In 1960 Charles Pickelsimer (“Charles”) inherited significant stock holdings in a family telecommunications company.[1] Over the next 45 years, Charles gave his children and grandchildren stock certificates as gifts. When he sold the company in 2008 for $65 million, Charles and his children received significant cash distributions. In 2009, Charles and his wife executed an estate plan to protect their assets, and their children were the primary beneficiaries. Charles was diagnosed with mild dementia and memory loss in January 2010, and his wife died in March of that year. His condition continued to subsequently decline. Charles executed a new estate plan in August 2010 (“2010…
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Guardianship Proceedings in North Carolina
It is prudent to execute a healthcare and/or financial power of attorney well in advance of necessity to ensure your individual wishes are honored in the event you are unable to attend to your own needs. However, competency is required to execute a power of attorney. If you become incompetent and do not have a durable power of attorney, it will be necessary for someone to petition the court to appoint a guardian to manage your affairs. Before appointing a guardian, the court first determines whether an individual is legally incompetent. The adjudication of incompetence is heard by the clerk of court…
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Non-Conforming Payable on Death Accounts Can Survive as Common Law Tentative or “Totten” Trusts
On August 4, 2015, the North Carolina Court of Appeals issued a ruling clarifying that when a grantor seeks to create a statutory payable on death (“POD”) account, but fails to satisfy the statutory provisions, he/she can still rely on the existence of a common law tentative trust or “Totten” trust as an alternative.[1] The Totten trust, sometimes called a “poor man’s will,” was established after the 1904 New York Court of Appeals decision, In the Matter of Totten. The requirements to create a Totten trust are: (1) sufficient words to show intention to create…
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NC Court of Appeals: While decedent’s actions effectively bypassed will, “it was his prerogative to do so.”
On July 21, 2015, the North Carolina Court of Appeals issued a ruling emphasizing the importance of executing cohesive estate documents and appointing a trusted fiduciary to execute the testator’s wishes.[1] Dwight Jordan died testate with four children, and his will instructed the estate to be divided between them in equal shares. Mr. Jordan named one of his sons, Raymond Baxter Jordan (“Defendant”), as the executor, and designated him as his attorney-in-fact. The same day he executed the will, Mr. Jordan and the Defendant converted Mr. Jordan’s bank account to a joint account with rights of survivorship. The bank account comprised…
