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2019 Changes To Retirement Plan Contributions

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There are some key retirement plan contribution changes going into effect in 2019. While major tax reform went into effect last year, there are some changes that hit retirement contributions in 2019. Looking at the changes and making adjustments now can help you make the most of the coming year – most workers can save more across all income levels. Here’s what’s changing for 2019 401k contribution limits and other 2019 retirement contribution changes: 

How much can you put in a 401k in 2019?

You can put up to $19,000 in a 401k in 2019. That’s up from $500 from last year’s limits. While it’s only a slight increase, for workers who want to make the most of their retirement savings or get caught up, every little bit makes a difference. In addition, lower-income earners can claim a savings tax credit in addition to the tax deduction that everyone gets for contributing to a 401k. 

The contribution changes apply not only to 401ks, but also to 403b plans, many 457 plans and the Thrift Savings Plan for government workers. You can adjust your monthly contributions to add another $500, or you can make the additional contribution all at once. If you make the contributions monthly, it’s an extra $42 per month. 

401k catch-up contributions for older workers

While the contribution limits for general 401k contributions have gone up a little bit, the 401k catch-up limit has not changed. Employees 50 and older can contribute more to their 401k than the annual limit. The extra contribution is called a catch-up contribution, but it’s really just a higher limit for older workers. 

The 401k catch-up contribution in 2019 is $6,000. That means if you’re 50 or older, you can contribute an extra $6,000 to your 401k account. If you’re 50 or older, you can contribute a total of $25,000 to your 401k in 2019. 

What is the IRA contribution limit in 2019?

In addition to 401k contribution limit changes in 2019, there are also changes to IRA contribution limits. An IRA allows you to save for retirement on a tax-free or tax-deferred basis. Like the 401k contribution limit, the IRA limit is also inching up by $500 in 2019. It’s the first time the IRA contribution limit has gone up since 2013. There’s also an IRA catch-up contribution limit, but it’s unchanged for 2019 at $1,000. 

Income limits for retirement savings in 2019

In 2019, there are limits to IRA contributions based on your income. There are a few things to keep in mind when you’re sorting out whether the income limits apply to you. First, if you don’t get a 401k through your employer, you can contribute to the IRA no matter how much you earn. Even if you earn over the income limits, the limits don’t apply to you because you can’t do an employer-sponsored plan. Your filing status matters, too, so if you’re filing joint, you may have a higher income limit than if you file single. 

Even if you can’t deduct your IRA contributions from your income, there may be benefits to you of contributing to an IRA. Your contributions may still grow with tax-deferred status. You can still come out ahead even if you can’t take the tax deduction on your 2019 taxes. 

There are a lot of moving parts when it comes to determining whether you qualify to contribute to an IRA and whether you can take a 2019 tax deduction for your contribution. Your income and whether you have an employer-sponsored 401k are both factors that might change your IRA tax deductions. If you have an employer-sponsored 401k, you can still take tax deductions in 2019 for an IRA if you earn $74,000 or less as an individual. The joint income cut-off for IRA contributions in 2019 is $123,000. These limits represent a $1,000 and $2,000 increase from 2018. There are also phase-outs which start at $64,000 for a single and $103,000 for a couple. There are different phase-out limits that apply if one spouse can do a 401k through work and the other spouse can’t. 

2019 Roth IRA contribution income limits

In 2019, the income limits are going up for Roth IRA contributions. A Roth IRA is a special kind of IRA where you pay the taxes up front when you make the deposits. Later on, you get to withdraw your contributions tax-free. The income limit for Roth contributions goes up $2,000 for singles in 2019 and $4,000 for couples. 

The cut-off in 2019 is $203,000 for a married couple and $137,000 for a single. If you make over these amounts, you can’t contribute to a Roth at all. If you make $122,000 as a single or $193,000 as a couple, you can still contribute some to a Roth account, but there are phase-outs that apply to what you can contribute. Because withdraws in retirement aren’t taxed from a Roth account, a Roth can be a fantastic savings vehicle for people who qualify. 

