Estates and Trusts

The succession planning process is an important step at some point in the development of any business. It can help ensure the continuity of a business and protect its assets. Succession planning should be a part of every business’s plan, regardless of size or industry. Here are some tips to help you develop a successful succession plan.

1. Have a Plan

One of the most important aspects of successful business succession planning is simply creating and having a plan. A plan provides a road map for the transition process, outlining who will take on which roles and responsibilities and when specific tasks need to be accomplished.

Having a plan also helps ensure that all stakeholders are aware of their roles and responsibilities during the transition and that everyone is working towards the same goal. Additionally, a plan can help manage expectations and avoid conflict among stakeholders.

2. Choose the Right Successor

The selection of a successor is important in business succession planning because the wrong decision can have disastrous consequences for the company. The successor needs to be someone who is capable of taking over the company and continuing its operations.

They also need to be someone who is compatible with the company’s culture and values. If the successor is not a good fit, it can lead to tension within the company and decreased productivity.

3. Train Your Successor

The purpose of training your successor is twofold. First, it ensures that the transition of power is as smooth as possible, minimizing any disruption to the business. Second, it allows the successor to learn and understand the business inside and out, so that they can continue to operate it effectively after you retire or die. This is especially important in family businesses, where the successor may not have previous experience working in a business setting.

4. Get Professional Help

There are a few reasons why getting professional help is important in business succession planning. One reason is that it can be difficult to know how to start the process or what to do next. A professional can help you navigate these waters and ensure that everything is done correctly. Additionally, a professional can help you develop a plan that takes into account all of the relevant factors, such as tax implications and stakeholder preferences.

5. Create a Possible Timeline

Creating a possible timeline for the succession planning process is important because it allows for a smooth and organized transfer of power from the current owner or CEO to the designated successor.

By mapping out the steps that will need to be taken and the timeframe in which they will need to be completed, both the current owner/CEO and the potential successor can have a clear picture of what needs to happen and when. This can help to minimize confusion and disruption during what can be a potentially tumultuous time.

6. Document Your Plan

Documenting your plan and reviewing with your leadership team is important in business succession planning because it provides a road map for transferring ownership and operations of the business to the next generation of leaders. Without a documented plan, it can be difficult to ensure a smooth transition of ownership and operations. A documented plan can also help to ensure that the business is able to continue operating in the event that something happens to the current owner or leaders.

7. Review and Update Your Plan Periodically

The process of reviewing and updating your plan on a consistent basis is important in order to ensure that your succession plan remains effective. By periodically revisiting your plan, you can identify any changes that may have occurred in your business or personal life that could impact your succession plan. You can also make any necessary adjustments to ensure that your plan still meets your needs.

8. Don’t Forget To Update Your Estate Plan As Well

One’s estate plan should include a succession plan, which details who will take over management of the individual’s assets and affairs, as well as business, in the event of incapacity or death. The two documents should be coordinated to ensure that the desired outcome is achieved. For example, if one wishes to leave specific assets, or business(es) to some individual(s), those individuals need to be named in both the estate plan and the succession plan.

Contact Our Raleigh Business Succession Law Firm

Most importantly, in business succession planning, it is important to work with a skilled attorney because they can help ensure that the process is smooth and that all of the necessary steps are taken in order to transfer ownership of the business to the desired party. An attorney can also help create a will or trust to help direct the succession process. Without an attorney, it can be difficult to ensure that everything is done correctly and that the transition goes as smoothly as possible.

If you are in need of assistance with succession planning, contact our North Carolina succession planning attorneys at Wilson Ratledge today to schedule a consultation and help reduce the stress and uncertainty of creating a business succession plan.

Have you ever asked yourself what will happen to your family and assets after you die? There’s a common misconception that only the wealthy need to prepare a Will. The truth is, almost everyone needs a Will. Just like you took care of your family and estate while you were alive, you can continue doing so even in death through a properly structured Will.

Putting together a Will can be a hassle on your own, and it’s important to have an experienced estate planning attorney on your side to guide you through the intricacies of Will planning. We understand our clients’ needs vary, and that’s why we custom craft your estate plan according to your unique needs.

