share No child or lineal descendant or parent entire estate both real and personal property No lineal descendant but parent survives ½ interest in real property, first $50,000 plus ½ balance of personal property Spouses Share No child or lineal descendant or parent entire estate both real and personal property No lineal descendant but parent survives ½ interest in real property, first $50,000 plus ½ balance of personal property

Intestate Succession One child or lineal descendant Spouse takes ½ interest in real property, first $30,000 plus ½ balance of personal property More than one child or lineal descendant Spouse takes 1/3 interest in real property, first $30,000 plus 1/3 balance of personal property One child or lineal descendant Spouse takes ½ interest in real property, first $30,000 plus ½ balance of personal property More than one child or lineal descendant Spouse takes 1/3 interest in real property, first $30,000 plus 1/3 balance of personal property

Intestate Succession Share of Others Decedent's lineal descendants Per capita at each generation B takes 1/3; D, E, and F take 2/9 Share of Others Decedent's lineal descendants Per capita at each generation B takes 1/3; D, E, and F take 2/9 DecedentW A B E F D C

Intestate Succession To parents if no child or grandchild To parents if no child or grandchild W takes ½ interest in real property, plus the first $50,000 of personal property and ½ any excess. The balance goes to M. W takes ½ interest in real property, plus the first $50,000 of personal property and ½ any excess. The balance goes to M. M F W Decedent

Basic Estate Planning Basic Estate Planning Package: 1. North Carolina Will & Testamentary Trust OR Revocable Trust/Pour-Over Will 2. Living Will 3. Financial Power of Attorney 4. Health Care Power of Attorney Basic Estate Planning Package: 1. North Carolina Will & Testamentary Trust OR Revocable Trust/Pour-Over Will 2. Living Will 3. Financial Power of Attorney 4. Health Care Power of Attorney

THE LIVING WILL Do you want life-sustaining treatments or procedures administered to you if you are in a terminal and incurable condition or a persistent vegetative state? It is called a "living will" because it takes effect while you are still living. Do you want life-sustaining treatments or procedures administered to you if you are in a terminal and incurable condition or a persistent vegetative state? It is called a "living will" because it takes effect while you are still living.

THE LIVING WILL A North Carolina living will goes into effect when: 1) your doctor has a copy of it, 2) your doctor has decided that you are no longer able to make your own health decisions, and 3) your doctor and another doctor have determined that you are in a terminal and incurable condition or a persistent vegetative state. A North Carolina living will goes into effect when: 1) your doctor has a copy of it, 2) your doctor has decided that you are no longer able to make your own health decisions, and 3) your doctor and another doctor have determined that you are in a terminal and incurable condition or a persistent vegetative state.

THE LIVING WILL Defining “life-sustaining treatments or procedures” These are treatments or procedures that are not expected to cure your terminal condition or make you better. They only prolong dying. Examples are mechanical respirators, which help you breathe, kidney dialysis, which clears your body of wastes, and cardiopulmonary resuscitation (CPR), which restores your heartbeat. Defining “life-sustaining treatments or procedures” These are treatments or procedures that are not expected to cure your terminal condition or make you better. They only prolong dying. Examples are mechanical respirators, which help you breathe, kidney dialysis, which clears your body of wastes, and cardiopulmonary resuscitation (CPR), which restores your heartbeat.

THE LIVING WILL Defining “terminal and incurable condition” A terminal and incurable condition is defined as a condition for which the administration of medical treatment will only prolong the dying process, and without administration of these treatments or procedures, death will occur in a relatively short period of time. Defining “terminal and incurable condition” A terminal and incurable condition is defined as a condition for which the administration of medical treatment will only prolong the dying process, and without administration of these treatments or procedures, death will occur in a relatively short period of time.

THE LIVING WILL Defining “persistent vegetative state” A persistent vegetative state means that a patient is in a permanent coma or state of unconsciousness caused by illness, injury or disease. The patient is totally unaware of himself, his surroundings and environment and to a reasonable degree of medical certainty, there can be no recovery. Defining “persistent vegetative state” A persistent vegetative state means that a patient is in a permanent coma or state of unconsciousness caused by illness, injury or disease. The patient is totally unaware of himself, his surroundings and environment and to a reasonable degree of medical certainty, there can be no recovery.