Saver’s credits in 2019

In addition to other 2019 retirement contribution changes, there are also increases to saving tax credits for lower-income workers. Workers who earn $32,000 or less as individuals and $64,000 as married couples get an additional 10-50 percent deduction from their 2019 taxes for 401k and IRA contributions. The limit is up to a $2,000 credit for singles and $4,000 for couples. 

Retirement savers with the lowest incomes are eligible for the biggest tax credit which can be worth as much as $1,000 for individuals and $2,000 for couples. The saver’s credit can be claimed in addition to the tax deferral for saving in a traditional retirement account. The workers with the lowest incomes get to claim the highest percent deductions. 

Retirement contributions and estate planning in 2019

Addressing retirement contributions should be part of your estate planning in 2019. Estate planning is so much more than just drafting a will. As you plan for your future and for your loved ones, maximizing tax benefits and determining optimum retirement contributions is an important consideration. One of our experienced estate planning attorneys can help people of all income levels maximize their retirement benefits and overall estate planning strategy in 2019.

4 Steps To Take After Being Injured At Work

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injured at work

No one plans on getting injured at work. But when an injury occurs, all of a sudden, you need to know what to do. The steps that you take after a work injury are very important to not only your physical recovery, but also to making sure that you get the financial relief that you need to get your life back in order. Here are four steps to take after being injured at work:

1. Make an accident report

Your ability to recover after an accident may depend on making a report as soon as you can after an accident. If your case falls under workers compensation laws in your state, you may need to make an accident report within a very short time after the accident occurs in order to state your claim. You make your report directly to your employer. Your employer should have a form, and they should be able to help you with the procedures for how to file your report.

It’s not enough to make an oral report to a co-worker or a supervisor. A written report is what’s required in order to start the ball rolling with your claim. When you make the report, you should include the basics of your accident. You should include when, where and how the injury occurred. Don’t worry too much about getting every last bit of punctuation perfect and don’t stress too much over details. You just need to document that the accident occurred and give the basic information.

The time window for filing your report may be very short. The sooner you can get a report filed, the better. It’s important to be skeptical of any attempts to dissuade you or otherwise stop you from filing a written report. Your employer should be able to guide you through the process, and it should be quite simple to file your report. When you get your report filed, you’ve taken the first important step in ensuring that you get the compensation that you deserve for your injuries.

2. Get appropriate medical care

The next step to take after being injured at work is to get immediate medical care. You might need to call emergency services to take you to the hospital. If your injuries are severe, you may be incapacitated and rely on others to summon the care that you need. Whether you leave the scene in an ambulance or you’re able to travel to the doctor on your own, you need to seek medical care immediately.

There are several reasons that it’s critical to seek medical attention as soon as you can after you’re injured at work. First, seeking medical care may be critical to your health. You want to address your injuries so they don’t get worse. Knowing what you need to do in order to care for your injuries is critical to making sure that you begin to heal as soon as possible.

It’s important to follow your medical treatment plan. You don’t want your employer claiming that your injuries aren’t serious because you aren’t following your doctor’s recommendations. You also don’t want your employer to claim that the costs of your injury may have been lower if only you had followed your medical care plan. Following your treatment plan is critical to preserving your right to fair compensation for your work injury.

There’s another reason that it’s crucial to seek medical attention right away. A significant part of getting fair, financial compensation after a work injury is documenting exactly what your injuries are. Your injuries may be far more serious than you realize. You may not be able to appreciate exactly what your prognosis is without a full medical evaluation. Your medical treatment team can not only get to the bottom of your diagnosis, but they can also verify and document your injuries in case there are any disputes about them later on.

3. Take photos of the scene of the injury

Even though you’re not a professional investigator, there are things that you can do to gather the evidence that’s available at the scene of your injury. The more evidence you can gather, the stronger your claim is going to be right off the bat. One of the things that can help you get off to a great start when it comes to building your case after being injured at work is taking photos of the accident scene.

You don’t need to be a photographer to get helpful photos of the accident scene. Snapping photos up close and also of the overall scene can show machinery, slippery surfaces and other things that may have contributed to the accident. It’s always better to over-document than under-document, so don’t be shy about taking a lot of photos.

Even if you don’t know what’s the most important, having photographs of the scene can help you establish facts that are critical later on. Witnesses may not be honest, and they can be mistaken. If you have photographs, you have helpful proof of facts that may be critical to proving your claim.

4. Learn about workers compensation and negligence laws

The best way to ensure that you get the recovery that you deserve and find satisfaction in the recovery process is to educate yourself about the laws that apply to your case. Many work injuries fall under workers compensation law. Even though workers compensation laws generally compensate injured employees for their out of pocket losses after an accident at work, there are still steps to take in order to assert your claim and get a recovery that you deserve. The more that you know about the laws that apply, the more confidence that you can have that your case is moving in the right direction.

Wilson Ratledge can help you understand the law that applies to the case. Workers compensation laws may apply, but traditional negligence laws may also apply in some cases. We can advocate on your behalf, and can empower you to understand the law and know that it’s working on your behalf to arrive at the right result after an injury at work.

Taking the right steps after a work accident

An injury at work is a serious matter. You may not be able to return to work immediately, and you may have medical bills and other losses. When you know what to do after a work injury, you can take the right steps to get the compensation that you deserve. Seeking medical care, making the right reports, taking photographs of the scene and empowering yourself to learn about the law can help you recover physically and financially as you move forward after an injury at work.

Preparing To Sell Your Business In 2019

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selling your business

A new year often brings change. If you’re a business owner, 2019 might mean selling your business. If you want to sell your business in 2019, there are things that you should do in order to protect your interests and go about it in the best possible way. Doing the right things can help you get top dollar for your business and make the sale as smooth as possible. Here are 10 things that you should know about preparing to sell your business in 2019:

1. Prepare the paperwork for your business sale

Smart buyers want to see the paperwork for your business. They rely on the paperwork when they first make the decision to explore buying the business. They also rely on your documents when they make the final decision to close the sale.

One of the first things that you should do when you decide to sell your business in 2019 is put your business paperwork in order. The sooner you get started, the more time you have to address any questions that might arise. Having your paperwork prepared and orderly is the first step to finding enthusiastic buyers and getting a great sale price.

This generally includes several years of statements for all your bank accounts, credit cards, copies of customer contracts, and more.

2. Learn how to value your business for the sale

To get a fair price, you need to know what your business is worth. Different types of businesses use different valuation methods. You need to learn about the various business valuation methods like profit, assets and cashflow. The more that you know about how to value your business, the better you can justify your asking price.

Also, research the different types of business sale (asset vs stock), know the differences and how they affect your valuation.

3. Perfect your sales pitch

You need to be prepared to market your business. It’s important to think through how you’re going to communicate to potential buyers that your business is a great investment. Even if your business is sound and a great opportunity, you still need to convince buyers that they should jump in with both feet. Use the start of 2019 to think through how you’re going to market your business to potential buyers and convince them to buy your company.

4. Pick your team

At least some of your employees are going to know about the possible sale of the business. You’re going to rely on them to help you prepare documents at the least. Think through who you want to know about the sale of the business and why.

Think through who’s best suited to help you work on selling the business. Remember that your employees may have strong opinions about you selling the business, and they may have lots of reasons to want a particular outcome. Decide who’s best to help you prepare documents and work towards your goals.

5. Prepare employees for your business sale

There are some important considerations for employees when you sell your business. The buyer may want them to have non-compete and non-disclosure agreements so that they can’t jump ship as soon as you sell. Your attorney can help you prepare the agreements that you need to make sure that your team can continue to help your business now and into the future.

6. Think through answers to tough questions

Your potential buyers are going to ask you difficult questions. Now is your chance to think through your answers. Preparing to sell your business in 2019 means thinking through how you’ll address unflattering points and weaknesses in your business.

7. Be prepared to open up about lawsuits

One of the things your potential buyers want to know about is outstanding litigation. They want to know if you’re suing anyone and if you’re being sued. A lawsuit isn’t necessarily a bad thing, but you’re going to need to explain what’s going on and what your position is in each matter.

8. Gather specifics about top clients and vendors

If your business depends on one client or a few top clients, you can expect extra scrutiny from potential buyers about the business relationship. They want to know that your relationship with your top client is solid. They want to know that your top client is still going to be there after you sell the business.

Be prepared to open up about the nature of your relationship with your top clients. Potential buyers are going to ask a lot of questions about the business you do with major clients and how secure your business relationships are with clients that are make-or-break for your business. Having this information ready to go for potential buyers can show that you’re knowledgeable about your client base and confident in your business relationships.

9. Be patient and wait for the right opportunity

The right buyer likely won’t come along in the first week of the new year. To do it right, it might take the entire all of 2019 to sell your business. Remember that selling your business is a marathon. Gathering the financials, finding the right buyer and preparing the perfect pitch all take time. If you’re in too much of a hurry to sell, you’re not going to get the sale price and terms that you deserve. While you wait, you can get your paperwork and other affairs in order.

Usually, the best time to sell your business is during the busy season. You should sell your business while you’re at a high point. Selling at a low point can mean not getting a fair price for your business. Be ready to wait for the right time to sell so that you’re in a good position to negotiate the right price.

10. Seek expert advice for your business sale

As you prepare to sell your business in 2019, expert advice from an experienced mergers & acquisitions attorney can be crucial to help you arrive at the right agreement. Wilson Ratledge can help you understand what you need to do in order to structure your paperwork in order to make a great showing. In addition, there are important legal agreements that should go into place even as you begin to negotiate the sale.

We can help you identify areas that you can work on in order to make your sale go smoothly, and can help you think through how you’re going to respond to points that might be unflattering. When it’s time to prepare preliminary documents, final documents or employee agreements, we’re ready to provide you with the expert advice that you deserve.

Selling your business in 2019

Selling your business can make 2019 an exciting year. Making sure that you’re prepared can help you command top dollar for the sale. It can help you avoid road bumps that may make the sale difficult. Ultimately, the right preparation can make your business sale the highlight of 2019.

8 Ways To Avoid Tax Surprises In 2019

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2018 tax changes

The U.S. government quietly overhauled the tax code with the Tax Cuts and Job Act. They passed the law in 2017, and big changes apply to taxes for the 2018 tax year, the 2019 tax year and beyond. The tax changes are big, and most taxpayers are going to notice when they begin to prepare their 2018 taxes.

What are the U.S. tax changes in 2018?

The 2018 U.S. tax changes increase the standard deduction. At the same time, the changes reduce the things that people can claim as itemized deductions. The net effect is going to be that fewer people itemize their deductions and just take the standardized deduction instead. There are changes to withholdings and changes to the percentage rates of certain tax brackets.

How do I prepare for the 2018 tax changes?

With a little bit of advance planning, you can be ready for the 2018 tax changes. You may not realize how big the tax changes are until you begin to work on your 2018 taxes. If you don’t make adjustments, you might be in for a good – or bad – surprise come tax time. Of course, with some planning, you can avoid tax surprises in 2019. Here are 8 ways to avoid tax surprises in 2019:

1. Review your withholdings for 2018

The best way to avoid a surprise tax bill in 2018 is to review your withholdings. Your withholdings are the amount that your employer keeps from your pay and sends directly to the IRS. If your taxes are going up with the proposed changes, you want to make sure that you adjust your tax withholdings so that you’re taking out enough from each paycheck.

Of course, whether you need to increase your withholdings or you can rest easy depends on an estimate of your overall tax liability. Even with changes that drastically reduce things that you can deduct, many people are going to pay less in taxes overall than they did before. On the other hand, if you’re on the losing end of the changes, you might have to write Uncle Sam a check. A mid-year review of your withholdings can prevent you from having April 15, 2019 come with financial setbacks.

2. Stay on top of standardized deductions

The old tax code had both standardized deductions and personalized exemptions. Standardized deductions are the amount that taxpayers can deduct from their income. Exemptions are an amount of income for each person that’s exempt from taxes.

Under the new tax code, standardized deductions are up, and personal exemptions are out. The new tax code increases the standardized deduction to $12,000 for one person and $24,000 for a couple filing jointly. That’s a big increase over the prior standardized deductions. At the same time, personal exemptions are completely eliminated for everyone.