What Is A Will?

A Will is a legal document where you specify clear guidelines and instructions on how your estate will be managed in the event of your death.

Why A Will Is Important?

1. Peace of mind

While alive, you have to take care of your family and oversee your assets. Unfortunately, this can change in the blink of an eye. Your death can leave your family unprepared if you don’t have a plan. Knowing that you have clearly outlined and explained how your family and estate should be taken care of and managed will give you much-needed peace of mind.

2. To Provide Legal Clarity

There are no restrictions on how long your Will should be. Therefore, you can include as much detailed information as possible. If any of your wishes are unclear or disputed after your death, referring back to the Will can remove any ambiguity. To fulfil your Will, you – the testator – have to name a trustee or executor who oversees the execution of the Will. Additionally, your Will clearly outlines the distribution of your estate.

3. To Avoid Potential Disputes

Dividing your assets after you die comes with its challenges and heightened emotions. Your will clearly defines your assets’ divisions and the direction your family is to take, which can avoid any disputes or misunderstandings.

Frequently Asked Questions

1. I Co-own Property, What Now?

Co-owned property is usually held in joint tenancy with survivorship rights, which means the surviving co-owner will automatically own any assets you jointly owned in the event of your death, and they will not be handled in the probate process.

2. Can I Change My Will?

The law allows you to make amendments as much as you wish. However, the law will only recognize the one in existence at the time of your passing as the relevant and valid one. When editing your will, consider essential and life-changing events such as marriage, divorce, death of a beneficiary or trustee, to mention a few. For peace of mind, it’s a good idea to review your will every two or three years.

3. When Will My Children Receive Their Inheritance?

Any children under the age of 18 cannot receive any assets. A trustee is mandated to manage the children’s inheritance till they reach 18, after which they can receive their share of the estate. However, there are unique situations which can apply that may allow them to directly receive assets before reaching 18.

You can also specify that funds be held in a trust and distributed to your children as they hit certain ages, or other milestones.

4. Should I Include Everything in My Will?

No. Certain assets are better off excluded. Some of them include:

• Jointly owned assets
• Assets in a trust
• Property with already named beneficiaries such as bank accounts and life insurance policies
• Personal wishes and desires such as funeral arrangements
• Any gifts such as to your spouse

5. Should I Have Witnesses and a Lawyer Present?

In North Carolina, for an attested written Will, you are required to sign your will in front of at least two witnesses, and they must sign in your presence according to NC General Statute § 31-3.3. There are also less common wills such as handwritten Wills, oral Wills and joint Wills, which each have their own requirements.

Challenges Surrounding A Will

A Will can be challenged in a number of different ways. Some of the most common are:

• Lack of testamentary/mental capacity
• Forgery and fraud
• Disagreements either between beneficiaries or between beneficiaries and the executors
• Sideways disinheritance
• The absence of a date, purpose, and signature from the testator
• Jurisdictional conflicts like when you move to another state that has varied statutes from your previous state.

Such issues commonly arise when a Will is prepared in the absence of legal counsel. To reduce the likelihood of such contention, it’s important to have your Will created by an experienced North Carolina estate planning attorney.

Contact Our North Carolina Estate Planning Attorneys

Preparing is a Will can be challenging, but our estate planning attorneys have the know-how and experience to guide you every step of the way in preparing a Will and planning for the future. When you’re ready to get started with protecting your family’s future, reach out to us to schedule a consultation!

Eminent domain is the power of the government to take a person’s private property and convert it into public use under the Fifth Amendment.

North Carolina law permits the right of eminent domain, which is the government’s power to seize or “take” your private property for public use.

The North Carolina Supreme Court has defined “taking” under the power of eminent domain as “entering upon private property for more than a momentary period, and, under warrant or color of legal authority, devoting it to a public use, or otherwise informally appropriating or injuriously affecting it in such a way as substantially to oust the owner and deprive him of all beneficial enjoyment thereof.”

The Supreme Court also explained that the test of public use is not the advantage or great benefit to the public. Rather, an appropriate “public use must be for the general public, not a use by (or for) particular individuals.

