Why is an Estate Plan So Important in North Carolina?

From the team at Huggins Law Firm, P.C., we want to talk about a subject that most people try to avoid: planning for the future.

It’s not fun to think about. It’s easy to put off. You’re busy, you’re healthy, and you think, “I’ll get to that… someday.” You’re not alone in thinking this.

Here’s a fact: A recent survey from Caring.com found that in 2024, only 32% of Americans have a will or estate plan. That means almost 7 out of 10 people are leaving their families to sort out a legal and financial mess during the worst time of their lives.

For decades, our law firm has been helping families in North Carolina. We are not just Personal Injury or Criminal Law lawyers. We are a full-service firm that helps people with Family Law, Bankruptcy, and, most importantly, planning for the future.

We see the “whole picture” of a family’s life. We’ve helped clients through a divorce, helped them buy a home, and celebrated with them when they had a child. We have also sat at their kitchen tables after a tragedy, like a car accident, and seen the financial devastation from a lack of planning.

We are here to tell you two simple truths:

1. An estate plan is not just for “rich” people.
2. A good plan is one of the greatest gifts you can ever give your family.

This page is your simple, judgment-free guide to protecting your family in North Carolina.

Key Takeaways from This Page

We know you’re busy. If you only read one part, read this:

• You Have a Plan (Even if You Didn’t Make One). If you don’t have a will, the State of North Carolina has a plan for you. It’s called the “Intestate Succession Act,” and you are probably not going to like it.
• This is About Control. A plan lets you decide who gets your property and, even more importantly, who would raise your minor children.
• A Plan is For Life, Not Just Death. Half of a good plan has nothing to do with death. It answers, “Who pays my mortgage if I’m in a coma?” and “Who talks to my doctor if I can’t?”
• A “Will” Does NOT Avoid “Probate.” This is the biggest myth. A will guarantees probate. A “Trust” is the tool you use to keep your family’s business private and out of court.
• “DIY” Plans are Dangerous. An online form that misses one North Carolina rule (like the witness requirement) can make your entire will invalid, leaving your family with a disaster.
• A Plan = Peace of Mind. The real product we offer is peace. The peace of knowing your kids are protected, your spouse is secure, and your family won’t fight over your memory.

Busting Myth #1: “I’m Not Rich, So I Don’t Need a Plan”

This is the #1 myth we hear. That same Caring.com survey found that 40% of people who don’t have a will say it’s because they “don’t have enough assets.”

Let’s change how you think about this. An estate plan is not about your “wealth.” It is about your family and your responsibilities.

A plan is not about being “rich.” It’s about being responsible.

You absolutely need a plan if you are in one of these groups:

• You Have Minor Children. This is the most important reason. A plan is the only legal way to name a Guardian (the person who would raise them). If you don’t, you are leaving that decision to a judge, who has no idea who you are or what you would have wanted. This is a critical discussion we have with our Family Law clients.
• You Own a House. Do you own a home in Greensboro, High Point, or anywhere in the Triad? Who gets it? How? A plan makes sure the biggest asset you own goes to the right people without a legal nightmare.
• You are in a Blended Family. This is a must. If you have children from a previous marriage, North Carolina’s “default” plan could be a disaster for you. A plan is the only way to make sure your new spouse is protected, AND your children are protected.
• You are a Business Owner. A plan ensures your business can continue (or be sold properly) without you, protecting your partners and your employees.
• You Just Have “Stuff.” Do you have a bank account? A car? A 401(k)? A life insurance policy? “Stuff” has to go somewhere. A plan makes sure this stuff doesn’t get stuck in a court-run process for a year.
• You Want to Avoida Family Fight. You love your family. But grief and money are a toxic mix. A recent study showed that 58% of people have seen family disputes over assets after a loved one died without a plan. A clear, legal plan is the best way to prevent a family fight. It takes the “guesswork” out of it and stops arguments before they start.

The 2 Big Reasons for a Plan (Life and Death)

A good plan protects you in two different situations.

1. The “While You’re Alive” Plan (For Incapacity)

This is the part everyone forgets, but it’s arguably more important.

What if you are in a bad car accident on I-40 or have a sudden, serious medical event? You are not dead, but you can’t make your own decisions.