Fewer people qualify to itemize their deductions under the new tax code. If you’re going to make the jump from itemized deductions to standardized deductions, it’s helpful to know ahead of time so that you can go about your business accordingly. It’s also important to know what expenses are no longer deductible from income.

3. Cap on state and local taxes

If you don’t look twice, you may get a big surprise when you find out that the new tax code caps state and local taxes at $10,000. For families who pay property taxes, they may quickly reach the ceiling. Before, property taxes may have just been seen as par for the course, but now, there’s even more incentive to fight your property tax assessment and lower that local tax bill.

4. Elimination of unreimbursed employee expenses

Most people put at least some of their own money into their work even if they’re an employee. If you’re a teacher, you buy supplies. If you’re an office manager, you might pick up a ream of paper in an emergency. Under the old tax code, employees could deduct unreimbursed business expenses. In the new code, that’s no longer the case. If you pay significant amounts of your own income towards your job, now is the time to renegotiate reimbursements or a pay raise to cover the cost.

You may have a rough time paying the tax bill when you find that the new code doesn’t allow for employee expenses. Teachers may still deduct a limited amount for classroom expenses. In addition, business expenses are still deductible.

5. Make charitable changes

Americans are among the most generous people on earth. With the new tax changes, you may get more bang for your charitable buck by grouping your charitable donations into the same year. For example, you can make twice the deductions in 2019 and then give nothing in 2020. That way, you can take itemized deductions in one year instead of falling into the standardized deduction category two years in a row. The amount of income that you can deduct for charitable contributions increases under the new tax code.

6. Make charity pay with IRA giving

One way to avoid the sting of the new tax code is to give to charity from your IRA. Giving contributions directly from the IRA to the charity lets you avoid counting the IRA withdrawal as income only to take a standardized deduction that doesn’t account for your charitable gift.

7. Your home is no longer an office

People work at home these days more than ever before. Unfortunately, if you’re an employee, you can no longer claim a deduction for your home office. If you’re self-employed, the home office is still a deduction. For everyone else, home is only home from now on.

8. Child tax credits are going to increase

The child tax credits are better for everyone under the new plan. The credits are higher, the maximum income to qualify is higher and even the definition of who is a qualifying child has expanded. The good thing about the child tax credit is that it’s a direct deduction from your tax liability and not a deduction from your taxable income. It’s a straight credit of the dollars you owe in taxes. Under the new tax code, $1,400 of the child tax credit is refundable, so it can even put dollars in your pocket.

Planning to avoid tax surprises in 2018

Paying taxes is never fun. There are a lot of changes in 2018 and again in 2019. The right planning can help you avoid surprises and use the new tax code to your advantage. The professionals at Wilson Ratledge can help examine your case in order to structure your personal and business taxes in the best way possible.

What Is A S Corporation And How Can It Help My Business?

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business entity choice

If you’re a business owner or you’re thinking of starting a business, the type of business entity that you choose has a big impact on what you do. Choosing a legal entity for your business can impact everything from who can own the business to how you pay taxes. The success of your business can ride on choosing the right structure. Make the right choice, and you can maximize your profits and grow your company.

Whether your business is large or small, the type of structure you choose matters. There’s no right answer based on size, either. Even small businesses have a number of structure options that might be right for them based on the circumstances.

One of the types of business entities that you might choose is an S corporation. An S corporation is a type of corporation that has some special tax considerations that may be beneficial in some circumstances. But what is an S corporation?

What is a S corporation?

An S corporation is a type of business entity. An S corporation is a unique business structure that operates a lot like other corporations only with some special tax advantages. The most distinguishing trait of an S corporation is that profits pass directly to owners before taxes. Owners might choose to have an S corporation in order to enjoy the corporate structure of a traditional corporation along with the tax benefits that come with S-corporation status.

S corporations have been law since 1958. They’re legally considered a corporation with federal income tax that’s a lot like a partnership. There’s only one class of stock in a S corporation. All outstanding shares of stock have equal ownership interests and rights, and shares of stock may be voting or non-voting shares. Profits and losses are distributed in proportion to shares.