Under eminent domain, the government may only exercise a taking power if it provides the property owner with “just compensation.” But exactly what constitutes “just compensation” may not be the ousted property owner’s idea of what would be a fair, reasonable, and accurate reflection of your property’s value.

Here, we will explain how the eminent domain process works, what courts have deemed “just” compensation, and the importance of understanding your rights as a North Carolina property owner.

How Does Eminent Domain Work?

First and foremost, the government cannot simply pull the rug out from underneath unsuspecting property owners: it must give the property owner appropriate notice of its intent to take the property under eminent domain. Further, the government must provide an offer of just compensation based on the fair market value of the property. The offer will include a summary of value, but the property owner can request a full appraisal instead.

Typically, in North Carolina, the state Department of Transportation (NCDOT) will attempt to negotiate the value of your land. A right of way agent, or “ROW agent” is the DOT’s representative who handles the case. The agent gets the DOT’s property appraisal and is in charge of negotiating with the landowner and his or her attorney. The ROW agent will make an offer to the property owner for the property based on the DOT’s own appraisal.

Like any other person who wants to buy a property, the ROW agent’s objective is to take the property for the least amount of money—regardless of whether that’s truly “just compensation.”

Because it’s their full-time job, the ROW agent has done this many more times than the average property owner has. He or she will know things about the process that the average citizen may never learn. As the “little guy” going up against the government, you need your own advocate with years of eminent domain experience and vast knowledge of this process.

Part of this analysis is to hire an independent appraiser to value your property. With this information, you and your attorney can determine if the State’s offer is fair. If not, you can reject the offer and try to negotiate a better one. Finally, if you reach an impasse, you can fight the DOT’s offer in court.

If there’s no settlement, the government will typically take your property by instituting legal action. The government will file a lawsuit and deposit the amount it believes to be just compensation with the court. The laws of eminent domain permit the landowner to withdraw the deposit without giving up any rights to seek additional compensation (provided your attorney files the appropriate motion with the court).

Of course, it’s best to rely on an experienced North Carolina eminent domain attorney to address the issues surrounding the filing a motion to withdraw the deposit, the deadlines for filing a response, preserving your property rights, engaging possible property valuation experts, and developing a legal strategy to bring about the best possible outcome in your case.

Can I Stop the Government from Taking My Property?

You can fight to stop the eminent domain process if the proposed taking fails to satisfy the requirements of a public purpose. If the test is met, the government can’t be stopped from taking your property, but again, you can try to get the best possible price for your property.

North Carolina courts usually order the property owner and the government seeking to take the property to participate in a mediated settlement conference. In this meeting, a neutral third-party will try to bring about a reasonable and agreeable price of settlement. However, the mediator doesn’t have the power to force either party to settle the dispute.

If there is no agreement, a 12-person jury will decide the amount of money to which you’re entitled from the government for the taking of your property.

Contact Our Experienced Real Property Attorneys     

There are many complex issues that you must address in the eminent domain process to make certain that you get the highest possible price for your property. This isn’t a do-it-yourself matter like filling in the blanks on a standard form, so don’t try to negotiate with the government on your own.

When it comes to protecting your property, understanding the laws surrounding eminent domain procedure is vital. Even more important is having an advocate on your side who can inform you of your rights as a property owner and help you staunchly protect them.

At Wilson Ratledge, our attorneys regularly advise our clients on the condemnation process in our State and work to ensure that they are positioned to gain the compensation to which the law entitles them. For questions or assistance, one of our experienced North Carolina real property attorneys at 919-787-7711 or via our contact form below. We look forward to serving you.

In the conventional wisdom, the probate process does not tend to carry a positive association: it is known for being costly, time-consuming, and stressful. As a result, many people who have experienced the probate process following the death of a loved one want to avoid it in the future and might feel motivated to help other family members avoid it through intentional estate planning.

However, there is quite a bit of confusion that still surrounds the probate process. What exactly does probate mean? How does the process work? Is it generally good for families who want to see their deceased family members’ wishes honored? If not, is it possible to avoid the process? If so, how?

