FROZEN: THE HOOPS MARY HAD
TO JUMP WHEN JOHN DIED
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John unexpectedly died of heart failure after contracting a respiratory virus. He left behind his wife, Mary, of 36 years, his son and his two grandchildren. The day after the funeral, Mary received a call from the funeral director informing her that the check she wrote to them was returned for insufficient funds. When Mary called the bank, she found out their joint checking account was frozen because of John’s death. Mary was upset, as this was her account, too, not to mention the fact that John’s Will left everything to Mary. When Mary went to the bank, they told her, “Joint accounts are equally owned, 50/50. It does not automatically go to the surviving owner and, unfortunately, John did not set up the account with a right of survivorship.” The banker went on to explain that until Mary started the Court Probate process, and jumped through the necessary hoops, there was nothing the bank could do about the frozen account. The saddest part? The bank account was NOT the only asset FROZEN when John died.
This is an all-to-familiar scene for a lot of families in North Carolina. People do not realize that, whether you die with a Last Will and Testament or without one, the only way your non-beneficiary assets can be divided and transferred to others is through a legal process called Probate. The Estate division of the County Court in North Carolina, where the deceased resided, governs. Probate is usually necessary for assets you own individually, those jointly owned with no right of survivorship, and for assets that do not have named living beneficiaries. So where do you start?
MARY’S WALK THROUGH THE MANY STEPS OF PROBATE OF JOHN’S ESTATE:
- Probate starts with gathering a lot of information that is needed to complete a myriad of court forms that have to be completed in the 8-12 step Probate process, which can take a year or more to get through;
- Mary hired an attorney, which people often do, since the clerk of court cannot advise people on how to complete the legal forms or on how to proceed with handling probate;
- Mary went to the bank where she got a certified bank check for the court filing fee of $120;
- Next, Mary had to meet in person with the clerk of court in order to file the application to open the estate and to be legally qualified to serve as Executor of John’s Estate;
- Then, Mary, after qualifying to serve as the Executor, navigated all of the following steps at the direction of her lawyer:
- Obtained a tax ID for John’s estate for tax reporting purposes;
- Opened a bank account in the name of John’s Estate;
- Drafted and mailed letters to all of John’s known creditors, notifying them of his death;
- Drafted the Court mandated notice to creditors and paid for the notice to run in the local newspaper for 4 weeks as required by law so other potential creditors could make a claim against the estate for any outstanding debt owed by John;
- Inventoried the estate assets and determined the value of each at John’s date of death;
- Traveled back to the courthouse 90 days after opening the estate to file the proper Court form that listed all of John’s assets and their values on his date of death;
- Paid Inventory costs to the Court based on the total value of the assets;
- Paid all the estate debts owed to John’s creditors, including commissions the Court awards to an Executor, which can be up to 5% of the total estate assets plus debts;
- Kept a detailed accounting of all transactions, receipts and money paid into the estate and debts paid out, as the court will not close an estate unless it balances to the penny;
- Prepared the annual accounting as required and traveled back to the courthouse again so the Probate clerk of court could review and approve the accounting as balanced, as well as pay any additional costs the court calculates as being owed at that time;
- Paid the lawyer who guided and assisted her to successfully complete her fiduciary duty as executor, once the Court approved the petition for legal fees (NOTE: a lot of lawyers will forgo this technical step and require a large retainer up front, which they bill against throughout the probate process for their services.
- PLUS, Mary had even more to do to meet the probate requirements before everything could finally be distributed to her (or named the heirs) and before the Court would allow the estate to be closed as completed.
TRUTH: 67% of Americans* do not even have a Will, but never fear — the State has a plan for you!
When a person dies without a Will, determining who is entitled to inherit assets comes down to each state's "intestacy" laws. Sometimes it's the state where the decedent lived that determines the heirs. Sometimes it's the state where the physical property of the deceased is located at the time of his death, and to really complicate things, sometimes it's both. The order in which heirs inherit from a decedent's estate, when there is no valid Will is called "intestate succession." State laws prescribe a list of kin who have the “first right” to inherit. Someone further down on the kin list typically will not inherit anything if the “first right” heir(s) is still living.