Is a S corporation a corporation?

Yes, an S corporation is a corporation. It’s just a special subtype of a corporation that gets some special considerations. An S corporation comes with all of the corporate structure that you expect from a corporation like articles of incorporation. Not all corporations are S corporations, but all S corporations are corporations.

How do I start a S corporation?

To start an S corporation, you must file paperwork with the Corporations Division of the North Carolina Department of the Secretary of State. You must pay the state filing fee and file Form 2553 with the Internal Revenue Service. All corporations need Articles of Incorporation that explain how the company is going to be structured.

What makes a S corporation unique?

An S corporation gives you the benefits of a corporation in terms of corporate structure, but it gives you the benefits of a limited liability partnership or a partnership when it comes to taxes. Unlike other corporations, an S corporation doesn’t have double taxation. That is, the corporation itself doesn’t pay taxes. Instead, the owners of an S corporation pay taxes on the profits the business makes.

An S corporation is beneficial in that owners can take advantage of the things that help corporations succeed while they also maximize profits to owners by avoiding the double taxation that happens with traditional corporations. Shareholders must report income on their individualized tax returns through a Schedule K-1. The income is taxed at each shareholder’s personal tax rate.

You might be thinking that S corporations sound great and that everyone should incorporate as an S corporation in order to save on taxes. It’s not always that easy. In order to incorporate as an S corporation, the business must qualify.

An S corporation is governed by the laws of the state where it’s organized. Generally, an S corporation may have only a limited number of shareholders. The number can be quite high, with as many as 100 shareholders allowed in an S corporation. No non-resident aliens may be shareholders, and other corporations and partnerships are ineligible to be shareholders.

An s corporation may own a subsidiary s corporation. Trust and estates may also own shares of a S corporation. Non-profit organizations organized under IRS code 501(C)(3) qualify to own shares in a S corporation. Spouses are treated as a single shareholder.

What are the benefits of a S corporation?

The primary benefit of an S corporation is that unlike general corporations, business profit isn’t taxed before it’s passed onto shareholders. In that respect, an S corporation is a lot like a partnership. However, S corporations also have the added benefit of a corporate structure.

Corporate structure allows the corporation to continue to operate without much interruption when owners come and go. In addition, articles of incorporation provide structure or how the business operates. A S corporation continues in perpetuity until the corporation’s representatives actively take steps to end it.

Where do laws for S corporations come from?

Laws for S corporations come from both state and federal law. IRS laws determine how an S corporation pays federal income taxes or how they’re exempt from income taxes. Federal law also decides what form you have to file and in what time frame to file in order to have special status. Federal S corporation regulations come from Internal Revenue Code sections 1361-1379. The state the corporation is in also makes the laws for how to file the corporate entity and how to comply with periodic reporting requirements.

A S corporation shareholder must pay themselves a reasonable salary

At first glance, it might seem like the best plan to keep taxes low is to avoid paying salaries to any shareholders who work for the S corporation. North Carolina law requires the corporation to pay the shareholders who work for the company a salary that’s reasonable. States and the IRS may even put extra scrutiny on S corporations in order to ensure that they don’t try to skirt employee taxation laws by avoiding salary payments to working shareholders.

Should I file as a S corporation?

A S corporation may be the right legal entity whether your business is large or small. It’s not the right entity in all situations, but the tax benefits can be lucrative if you qualify to operate as an S corporation. If you’re considering choosing the S corporation status, other business entities that are worth considering may be a general corporation or “C corporation,” a limited liability company and a partnership.

Because the business structure that you choose may ultimately have a big impact on your profits, your business operations and what you must do to operate lawfully, it’s important to weigh your options carefully when you begin a business venture. Wilson Ratledge can help you explore your options and decide which business entity is right for you.

Protecting Your Wishes With A Living Will

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Creating a living will

Planning for the future is important for everyone. While you might know that it’s important to make a last will and testament, you may not know how important it is to also write down your wishes for medical treatment. You can create a legally binding document that details what medical care you want in the event that you’re unable to communicate your wishes. Making a living will keeps you in control. Here’s what you need to know about protecting your wishes with a living will:

How do I go about protecting my wishes with a living will?

