I recently had to buy a screwdriver. I did not set out that Saturday morning to add a new screwdriver to my toolbox. I have plenty. My wife wanted to paint our shutters. The screws attaching the shutters to the house had star heads. I didn’t have the right size star head screwdriver. At first,…

Many of our clients come to see us because they are concerned about what happens if they die young. Unfortunately,that does happen. Depending on your stage of life, this may be your most important concern. But as your children leave home, you pay off your house, and you look more toward your second half of…

Real estate often causes confusion for personal representatives. In most cases, real estate is not an estate asset. Title to real estate vests automatically in the deceased person’s heirs at the time of death. If the decedent left a Will, title becomes vested in the beneficiaries when the Will is probated and relates back to…

On November 1, 2018, the IRS announced the 401(k) and IRA contribution limits for 2019.  The IRA limit will increase from $5,500 in 2018 to $6,000 in 2019. Individuals over age 50 may make a catch-up contribution of $1,000, for a total transfer of $7,000 in 2019. This is the first increase since 2013. The Roth…

In June 2018, the N.C. Supreme Court determined that North Carolina’s state fiduciary income tax was unconstitutional as imposed upon the income earned and accumulated by the Kimberly Rice Kaestner 1992 Family Trust. Although the Court did not find the statute to be unconstitutional “on its face,” or in every situation, the ruling will affect a…

After several years of waiting, the Veterans Administration (“VA”) has published new rules that make it more difficult to qualify for needs-based VA Benefits. In January 2015, the VA published a set of proposed rules that would amend 38 CFR Part 3, which covers net worth, asset transfers and income exclusions for needs-based benefits. There…

In its simplest form, a Trust is a gift that involves three parties instead of two. The trustee holds legal title to the property held in trust and the beneficiary holds an equitable interest. A Trust is not a document, but a relationship. If your mother gives you $10.00 and tells you to use it…

If you are a resident of North Carolina, and you die owning tangible personal property, ownership and the right to possession of the property goes automatically to your legal heirs. But once an Executor or Administrator (collectively, the “Personal Administrator” or “PR”) is appointed for your estate, title is retroactively vested in the PR.[1] So…

Many of you know that Medicare is government-sponsored health care insurance for those age 65 and older, and a select few others. The program currently covers about 61 million people. Medicare Part A covers inpatient hospital stays, rehabilitation in a skilled nursing facility, hospice care, and some home health care. Part B covers doctors’ services,…