POWER OF ATTORNEY What is a Power of Attorney? Gives one person the full power and authority to represent another person. Principal, Agent (attorney-in-fact) and fiduciary duties. Must be signed by both the agent and the principal, be witnessed by two people and signed in the presence of a Notary Public. What is a Power of Attorney? Gives one person the full power and authority to represent another person. Principal, Agent (attorney-in-fact) and fiduciary duties. Must be signed by both the agent and the principal, be witnessed by two people and signed in the presence of a Notary Public.

POWER OF ATTORNEY Two kinds of Power A General Power of Attorney covers all of your legal, financial and personal decisions except those pertaining to your medical care and treatment. A Limited Power of Attorney only covers decision-making in areas that you specify. Two kinds of Power A General Power of Attorney covers all of your legal, financial and personal decisions except those pertaining to your medical care and treatment. A Limited Power of Attorney only covers decision-making in areas that you specify.

POWER OF ATTORNEY When do they become effective? Immediately. A Durable Power of Attorney-even in the event you become mentally unable to make decisions on your own (incompetent). A Springing Power of Attorney-only in the event you become incompetent. When do they become effective? Immediately. A Durable Power of Attorney-even in the event you become mentally unable to make decisions on your own (incompetent). A Springing Power of Attorney-only in the event you become incompetent.

HEALTH CARE POA Gives broad powers to make health care decisions, including mental health treatment decisions, for you. This power includes the power to authorize routine medical tests, scans or surgery, admit you to a facility and administer medications. This power exists only when you are unable to give informed consent and will allow timely permission and consent so proper care can be received. Gives broad powers to make health care decisions, including mental health treatment decisions, for you. This power includes the power to authorize routine medical tests, scans or surgery, admit you to a facility and administer medications. This power exists only when you are unable to give informed consent and will allow timely permission and consent so proper care can be received.

HEALTH CARE POA It may be activated if a person is temporarily unconscious, confused or unable to communicate medical desires. Must be mentally competent and of sound mind when signing. Utmost confidence in your designated person. It may be activated if a person is temporarily unconscious, confused or unable to communicate medical desires. Must be mentally competent and of sound mind when signing. Utmost confidence in your designated person.

NORTH CAROLINA WILL The Benefits of a Will You chose the executor, preferably two. You dictate funeral arrangements. You provide general and specific gifts. You make plans that benefit you, your family and the organizations and causes in which you care deeply. The Benefits of a Will You chose the executor, preferably two. You dictate funeral arrangements. You provide general and specific gifts. You make plans that benefit you, your family and the organizations and causes in which you care deeply.

NORTH CAROLINA WILL The Benefits of a Will…continued You can reduce or even eliminate estate taxes and save taxes in a survivor's estate. You can also create trusts to provide for your spouse, your children and other loved ones. You name a guardian (caretaker) for your children and a trustee (who distributes assets for children until they are mature and capable of making their own financial choices). The Benefits of a Will…continued You can reduce or even eliminate estate taxes and save taxes in a survivor's estate. You can also create trusts to provide for your spouse, your children and other loved ones. You name a guardian (caretaker) for your children and a trustee (who distributes assets for children until they are mature and capable of making their own financial choices).

MORE ABOUT WILLS HOW TO REVOKE Subsequent instrument Physical act, i.e. burn, tear, destroy Operation of Law-Divorce or annulment; changes only provisions for spouse. HOW TO CHANGE Codicils Same formalities HOW TO REVOKE Subsequent instrument Physical act, i.e. burn, tear, destroy Operation of Law-Divorce or annulment; changes only provisions for spouse. HOW TO CHANGE Codicils Same formalities

THANK YOU! The Law Corner Brian S. Demidovich 211 E. Six Forks Road Suite 209 Raleigh, North Carolina Tel: (919) Fax: (919) Web: The Law Corner Brian S. Demidovich 211 E. Six Forks Road Suite 209 Raleigh, North Carolina Tel: (919) Fax: (919) Web: