Estate Planning Trends in North Carolina (2025)

As you get older, it’s natural to think more and more about end-of-life planning. Creating an estate plan is an important phase in every person’s life, and working with a North Carolina estate planning lawyer can help guide you through the process. With a skilled professional on your side, you can also better understand estate planning trends in North Carolina so you can make the right choices for your financial assets.

Key Factors of Estate Planning in 2025

Estate planning can be about different things for different people depending on their desires, goals, and current life status. Time has molded the nature of estate planning year over year, but its main purpose has remained consistent. At its core, estate planning is about retaining control over one’s finances and making decisions for one’s assets for the future. Estate planning can typically involve:

• Your family
• Your business
• Your health

Your Family

With a solid estate plan in place, you can dictate how your assets are to be distributed after you pass away, ensuring surviving family members are cared for in a manner you deem fit. You can allocate college funds, pieces of property, and more to heirs or beneficiaries at designated times. Plus, you can give more than just financial assets; you can also pass on family heirlooms, letters, mementos, and more.

Your Business

If you run a business, it’s important to ensure the entity is protected and set up in a way that it cannot be taken away from you either while you’re still alive or posthumously. With an estate, you can add protections for your business that keep it safe while you’re alive and that ensure its preservation after your death.

Your Health

With a total of 53,571 deaths in North Carolina in the first half of 2024 alone, it’s clear how important it is to have a plan for when your time comes. Estate planning makes decisions about your health and life-sustaining care now, so your fate is not determined by another person’s decisions down the road.

As of 2024, the leading causes of death in North Carolina are heart disease, cancer, and accidents. With accidental deaths coming in as the third leading cause of death, it’s important to recognize that it’s never too early to begin estate planning. No matter what occurs in your life, it’s beneficial to have peace of mind knowing that the wealth you’ve accumulated is protected.

Avoiding Probate With Estate Planning in North Carolina

Another popular reason people invest in estate planning is to avoid probate court proceedings after a loved one’s death. Probate is the process of a deceased person’s assets being transferred to the people who inherit them. The court essentially proves that a will is valid if it exists and ensures all assets are distributed according to its guidelines. Without a will, the deceased’s assets are distributed according to North Carolina law.

This process can be challenging, confusing, and time-consuming, which is the last thing someone wants to deal with in the wake of losing a loved one. To avoid the probate process, people can establish a living trust. With a living trust, they can make themselves the trustee and name a successor trustee who takes over the trust once they pass away.

With the assets being controlled by the trust, everything can transfer directly over to the new trustee upon the decedent’s death without going through probate. It’s important to note that not all types of trusts can skip probate. It’s wise to meet with a skilled estate planning lawyer to discuss the right options for keeping your finances safe.

FAQs

What Is the 5 By 5 Clause in Estate Planning?

The 5 by 5 power in the trust clause allows the beneficiary of a trust to withdraw certain amounts of money each year in addition to the trust’s regular income payout benefit. This clause typically gives the beneficiary the right to withdraw $5,000 or five percent of the trust’s fair market value, whichever value is greater.

How Much Does Estate Planning Cost in North Carolina?

The overall cost of estate planning can vary depending on the complexity of your financial situation. More complex cases with diverse assets and financial needs may require more documents, which ultimately could cost more. However, avoiding proper planning to cut costs can lead to expensive mistakes later. As a general rule, the more valuable your estate becomes, the more planning is required to ensure it is transferred correctly upon your death.

What Is the Three-Year Rule in Estate Planning?

The three-year rule exists to prevent people from avoiding estate taxes by transferring or relinquishing property shortly before they pass. Under this rule, the value of a property is brought back into the estate for tax purposes if a person transfers it within three years of their death. To be able to benefit from certain tax breaks regarding property in your estate, it’s important to complete any transfers or relinquishments outside of that three-year window.

What Does an Executor Do in Estate Planning?

The executor is also known as the personal representative of the will and is named in a will as the person who can carry out the wishes of the decedent. Unless there’s a living trust in place, it’s the executor’s responsibility to enter the will into probate. Moreover, the executor is responsible for paying debts and distributing assets to the designated beneficiaries of the estate.

Reach Out to a North Carolina Estate Planning Lawyer to Start Your End-of-Life Planning

No matter what stage of life you’re in, creating an estate plan can be very beneficial for your future. Our legal team at The Jonas Law Firm, P.L.L.C., has decades of experience handling estate plans for North Carolina residents.

Established in 1912, The Jonas Law Firm, P.L.L.C., is proud to be generations of attorneys serving generations of clients. Now, we’re ready to hear your unique story and explore ways to keep yourself and your assets safe. Call our office today to set up a consultation with a North Carolina estate planning lawyer.