Here is one example of how an intestate estate — one without a will — is typically distributed under the North Carolina intestacy laws: A surviving spouse almost invariably receives at least half the decedent's estate. She may receive the entire estate if the decedent leaves no living children, grandchildren, or parents (yes, the surviving spouse’s in-laws).
Let us help you in your time of need or help you put the perfect plan in place! Our caring and compassionate Lawyers will customize your wishes to make things simple and easy for your family, ensuring they do not have to suffer through a time-consuming probate process, saving them time, money and the stress of it all.
To learn more, look us up on the web at www.twestateplanning.law or call (888) 787-1913 for a free virtual consultation or request a free legal guide.
*Forbes “American’s Ostrich Approach to Estate Planning” April 4, 2014
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Shayla's World is a non-profit 501c3 organization that was formed by Stacey and Roland Walters to honor their disabled daughter’s memory after losing her unexpectedly in 2018. The mission of the organization is to support families with special needs children. Last year, our clients generously gave over $2,000 to Shayla’s World. While we are not able to hold a fundraising event this year, clients have inquired about how they can support Shayla’s World once again. Donations can be made by check payable to Shayla’s World and mailed to PO Box 486, Efland, NC 27243. Thank you for your continued support and your generosity!!
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Celebrating Life with Shayla |
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Managing Partner Stacey Walters was blessed with a beautiful angel for 10 years. Her daughter Shayla, who was born with a heart defect, unexpectedly suffered a cardiac arrest at 5 months old, leaving her severely disabled. In April 2018, Shayla unexpectedly gained her angel wings and left Stacey and her family on this earth. While Shayla forever changed their family’s life, she taught Stacey the meaning of selfless love and that we are never promised tomorrow.
Shayla’s story forms the pillar of our law practice: We are all going to leave this earth, but if we aren't prepared for the unexpected, the people we hurt the most are the ones we love the most! It is too important not to have a plan in place, and everyone needs an estate plan for that unexpected time, but not just any plan – the perfect plan that easily ensures your final wishes are met while relieving the stress and burden on your family when you are gone!
At Thomas Walters Probate and Estate Planning Attorneys, we build lifetime relationships with our family of clients. We not only help ensure our clients have a current and perfect plan in place, but we give them peace of mind knowing both they and their family can always call on us a trusted advisor when the unexpected happens.
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Upcoming Estate Planning Events |
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COMING SOON...
PLAN, PREPARE, PREVAIL: 100% READY FOR LIFE’S UNEXPECTED
DID YOU KNOW THAT IN 2020, MORE THAN 70% OF AMERICANS HAVE FAILED TO PREPARE FOR THE MOST IMPORTANT EVENTS IN THEIR LIFE? IMAGINE ALL OF THE STRESS, ANXIETY AND EXPENSE THAT ENSUES WHEN UNEXPECTEDLY TRYING TO NOW PLAN IN THE MIDDLE OF CHAOS.
Stacey Walters will be launching virtual seminars beginning in 2021 that will put you at the top of the preparedness class! Stacey knows first hand what this looks like and is determined to make a difference, one person at a time!
Stay tuned for details to make sure you are not preparing to fail yourself and your family during difficult times!
“By failing to prepare, you are preparing to fail.” Benjamin Franklin
Register today! 800-769-1561
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If you would like a digital copy of all your documents, please send us a request. The Cost is $50 for one flash drive/USB and $10 for any extra ones needed.
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I wish to take this opportunity to commend Stacey Walters for her outstanding performance in negotiating a very complicated estate. She exhibited extraordinary patience and her expertise is unquestionable. I found the documents to be legally explicit and thoroughly formulated. I would not hesitate to recommend her as an estate attorney.
Sincerely,
Jann - Pinehurst, NC
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North Carolina Managing Partner |
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Chapel Hill
1777 Fordham Blvd.
Suite 101
Chapel Hill, NC 27514
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Charlotte - North*
ExecuBusiness Center
10130 Mallard Creek Rd.
Ste. 300
Charlotte, NC 28262
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Greensboro*
Byron Offices Suites
7-B Corporate Center Dr.
Greensboro, NC 27408
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Raleigh - Main
Access Office Business Center
8801 Fast Park Dr.
Ste. 301
Raleigh, NC 27617
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The Pinehurst/West End
5228 NC-211 D
West End, NC 27376
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