A document that details what you want to happen with your medical care if you can’t take care of yourself is called a living will. Even though it’s called a will, it has to do with your wishes while you’re living. A living will writes down what medical care you’re okay with in the event that you’re unable to communicate your wishes. Generally, it states whether you want life-saving efforts like CPR and hydration or you don’t want those efforts. With a living will, you can decide what medical care you want ahead of time so that you can have your wishes followed if you’re incapacitated.

What are the rules for a living will?

Your living will has whatever rules you want to have. Your living will can state that you want all life-saving efforts, or it can state that you don’t want life-saving efforts. It’s up to you what you put in your living will. You can make your living will as general or specific as you’re looking for.

When you make a living will in North Carolina, you need to comply with a few things to make it effective under the law. Once you comply with North Carolina’s rules to make a living will, what you put in it is up to you. A living will makes it clear what you want to happen with your medical care, so you get to decide what you put in it.

How do you make a living will?

To make a living will, you list out how you want your medical care to go in the event that you’re unable to speak for yourself. You can decide what to include, but there are some things that you usually talk about like CPR and life-sustaining hydration. For your living will to be effective, you must follow the rules in your state. When you write out the medical care you want in a way that’s legally effective under the rules of your state, you create a living will.

What do I need to do to make an effective living will in North Carolina?

To make your living will effective in North Carolina, it must be signed by two witnesses and notarized. You must make sure that the witnesses aren’t related to you. The witnesses can’t be people that get paid for your medical care. It’s important to make sure that you talk about all of the important things in your living will in order to make sure that it has the effect that you’re looking for.

Is an advance directive different than a will in North Carolina?

An advance directive in North Carolina is the same as living will. An advance directive is what it sounds like: it writes out your wishes ahead of time. When you’re incapacitated and unable to speak for yourself, it determines what health care you’re going to receive according to your wishes. Essentially, advance directives and living wills are the same in North Carolina.

What is a patient advocate in a living will?

In a living will, you can name someone as your patient advocate. That’s the person who makes choices about your medical care. Their ability to make decisions for you begins when you’re unable to make decisions for yourself. You can tell your patient advocate they can override your written wishes, or you can make them follow the wishes that you set out. You may want to let your patient advocate make a different decision in case unforeseen circumstances arise, or you may want to make sure that everyone honors your wishes no matter what. In any event, the patient advocate is a person who speaks and acts on your behalf according to your wishes when you’re unable to communicate what you want to happen.

Who do I choose for my patient advocate as part of my living will?

For your patient advocate, you can choose anyone who wants the job. Most people choose a family member, but you can choose anyone you like. Be sure to choose someone that you trust, and talk to them about your wishes when you create your living will.

Why do I need a living will?

You need a living will in order to make sure that your wishes are honored when you’re unable to speak for yourself. Without a living will, someone else makes the decisions for you. A living will lets you stay in control and live the life that you choose. A living will can be flexible, and it gives you choices as you and your loved ones face difficult decisions.

What are some things that you should include in a living will?

In a living will you should talk about the major decisions that your loved ones may have to make for your care. Whether or not you want CPR is a good thing to talk about. Whether or not you want life-sustaining hydration and nutrition are also important directives. You should also say whether you want to be an organ donor. Your attorney can help you make sure that you address all of the important points when you make your living will.

Are there any times where a living will isn’t applicable?

There are times where a living will isn’t applicable. A living will applies when a person has health problems that are likely to bring death. In an emergency, a living will doesn’t apply. Emergency medical professionals have to give life-sustaining treatment like CPR. Usually, in cases of illness, a living will applies to carry out your wishes. In some emergency cases, health-care professionals must provide emergency treatment.

Protecting your interests with a living will

A living will works to honor your wishes. By creating a living will, you can have the peace of mind to know that your wishes are going to be honored if you’re unable to advocate for yourself. Our estate planning attorneys can help you create your living will in North Carolina, and can help you make sure that you prepare an effective living will that talks about all of the things that are most important to you.