 A new year brings fresh goals, big intentions, and resolutions we fully believe in. While some plans fade (we’re looking at you, unused gym memberships!), one decision truly holds its value year after year: getting your estate plan in order. As the saying goes, “failing to plan is planning to fail,” and when it comes to your family and assets, crossing your fingers is not a legal strategy.
Passing away without a will means the state decides how your assets are distributed. Even with a will, probate can be confusing and time-consuming, especially as Clerks’ Offices continue transitioning to an online system. While technology promises convenience, it does not always show up that way in real life. And transitioning things online means less privacy and an increased need to rely on more private trusts. Estate planning also covers the unexpected moments no one likes to think about. Naming trusted individuals to handle your affairs, care for minor children, and make medical decisions if you cannot do so ensures those decisions stay with people you want rather than the people the state names. These documents must be created while you have legal capacity, which is why waiting for the “right time” can be risky. As our practice continues to grow, we are proud to assist clients with estate planning matters in both North Carolina and South Carolina. While the goals of estate planning are universal, the laws and procedures can vary by state. Working with a firm that understands the nuances of each jurisdiction helps ensure your plan is legally sound and tailored to where you live. Planning ahead helps your loved ones avoid unnecessary paperwork, delays, and stress. Make 2026 the year you take control of your future, handle the serious things with clarity, and give yourself one less “I really should do that” item on your mental to-do list. If you have questions about creating or updating an estate plan, Jesson & Rains is here to help. While You Build, We Protect.
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 By Associate Attorney Nicole M. Perozzi
It seems like every December we all go through the same routine of wandering through crowded stores or doom-scrolling online in search of the “perfect” gift for someone we care about, despite having absolutely no idea what to buy them. So, you end up buying another sweater only for them to return it. It feels almost impossible to find a meaningful gift that leaves a lasting impact on someone. This year, break the cycle, and give a gift that is guaranteed not to be returned: an estate plan. Are you a new grandparent? We’re here to tell you your grandchild does not need another custom onesie. What your adult child does need is the peace of mind that comes with guardianship designations, clear instructions, and legal protections to ensure your new grandchild is protected no matter what. Do you have aging parents? You know deep down someone will one day have to handle their affairs, and let’s be honest, it’s probably going to be you. Instead of digging through boxes after they pass hoping you find a Will and frantically Googling “what is intestacy and why is this happening to me?”, help your parents get a plan in place now. The best part? Gifting an estate plan does not mean you’re automatically involved in the process. Your loved one stays fully in control, makes every decision privately, and only includes you if they actually want your input. You’re simply sponsoring responsible adulting, not driving it. So, return the ugly sweater you just bought and let Jesson & Rains help you give a gift this holiday season that won’t be returned!  As Thanksgiving and the rest of the holiday season sneak up on us (along with the annual debate over who’s bringing what to dinner), our attention usually turns to spreading cheer, exchanging gifts, and enjoying time with the people we love. Of course, every family has its…colorful personalities and if certain relatives seem determined to earn a lump of coal this year for Christmas, it might be a good moment to review your estate plan and make sure your wishes won’t get lost in the holiday chaos…or family drama.
If you have family members who have a knack for conflict or strained relationships, it’s especially important to make your intentions unmistakably clear in your estate planning documents. Spelling out your decisions on inheritances, guardianship, and who gets to handle important matters on your behalf can go a long way in preventing confusion or a festive round of “But that’s not what they would have wanted!” In some situations, it may even be wise to explore tools that protect your assets or ensure they’re used exactly as you envision, particularly if you’re unsure how certain heirs might handle their newfound responsibility. Without a will or living trust, North Carolina’s intestacy laws step in to decide who gets what. Unfortunately, the state’s default plan isn’t personalized and it won’t consider your preferences, special circumstances, or that one relative who probably shouldn’t be in charge of anything valuable. And remember, in North Carolina, a will is the only way to name a guardian for your minor children should both parents pass away. Many families also need more customized estate planning, whether due to second marriages, children with special needs, blended families, or simply having a variety of assets. Tools like living trusts can help you tailor your plan to your beneficiaries’ needs, reduce the burden of probate, and prepare for potential tax considerations. A strong estate plan doesn’t just look at what happens after you’re gone; it also protects you during your lifetime. Naming trusted individuals to make financial and medical decisions on your behalf if you become incapacitated keeps your family from facing stressful, costly court proceedings to determine who’s allowed to help you. While it’s important to consider family dynamics in your estate planning, it’s equally important to do so thoughtfully and with professional guidance. The goal isn’t to stir the pot, it’s to protect your wishes and bring clarity, even in complicated family situations. So, as you gear up for the holiday season and before the turkey induced nap hits, take a moment to think about the role estate planning plays in securing the future for you and your loved ones. Tackling these decisions with honesty and intention now can bring peace of mind for years to come. Jesson & Rains, PLLC wishes you a warm, laughter filled Thanksgiving…and maybe just a hint of motivation to get those planning documents in order!  Establishing a revocable living trust is one of the most effective ways to protect your family and streamline the management of your assets during incapacity or after death. Once your trust is signed, the next critical step is to “fund” it. Funding your trust means transferring ownership of your assets into the trust’s name or designating your trust as a beneficiary. This generally includes transferring your real estate to your trust.
