By Tony Cline

We say this over and over again: everyone needs a will to direct who gets their property when they die and avoid the default inheritance laws of this state. But the truth is, for some people, dying without a will and having their assets go to their “intestate heirs” is okay by them.  However, in a country where families are having fewer children, and people are making the decision to cohabitate without getting married, the number of people who will leave behind no intestate heirs will only increase in the future.

If you die without a will and with no intestate heirs, your assets will “escheat” to the state, meaning that all of your property, real, personal, and intangible, will become the property of the state of North Carolina.

If you have no intestate heirs and do not want the state to take your assets, you must have a will. Even a simple will can prevent escheat by naming the desired recipients for your property. Oftentimes, people without intestate heirs will choose a charity, which they prefer over the government.  Even if you currently have intestate heirs, there is no guarantee they will survive you, so naming backup beneficiaries can help prevent escheat. If you need assistance with drafting a will, call Jesson & Rains PLLC for assistance.
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By Meg Abney

Cryptocurrencies like Bitcoin have gained popularity with investors for years, and around 16% of Americans now report that they have invested in or traded cryptocurrency (crypto). Most of these cryptocurrencies use decentralized networks based on blockchain technology—essentially a ledger that is enforced by a large network of computers.

However, the decentralization that makes crypto so popular also means that failure to plan for death or incapacity can prevent your loved ones from accessing your digital assets. Taking advantage of the blockchain now shouldn’t mean blocking loved ones from inheritance in the future. Read on for some estate-planning tips to help protect your assets.

What happens to my crypto when I die or become incapacitated?

Like funds in a bank account, cryptocurrency remains wherever it was stored, usually in a digital wallet or with a third-party holder. But unlike a bank account, your executor or agent under a Power of Attorney cannot simply request access to these funds upon your death or incapacity. Instead, you will need a method to provide your executor or agent with your keys and seed phrases. Failure to do so could mean that your loved ones never see these funds. 

Can I just leave my crypto in a will?

Yes, but your executor will still need to gain access to it, and remember that your will becomes public record, so you should not include any sensitive information regarding your cryptocurrency. A simple way to communicate this information is by drafting a separate “access plan” that you keep with your will that describes your digital wallets, passwords, keys, and seed phrases.

What is the best way to plan for the future of my crypto?

While everyone’s situation is different, establishing a living trust is one of the best ways to ensure that your digital assets are not lost after your death. Some distinct advantages of establishing a trust for your cryptocurrency include: 

• Saving your beneficiaries time and money by keeping assets out of probate. 
• Providing immediate access to investments, which is important due to the volatile nature of cryptocurrency markets.
• ​​Ensuring privacy and better protecting access information from potential hackers.
• ​Reducing the chance that your cryptocurrency will be lost after you die.

With a living trust, you continue to maintain control over your cryptocurrency during your lifetime. After death, your successor trustee administers your trust according to your instructions. Setting up a trust involving cryptocurrency can be complicated, so it is best to consult with an experienced estate planning attorney. Please call Jesson & Rains if you have questions.

By Attorney Kelly Jesson & Meg Abney

Most people are aware that 529 plans are a way to intelligently save for minor’s education with pre-tax dollars. We use the word “minor” because money can be set aside for any beneficiary, not just your child, to use on education. This article contains more details on these accounts so you can determine whether these plans are right for you.

What can 529 funds be spent on?

• Tuition and fees, including vocational schooling like culinary schools, trade schools, etc. and graduate school.
• Up to $10,000 per student for tuition incurred at elementary or secondary schools.
• Room and Board, including off-campus housing up to the cost of room and board on campus.
• On-campus meal plans. 
• Textbooks and required supplies, if specific and required for the course. 
• Special-needs equipment, such as mobility aids and accessibility technology 
• Student loan debt – the first $10,000 towards student loans is penalty-free.

What can 529 funds not be spent on?

• Transportation-related expenses
• Fitness club memberships (even for on-campus gyms if the service is opt-in rather than mandatory) 
• Insurance
• Cell phones/cell-data plan 
• Testing fees (ACT, SAT, etc.)

Can a 529 plan affect the ability to get financial aid/needs-based scholarships? 
 
Yes. If the student or parent owns the 529 plan, on the FAFSA form, it counts as an asset.  If a grandparent owns the 529 plan, it is not reported on the first year, but if money from the plan is used to pay for the student’s education, it must be reported as “untaxed income to the student” which may affect the ability to get aid in future years.
 
What happens if the beneficiary does not need the money?
 
When money is contributed to a 529 Plan, the account owner retains control of the money in the account, even when the beneficiary is no longer a minor.  There is no expiration date on the account, and there is no age limit by which funds must be withdrawn. Withdrawals for non-authorized expenses are penalized and taxed, similar to early withdrawals from a retirement account. 529 plans cannot have multiple beneficiaries at the same time, but they can be split into two in the event you want to make distributions to more than one beneficiary.  
 
​If the account owner dies, who decides what happens to the account how the funds are to be spent?
 
It depends on the terms of the particular 529 plan. Sometimes the terms of a 529 plan will provide that the beneficiary becomes the new owner of the account upon the owner's death. However, this is not common practice. 
 
Usually, the enrollment application for a 529 plan asks the owner to name a successor owner. This person becomes the new owner and even has the ability to change the account's beneficiary and make nonqualified withdrawals. For more control, it is better to name a trustee as the successor owner since the actions of the trustee are bound by the terms of the trust. 
 
If no successor is listed, and the account holder dies, the former owner’s executor will become the new account holder. The executor will usually have the same powers over the account as the original owner.