If my life insurance is in a trust, can I still borrow against it, and what are the risks or downsides? – NC Short Answer Sometimes, but not in the same way as when the insured owns the policy directly. In North Carolina, if a trust owns the life insurance policy, the trustee usually controls…
What kind of trust is typically used to hold life insurance, and who should be the trustee and beneficiaries? – NC Short Answer In North Carolina, the trust most often used to hold a life insurance policy is an irrevocable life insurance trust, often called an ILIT. The trustee is usually someone other than the…
What’s the difference between a durable power of attorney and a medical power of attorney, and when does each one take effect? – NC Short Answer In North Carolina, a durable power of attorney usually covers financial and property matters, while a medical power of attorney, called a health care power of attorney, covers medical…
What happens if my parents don’t sign powers of attorney and there’s an emergency where someone needs to make decisions for them? – NC Short Answer In North Carolina, if parents do not sign financial and health care powers of attorney before they lose capacity, family members usually do not get automatic authority to make…
How do we make sure my parents’ power of attorney documents are valid and will be accepted by banks and healthcare providers? – NC Short Answer In North Carolina, a financial durable power of attorney and a health care power of attorney are more likely to be accepted when they are signed with the right…
How can my parents set up a durable power of attorney, and what decisions would it cover? – NC Short Answer In North Carolina, a parent can set up a durable power of attorney by signing a written document that names an agent to handle financial and legal matters, usually before a notary. A separate…
What is the difference between a medical power of attorney and a durable power of attorney? – NC Short Answer In North Carolina, a medical power of attorney and a durable power of attorney do different jobs. A medical power of attorney, usually called a health care power of attorney, lets an agent make health…
What happens if my parents don’t have powers of attorney in place and they become unable to make decisions? – NC Short Answer In North Carolina, if parents become unable to make financial or health care decisions and they do not already have valid powers of attorney, family members usually do not get automatic legal…
What happens to life insurance proceeds if we keep each other as beneficiaries instead of using a trust? – NC Short Answer In North Carolina, life insurance proceeds usually go directly to the named beneficiary on the policy, not through a living trust, if the beneficiary designation stays in place and the beneficiary survives the…
Can we name a living trust as the beneficiary of our life insurance policies, and what would that change? – NC Short Answer Yes. In North Carolina, a life insurance policy can name a living trust as beneficiary instead of an individual. That usually changes who controls the payout after death: instead of the proceeds…