After your real estate has been transferred to the trust, we instruct clients to contact their homeowner’s insurance company with a specific request: ask that the trust be added as an additional named insured on the policy. This step can easily be overlooked, but we emphasize it repeatedly because of how important it is to maintaining full coverage. Why This Matters When you transfer your home to your trust, the name on the deed changes from you individually to you as trustee of your trust. Even though you still have full control of the property, your insurance company technically views this as a change in ownership. If your policy only lists you as the insured owner, the company could deny a claim because the “named insured” on the policy no longer matches the property’s legal owner. We instruct clients to ask that both they and their trust be listed as named insureds on their homeowner’s policy to ensure coverage remains intact and there’s no question about who is protected under the policy. Real-World Consequences Consider a homeowner who experiences a fire after transferring their property to a trust but never updates their insurance policy. Because the trust isn’t listed as an insured entity, the claim could be delayed, or worse, denied altogether. While each situation depends on the policy language and state law, it highlights a critical point: insurance companies rely on technical accuracy. A seemingly minor oversight can have devastating financial consequences. Taking ten minutes to verify your homeowner’s coverage can prevent major headaches later. “Additional Named Insured” vs. “Additional Interest” Many insurance carriers will add the trust as an additional interest, but that’s not the same as being an insured party. An “additional interest” designation merely allows the insurer to notify the trust of policy changes. We encourage clients to ask their agent to confirm, in writing, that the trust is covered as a named insured. If your carrier refuses or limits this option, it may be time to explore other providers. At Jesson & Rains, we build these details into our planning process because thoughtful protection extends beyond documents. We offer services that inventory your assets and provide fully customized asset transfer instructions with unlimited support during the funding process. Our Legacy Secure Plan assists clients every step of the way as they fund their trusts, and our Legacy Support Program offers ongoing maintenance and review to ensure your trust remains properly funded year after year. Not sure if you have properly funded your trust? We can help. Contact us to get started.  By Mercedes DeFeo
Don’t give your hard-earned business equity away to your employees like candy to trick-or-treaters! There is another way to compensate them for their contributions. Phantom shares may sound spooky, but it is really the opposite. Interest in a corporation is identified by “stock” or “shares,” while interest in an LLC is called “units” or “interest.” For purposes of this article, Phantom Shares mean both corporate stock and LLC interests. All business owners have certain rights, so if you give away equity, you are giving up some control in your business. Phantom shares, also known as phantom stock or phantom units, are a way to compensate employees based on the overall value and performance of your business (normally, the profits), similar to how shareholders and LLC members are compensated via distributions and dividends. Phantom shareholders differ from regular shareholders because they are not given any of the rights a business owner would have. Phantom Shares are awarded via a Phantom Award Agreement. Sometimes there might be a Phantom Share Plan if you wanted to set up a uniform system for awarding phantom shares to multiple employees in the company. The Plan outlines the rules for distributing phantom shares to participants, such as eligibility, how the phantom share value will be determined, and how the shares vest. Depending on the plan, phantom shares may be considered deferred compensation, so it's important to involve your CPA. Through the plan, you can specify a minimum number of days employed before an employee can participate, if value of phantom shares is based on the date your employee starts participating or if value appreciates as the company grows, whether the vesting of phantom shares is based upon continued employment with the company or if termination impacts payout, etc. If you give an employee equity, you can’t take it back if their employment terminates...you have to buy it back! Now that’s scary! Phantom shares are a great way to create motivation and drive in your employees to give their all towards the success of your business, without you being haunted by the idea of losing control over it. Happy Halloween from Jesson & Rains!  By Associate Attorney Nicole M. Perozzi
ChatGPT and other AI tools have quickly become a part of our everyday lives. From helping us unclog a drain, decorate a room, plan a vacation, or even make an email more readable and grammatically correct, AI is everywhere. It may be tempting to experiment with AI to draft legal documents, but that should be avoided. A shortcut today can create confusion, conflict, and financial hardship down the road. Have you ever heard the phrase “garbage in, garbage out?” We think that is a good way to describe AI-drafted legal documents. ChatGPT pulls its knowledge from the internet, where sources are sometimes incorrect, outdated, or from other jurisdictions (even if you search for something state-specific). ChatGPT has been documented to “hallucinate” or invent citations to nonexistent case law. AI models are not always trained in the most current laws, regulations, or court cases, resulting in documents that are outdated or non-compliant. An AI-generated legal document is often a generic template that lacks the crucial, nuanced language specific to your situation. It lacks the assistance of an attorney who can provide judgment, experience, and strategy for a client’s unique situation. AI relies on patterns in data rather than understanding the intent or context behind a legal document. It cannot ask clarifying questions or understand the commercial realities of a deal in the way a human can. Think about it for estate planning: are you remarried with children from a prior relationship? Do you have a loved one with special needs? Do you own a business you want to pass down? Do you have minor children? Do you own real estate? Situations such as these require careful and customized planning beyond just filling in blanks on a template. AI simply isn’t designed to handle these nuances. The biggest danger with using an AI-generated estate planning document is the false sense of security it provides. Although your will or trust may look fine, a loved one may discover years later that there is a serious issue with your estate plan. At that point, it’s too late to fix. If your AI-generated will is found to be invalid, your estate will pass subject to your state’s intestacy laws. For example, if you pass away in North Carolina with a spouse and children, you may be surprised to hear that your spouse may share in your estate with your children. In the business context, we’ve seen clients with contracts that require them to do so much more than is legally required, actually opening them up to more potential liability, because AI put “best practices” in the contract instead of legal requirements. If a client provides us with an AI drafted agreement, it oftentimes costs them more money to unwind it than if we had just drafted it in the first place. While AI is a great tool for learning about the law, it’s not a substitute for personalized legal advice. In nearly every client meeting we have, we hear comments like, “I never thought of that.” It’s our role to help you plan not only for the things you already know you need, but also for the things you may not realize you need to prepare for—and AI can’t do that based on real legal training and experience. Contact us today to schedule an introduction call! At Jesson & Rains, while you build, we protect. |
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