• Who pays your mortgage?
• Who talks to the doctors at the hospital in Greensboro or Winston-Salem?
• Who makes the life-and-death medical decisions?

If you don’t have a plan, the answer is a judge. Your family would have to go to the Clerk of Court in Guilford or Forsyth County and file a lawsuit to have you declared “incompetent” and appoint a guardian.

This is a public, expensive, and humiliating process. It can destroy a family, as siblings fight over who should be in charge.

A good plan avoids all of this with a few simple documents.

2. The “After You’re Gone” Plan (For Your Stuff)

This is the part everyone thinks about. This is your “rulebook” for what happens after you are gone.

• Who gets the house?
• Who gets your grandmother’s ring?
• Who gets your bank accounts?
• Who will be the “Executor” or “manager” to handle all the paperwork?

Without this rulebook, you are leaving your family a mess. And that “mess” is run by the state of North Carolina.

What Happens If I Die Withouta Will in North Carolina? (The “Intestate” Mess)

This is the part that should motivate you. If you die without a will, it is called dying “intestate.” This means the State of North Carolina gets to decide who gets your property. The state does not care what you “would have wanted.” It doesn’t care that you promised your nephew your car, or that you wanted your partner to have the house.

It only follows a cold, hard set of rules called the N.C. Intestate Succession Act.

Here are some “surprises” the state has for you:

• You are married with two (or more) kids?
  • Myth: My spouse gets everything.
  • NC Law: Your spouse gets the first $60,000 of personal property and one-third (1/3) of the rest. Your children get the other two-thirds (2/3).
  • Result: Your spouse may have to ask your children (or a court-appointed guardian for them) for permission to sell the family home. This is a nightmare.
• You are married with one child?
  • Myth: My spouse gets everything.
  • NC Law: Your spouse gets the first $60,000 of personal property and one-half (1/2) of the rest. Your child gets the other one-half (1/2).
• You are married, no kids, but your parents are alive?
  • Myth: My spouse gets everything.
  • NC Law: Your spouse gets the first $100,000 of personal property and one-half (1/2) of the rest. Your parents get the other one-half (1/2).
  • Result: Your grieving spouse and your grieving parents are now “business partners” and co-own your house and bank accounts. This is a recipe for conflict.
• You are single with a long-term partner (but not married)?
  • NC Law: Your partner gets ZERO. Nothing. It does not matter if you lived together for 30 years. Your kids, your parents, or your siblings will get everything. Your partner could be evicted from the home you shared.
• You are single with no kids?
  • NC Law: Your parents get everything. If they are not alive, it goes to your siblings. If you wanted to leave anything to a friend, a charity, or a niece/nephew… too bad.

This state-run plan is a disaster for almost every modern family. A simple plan fixes all of it.

What are the “Big 5” Documents in a Good Plan?

When you come to our office, we are not just “selling you a will.” We are building a plan. A complete plan has “The Big 5.”

The “Incapacity” Documents (While You’re Alive)

1. Durable (Financial) Power of Attorney (POA)

• What it is: This is a document where you name a person (your “Agent”) to pay your bills and manage your finances only if you become disabled and can’t do it yourself.
• Why it’s “Durable”: The word “durable” is key. It means the document stays valid even after you are incapacitated.
• The Problem Without It: Without this, your spouse cannot legally access your separate 401(k) or bank account to pay the mortgage. They would have to sue you in court to be named your guardian.
• Who to Choose? You need to pick someone 100% trustworthy, organized, and good with money.

2. Health Care Power of Attorney (HCPOA)

• What it is: This is where you name your “Agent” to make medical decisions for you. This is the person who talks to the doctor when you can’t.
• The Problem Without It: We see this all the time. A patient is in the hospital in Greensboro, and the family is fighting in the hallway. The son wants “every test,” and the daughter knows “Dad never wanted this.” The doctors are stuck. An HCPOA stops the fight before it starts.
• HIPAA Release: A good plan also includes a HIPAA (health privacy) release, so your Agent can actually get your medical records.