Here, we discuss the probate process, explaining what it is, how it works, and what you can do now to protect your estate – or your loved ones’ estates – in the long term.

What is Probate?

When a person dies, everything he owns, from the cash in his wallet to the money he invested, is considered a part of his estate. Probate is the legal process of settling this estate by paying off the decedent’s debts and distributing his assets.

The probate process is designed to effectively manage estates in cases in which the decedents failed to provide specific directives. It can be lengthy, often taking more than twelve months to complete. From court costs to attorneys’ fees, it can be expensive. And for those who wish to keep their family affairs private, it’s important to know that matters of probate are public record: once an estate is probated, anyone can access information about it, including who inherited the decedent’s property. As such, for many family members mourning a loss, the probate process can make an already emotional and trying event more challenging.

How Does Probate Work?

Upon a person’s death, a personal representative will be designated to manage the estate. This person may have been named in the decedent’s will. If the decedent did not designate anyone, another qualified individual – dictated by State law – will be appointed. The personal representative will submit an application to the court along with a preliminary inventory of the estate, a certified copy of the deceased’s death certificate, and a copy of the will (if applicable). The personal representative will pay a fee to open the estate and must take an oath to carry out certain responsibilities to settle the estate.

During the probate process, the personal representative will fulfill several duties, including the following (among others):

• Filing an inventory all of the decedent’s assets;
• Paying any of the estate’s outstanding debts;
• Providing notice to known creditors;
• Filing taxes for the decedent;
• Setting up a bank account to pay for any expenses incurred by the estate, such as debts and funeral costs;
• Selling assets to cover debts if needed;
• Distributing assets to known heirs; and
• Preparing a final accounting to close the estate.

Not all assets are subject to probate. If the decedent named a beneficiary for an asset in a will or by some other instrument, generally, that asset will not pass through probate.

Additionally, North Carolina law specifically designates certain items that do not pass through probate, for instance, life insurance proceeds with a named beneficiary, securities held in transfer-on-death accounts, and jointly-owned property (when the joint owner still lives), among others.

If I Want to Avoid the Probate Process, Can I Set up My Estate Plan to Do So?

Proactively setting up an estate plan to avoid probate can lighten the burden that the process often imposes. Here are a few ways to do so.

Name a beneficiary for your accounts. The most straightforward way to avoid probate is to ensure there is a named beneficiary on all of your – or your loved ones’ – accounts. This should include all retirement accounts, brokerage accounts, bank accounts, and insurance policies, as well as Payable on Death (POD) or Transferable on Death (TOD) accounts. Failure to name a specific beneficiary will result in accounts being probated upon the account holder’s death.

Protect your assets. Naming a beneficiary through a POD or TOD clause will only protect accounts, not personal effects. Living trusts are a tool that can be used to keep any asset out of probate. Bank accounts, real estate, or other personal property like a vehicle can be placed in a living trust. Ownership of the property will be transferred to you as trustee and upon your death, your successor will take control of the trust and distribute the property as dictated by the terms of the trust without going through probate.

Consider a joint tenancy. This option frequently applies to married couples, business partners, or other individuals who share ownership rights in property. Property held in joint tenancy does not pass through probate. Instead, the surviving owner automatically takes full ownership of the shared property.

Designate an heir and keep your assets simple. Estates limited to $20,000 in personal property can be settled through a simplified process that does not require formal probate. Additionally, a surviving spouse stands to inherit all the decedent’s assets and the estate’s value is $30,000 or less, the estate can be settled without probate. If the surviving spouse is the only heir, a simplified probate process known as “summary administration” will apply in place of traditional probate.

Contact Our Experienced Estate Planning Attorneys     

When it comes to securing your assets – or protecting your loved ones’ assets – an estate plan can eliminate much of the burden, cost, and uncertainty that can come from relying on the administrative process. At Wilson Ratledge, our attorneys regularly assist our clients in preparing estate plans that ensure their desires and wishes will be met. For assistance setting up your estate plan, contact one of our experienced North Carolina estate planning attorneys at 919-787-7711 or via our contact form below. We look forward to serving you.