NC and SC Estate Planning and Elder Law Firm

On January 18, 2007, the last will and testament of James Brown was admitted for probate in South Carolina. The late rock and roll legend had passed away on Christmas Day of 2006. But, almost 13 years later, his estate has yet to be fully resolved. The issues and complications that have come up during the probate process have stalled the process significantly.

Why Was James Brown’s Estate Stuck in South Carolina Probate Court for So Long?

One of the main issues that has taken considerable time during the probate process relates to Brown’s final marriage to Tomi Rae Hynie.
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The Supreme Court recently issued a unanimous decision in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust. At the center of the case was a dispute as to whether or not North Carolina had the authority to tax the trust given the specific facts of the case. You see, Kimberly Rice Kaestner’s father, Joseph Lee Rice, created the trust in New York for the benefit of his children. He appointed a New York resident as a trustee.
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Creating a Will

Establishing an estate plan and creating a will are important to help ensure your wishes are honored and your family is provided for after you pass. Without a valid will in place, your estate will be distributed not according to your wishes, but according to the intestacy laws of the state. Essentially, state intestacy laws give your property to your closest relatives, usually starting with your spouse and children.
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Durable Power of Attorney

A power of attorney legally authorizes a purpose to act as your agent. The types and purposes for using a power of attorney greatly vary. You, as the principal, may wish to grant your agent broad or limited authority. You may want to limit the authority to one specific situation. A power of attorney is a great thing to use if you cannot make it to something like a real estate closing and wish for someone to act on your behalf to close the deal.
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You may have spent some time considering who you want to receive your assets when you pass away. You may also have spent some time wondering and worrying about what that person or those people who receive your assets will do with them once they inherit them. It can put you in a difficult position when you want to leave a family member or loved one a portion of your estate, but worry about the impact a lump sum financial gain will have. What if the inheritance disincentives finding and sustaining gainful employment? What if all of the inheritance is squander all too quickly? If these kinds of concerns have been on your mind, it is time to consider establishing an incentive trust.

What is an incentive trust?

An incentive trust is a trust that imposes requirements on the trust beneficiaries, which must be fulfilled for them to receive distributions of trust assets.
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Trusts terminate due to a variety of circumstances. Usually, it is as simple as having all of the trust property distributed to beneficiaries and then the trust is effectively terminated. This is what happens with the majority of living trusts which are frequently used as a way to avoid probate while still distributing assets to designated beneficiaries. Once the trust assets have been distributed according to the terms of the trust, the trust closes. For whatever reason, however, you may want to terminate a living trust earlier than originally planned.
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If you die without a valid will in place, you are deemed to have died intestate. Without a valid will, the state intestacy laws will apply and your assets will be distributed accordingly. This is why it is so important to estate plan. Without a valid will, you lose control of who will get what from your estate. Take the time to put an estate plan in place and know that your wishes will be honored after you pass away.
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An often overlooked, but very important, aspect of estate planning are health care directives. These are legal documents that can describe the medical care you want should you be unable to communicate your wishes to your family, friends, and treating medical providers. You should not wait until you are ill, injured, or otherwise incapacitated to put these documents into place. They are crucial in the event of the unexpected happening. If you ever become incapacitated, health care directives can ensure that your wishes are carried out even when you are unable to communicate them.
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Whether it is a dog, cat, bird, or other kind of animal, our pets are like family. Like family, we want to make sure our pets are properly cared for after we pass away. This is possible with careful estate planning.
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Estate planning does not seem like a pleasant prospect. It does involve thinking about death and incapacitation, two things people generally do not want to reflect on. Estate planning, however, is too important to avoid. Confronting difficult questions is the only way to legally protect yourself and the best interests of your loved ones. If you think you are too young, too healthy, too poor, or any other reason to need to estate plan now, reconsider.
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Just like individuals, trusts are subject to taxes at both the state and federal level. How a trust is taxed will vary depending on the type of trust funds. Sometimes a trust will incur the tax liability. Other times a trust fiduciary or beneficiary will incur the tax liability.

How are Trusts Taxed?

In North and South Carolina, trusts are subject to taxes when there is taxable income being generated by the assets held in trust.
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