3. Living Will (Advance Directive for a Natural Death)

• What it is: This is your voice. This is not a “who” document, it’s a “what” document. This is your instruction sheet to your doctors that says, “If I am in a coma with no hope of recovery… I do (or do not) want to be kept on a machine.”
• The Gift it Gives: This takes the worst decision in theworld off of your family’s shoulders. Your spouse doesn’t have to “guess.” They can just follow your written wishes.

The “Death” Documents (After You’re Gone)

4. Last Will and Testament

• What it is: This is your main rulebook. It does three (3) very important jobs:
  1. It names your Executor (the “manager” of your estate who handles the probate process).
  2. It says who gets your stuff (your “beneficiaries”).
  3. It is the only place to name a Guardian for your minor children. (For our Family Law clients: This is the most important reason for a young parent to have a will.)
• The Big Myth: A will does not avoid probate. A will is a “ticket” to probate. It is a set of instructions for the probate judge.

5. Revocable Living Trust

• What it is: This is the “upgrade” to a will. Think of it as a magic bucket (or a small, private business) that you create.
• How it works:
  1. We draft the Trust (the “bucket”).
  2. You “fund” it. You re-title your big assets (like your house, your non-retirement accounts) into the name of the Trust. (e.g., “The Micah Huggins Revocable Trust”).
  3. You control it 100% while you are alive. It’s still your stuff.
  4. When you pass away, there is nothing in your name. It’s all in the “bucket.” Your “new manager” (the Trustee) just follows the rules in the Trust and hands out the stuff privately, with no court and no probate.
• The Benefits: It is 100% PRIVATE. It avoids probate. It is fast. It is great for blended families.

The “P” Word: What is Probate and Why Do We Avoid It?

You’ve heard the word, but what is it? Probate is the public court process of “proving” a will, paying your debts, and settling your estate.

When a loved one dies, the Executor must take the will to the Clerk of Court (in whatever county they lived in, like Guilford County for Greensboro or Forsyth County for Winston-Salem).

This starts a year-long legal process that is a nightmare for a grieving family.

• It is PUBLIC. Your will becomes a public record. Anyone can go to the courthouse and read it. They can see who you left money to, and who you didn’t. This is how nosy neighbors and con artists find their targets.
• It is SLOW. It can take a year or more in North Carolina to “close” an estate. Your family can’t get their inheritance, and the house can’t be sold until the court says so.
• It is EXPENSIVE. This is a huge “secret” cost. The court charges a fee (0.4% of the estate, up to $6,000). The Executor is allowed to take a “commission” (up to 5%!). And, of course, there are lawyer’s fees. It is common for 4% to 8% of your family’s inheritance to be eaten by these fees. (Source: Haithcock, Barfield, Hulse & King, PLLC).

A good plan, especially with a Trust, helps your family skip this entire mess.

The Danger of “DIY” Wills: Why a Cheap Form is the Most Expensive Mistake

You are probably thinking, “Can’t I just use a cheap website for $99?” You can, but it is the most expensive mistake you can make.

Those “one-size-fits-all” forms do not know North Carolina law. And you are not a lawyer.

• Fatal Flaws: We’ve seen “DIY” wills thrown out by the court because they were not witnessed correctly. (In NC, you need two witnesses who sign in front of you).
• Contradictions: A study of “DIY” wills found they are rife with errors. People will “self-create” a clause that contradicts another part of the will, making it impossible to know what they wanted.
• The Trust Isn’t “Funded”: This is the #1 mistake. People get a “DIY” Trust and a binder, but they fail to re-title their house into the Trust. So, the Trust is empty, and their family goes straight to probate anyway.
• A False Sense of Security: A DIY will can give you a false sense of peace, while actually leaving your family a $100,000 legal bill to clean up the mess. (Source: Carolina Family Estate Planning).

A local lawyer who knows the local rules in Greensboro, High Point, and Kernersville is the only way to ensure your plan actually works.

We Are Here to Give You Peace of Mind

This is not “planning for death.” This is “planning for peace of mind.” It is the peace of knowing your kids are protected. It is the peace of knowing your spouse won’t be kicked out of the house. It is the peace of knowing you have taken care of your family.

That is the best gift you can give. It costs you nothing to come in and talk. Let our family help yours.