By Cowles Liipfert If you die without a Will and you are a resident of North Carolina, the assets owned by you personally on the date of death (i.e., not owned jointly with someone else who has survivorship rights), and not including assets payable to a named beneficiary at your death, will pass under the North Carolina Intestate Succession Act. (If a person dies with a Will, he or she is said to have died “testate;” without a Will, he… Read More
By Cowles Liipfert “Irrevocable” trusts in North Carolina often may be modified or even terminated under Article 4 of Chapter 36C of the North Carolina General Statutes. Some terminology used in the article includes: (a) The trust “Grantor” is the person who creates the Trust; (b) The “Trustee” is the person or corporate fiduciary who manages the Trust; and (c) The “Beneficiary” is the person or group of individuals or entities for whom the trust has been created. Irrevocable Trusts… Read More
By Cowles Liipfert A Power of Attorney is a legal document in which a person (the “Principal”) gives someone else (the “Agent”) the power to act on behalf of the Principal as set forth in the Power of Attorney, perhaps doing things such as writing and signing checks, or even signing deeds or tax returns. A Power of Attorney may also include the authority to do many other things, and not merely basic functions. We highly recommend that all adults… Read More
By Cowles Liipfert There are several different types of irrevocable trusts––mostly known by four-letter words––which we will describe very briefly (and superficially) below, and if you need to know more information about any of them, you will need to consult further with an estate planning professional. 1. Irrevocable Life Insurance Trust (ILIT) If a life insurance policy is owned by the insured and is payable to named beneficiaries at death, the full death benefit is included in the taxable estate… Read More
By Cowles Liipfert Want to make gifts for certain medical or educational expenses? Gifts may be made for these purposes, separate and apart from annual exclusion gifts for gift and GST tax purposes, but there is a separate set of rules which apply to these gifts. Under Section 2503€ of the Internal Revenue Code, tuition payments made directly to an educational organization on behalf of an individual are not treated as taxable gifts for gift tax purposes. Also, certain qualifying… Read More
By Cowles Liipfert If a US citizen or resident is married to a non-citizen, even if the non-citizen spouse has been a US resident for many years, the transfer of assets at the death of the US citizen or resident spouse to the non-citizen will not qualify for the estate tax marital deduction. Due to the high estate and gift tax exemptions which are now in effect for the estates of US citizens and residents ($11.4 million in 2019, indexed for… Read More
By Cowles Liipfert Many people are unfamiliar with gift taxes. Here are some of the basics: If you receive a gift you don’t owe tax, and you don’t have to report the gift as income. The recipient of a gift doesn’t owe gift tax or income tax and does not have a reporting requirement. Gift taxes are the responsibility of the donor. Except for the ones to charitable organizations, gifts are not deductible by the donor. Not all gifts are… Read More
By Cowles Liipfert If you or a loved one is living with a chronic illness, such as Parkinson’s, multiple sclerosis or Alzheimer’s, it is important that the necessary persons have their estate planning documents in place and that they address the likely issues which may arise due to the chronic illness. It has been estimated that about 157 million Americans are living with chronic illnesses, and also that about nine million cancer survivors are living with side effects from their… Read More
By Cowles Liipfert A Power of Attorney is a legal document in which a person (the “Principal”) gives someone else (the “Agent”) the power to act on behalf of the Principal as set forth in the Power of Attorney, perhaps doing things such as writing and signing checks, or even signing deeds or tax returns. Those documents can also include the authority to do many other things, and not just basic functions. If the Principal becomes incapacitated, the Agent’s authority… Read More
By Cowles Liipfert You should try to provide for every contingency in your will, even if unlikely to happen. The wills for a married couple often leave their assets to the other spouse if living, or in the alternative to, someone else if the other spouse is not living. For example, a simple will frequently leaves the testator’s estate to his or her spouse, if living, and if not living, to the children of the testator, either outright or in… Read More
