6 Secrets to Stress Testing Your Estate Plan

An Introduction to Living Wills by Experienced Raleigh Attorney, Stephen Stewart

Stephen Stewart of Stephen P. Stewart Law in Raleigh, NC has been working with individuals and families to set up living trusts for over twenty-five years. He explains the basics of what a living trust is, the process of setting one up, and why it is important.

Understanding the Basics of a Living Trust

A living trust, also referred to as an “inter vivos trust”, is a legal document that covers how an individual’s assets should be handled prior to and after their death. The individual who makes the trust is known as the settlor or grantor, and the individual who manages the assets in the trust is called the trustee. A living trust is designed to provide for beneficiaries including a spouse, children or other named parties.

Setting Up a Living Trust

It is a two-step process to establish a living trust. Firstly, the trust agreement (deed of trust) needs to be created. This can be done yourself or, for peace of mind, a qualified living trust attorney can assist with the process. A specialized attorney is important if there are substantial assets, a business or a complicated estate that needs to be included in the living trust.

Funding a Living Trust

Once the trust has been created, the second step is to fund it. This requires the transfer of any assets that are to be included in the trust into the control of the trustee. Examples of assets that can be transferred include bank accounts, boats, real estate, stocks, bonds, antiques, and art and coin collections. If real estate is to be transferred, the property will usually need to be retitled, which is done by setting up a new deed for the property in the name of the trustee. For intangibles such as bank accounts and stocks, depending on the policies of the specific financial institution, account ownership will need to be transferred, or a new account opened in the name of the trustee.

Why a Living Trust is Important

For individuals with only a few assets, it may be that a will is sufficient to handle estate planning needs. A living will is a completely separate legal document designed to supplement, rather than replace a will. In certain circumstances, a living trust will provide additional benefits.

To Avoid Probate

Probate is the process by which assets are distributed based on the instructions left in a will and can take years to complete if the estate is extensive or if the will is contested. It can also be expensive as probate fees, attorney fees, and court costs mount up. A living trust means that probate for the assets held by the trust can be avoided which reduces expenses.

For Individuals with Young Children

With a living trust, a legal guardian and a conservator can be named. The conservator is not monitored by the court and allows for greater flexibility in deciding the age and conditions under which children have access to the trust.

If an Individual Becomes Incapacitated

In the instance where an individual is hurt in an accident or suffers a stroke that impairs mental ability, the trustee can continue to act on the individual’s behalf.

Working with a Living Trust Lawyer

 

When deciding on a living trust lawyer, find an attorney that specializes in this field. A living trust attorney will help set up the trust to maximize tax savings and limit costs as far as possible.

Attorney Stephen Stewart of Stephen P. Stewart Law in Raleigh, NC has been working in the area of living trusts for many years. With a B.S. in Accounting (cum laude) and a law degree followed up with a specialization in Taxation Law, he has both the experience and the education to ensure that your trust is tailored to your needs.

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Raleigh Estate Planning Lawyer Shares 4 Step Process for Developing a Digital Estate Plan.

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Stephen Stewart, attorney at Stephen P Stewart Law, shares his four-step process for developing a digital estate plan.
Stephen Stewart has practiced tax law and estate planning in North Carolina for over 25 years. One of the issues that he sees time and time again is the lack of digital estate planning which makes wrapping up a deceased estate complicated and difficult. While many people have their wills regularly updated, they often neglect to include their digital estate in the process. Stephen Stewart has seen first-hand, the dangers of this and suggests four steps to take to ensure that one’s digital affairs are in order.

1. Make a List of Digital Properties and Access Details

To get started, make a list of digital assets and how to access them including social media accounts, bank accounts and any payments that are managed online. To form a complete list, all hardware such as laptops, tablets, cameras, hard drives, and flash drives must be included.
Then make a list of all information that is stored electronically whether online, on a physical device, in the cloud, and listing any other intellectual property that is stored online.
Lastly, list all online accounts including websites and blogs, domain names, online storage, social media and email accounts.
The Digital Executor will need access to these properties, and the simplest way to do this is to save all of your websites and passwords in an online vault such as LastPass or Dashlane. Otherwise, an Excel spreadsheet can also be effective as all hardware and software can be listed.

2. Decide What You Would Like Done with the Properties

Set out clear instructions on how each asset should be handled as the treatment, depending on the nature of the asset, will vary. Some assets may need to be saved and archived, others deleted, and others should be passed on to friends and family or business partners.
If assets generate revenue, it will be important to consider who they should be transferred to. If you own or manage an online store, should inventory be sold and the store closed? Or should ownership pass to someone else to continue managing the store?

3. Appoint a Digital Executor and Share Access to Your List

At this point, it is important to decide who will be designated to wrap up the digital estate. It should be someone honest and reliable who can be trusted to carry out the wishes as have been stipulated in Step 2. In many cases, the position of Digital Executor is not legally binding and as such cannot be enforced, but it is nonetheless an important designation as they will be able to work with the Executor to help settle the digital aspects of the estate.

4. Identify Your Digital Executor in Your Will

Give your executor the authority and explicit permission that they need to access your personal accounts. The best way to do this is to name them in the will, and state that they have permission to log in to accounts using passwords and to act on your behalf.
It’s important because logging into another person’s account is a legal grey area. Some popular sites such as Facebook and Google are working to develop a solution that would solve this from a technical perspective.
If you would like some help getting your digital affairs in order, please contact Stephen P Stewart Law in Raleigh, NC. Stephen Stewart of counsel with the Raleigh law firm Harris & Hilton and has the requisite skill and qualifications to help clients navigate the often murky legal area of digital estate planning.
The following article was first seen on Raleigh Estate Planning Lawyer Shares 4 Steps Process for Developing a Digital Estate Plan. and is courtesy of Stephen P Stewart Law. See more on:} https://ift.tt/2MQpvQA