Sample Will and Living Trust Documents

s LAST WILL AND TESTAMENT I, Adam Benjamin Carpenter, of __________ County, North Carolina, do hereby revoke all Wills and Codicils heretofore made by me and do hereby make, publish and declare this my Last Will and Testament in manner and form as follows: I. I direct that all of my just debts, including unpaid charitable pledges, whether or not the same are enforceable obligations of my estate, my funeral expenses (including the cost of a suitable monument at my grave), and the cost of administration of my estate be paid out of the assets of my estate as soon as practicable after my death. II. I direct that all estate and inheritance taxes and other taxes in the general nature thereof (together with any interest or penalty thereon), which shall become payable upon or by reason of my death with respect to any property passing by or under the terms of this Will or any Codicil to it hereafter executed by me, or with respect to the proceeds of any policy or policies of insurance on my life, or with respect to any other property (including property over which I have a power of appointment) included in my gross estate for the purpose of such taxes, shall be paid by my Executrix so far as may be possible, out of the principal of my residuary estate, and shall not be charged against or recovered from any of the several beneficiaries hereunder, or the takers of any such property. III. All the rest, residue and remainder of my property of every sort, kind and description, both real and personal, I will, devise and bequeath unto my beloved children, DALE EUGENE CARPENTER; FRANCIS GALE CARPENTER HIGHTOWER; JASMINE CRYSTAL CARPENTER KALE; AND MANDY PATRICIA CARPENTER ROSARIO, in equal and divisible shares, with the child or children of any deceased child of mine taking the share his, her or their parent would have taken had such child of mine survived me. _________________________(Seal) ADAM BENJAMIN CARPENTER

2 IV. I hereby constitute and appoint my beloved daughter, FRANCIS GALE CARPENTER HIGHTOWER, the Executrix of this my Last Will and Testament, and I do hereby give and grant unto said Executrix full power and authority to sell any property or to do any act which in her opinion is reasonably necessary for the proper administration of my estate. No bond shall be required of said Executrix. In the event that my appointed Executrix, FRANCIS GALE CARPTENTER HIGHTOWER, should predecease me, then my beloved daughter, JASMINE CRYSTAL CARPENTER KALE shall act with the entire fiduciary authority established herein. V. In addition to the powers granted to my fiduciaries by General Statutes Section 28A-13- 3(a), and not in limitation thereof, the powers set forth in North Carolina General Statutes Section 32-27 are hereby incorporated by reference and granted to my fiduciaries, subject to the restrictions of General Statutes Section 32-26(b). _________________________ (Seal) ADAM BENJAMIN CARPENTER I, ADAM BENJAMIN CARPENTER, the testator, sign my name to this instrument this __________ day of __________, 20_____, and being first duly sworn do hereby declare to the undersigned authority that I sign and execute this instrument as my last will and that I sign it willingly, that I execute is as my free and voluntary act for the purposes therein expressed, and that I am eighteen years of age or older, of sound mind, and under no constraint or undue influence. _________________________ (Seal) ADAM BENJAMIN CARPENTER

3 We, _________________________ and _________________________, the witnesses, sign our names to this instrument, being first duly sworn, and do hereby declare to the undersigned authority that the testator signs and executes this instrument as his last will and that he signs it willingly, and that each of us, in the presence and hearing of the testator, hereby signs his will as witness to the testator's signing, and to the best of our knowledge the testator is eighteen years of age or older, of sound mind, and under no constraint or undue influence. _________________________(Seal) WITNESS _________________________(Seal) WITNESS THE STATE OF NORTH CAROLINA COUNTY OF _____________________ Subscribed, sworn to and acknowledged before me by ADAM BENJAMIN CARPENTER, the testator, and subscribed and sworn to before me by ____________________________ and ________________________, witnesses, this __________ day of __________, 20_____. (Seal) (SIGNED)_________________________ NOTARY PUBLIC My commission expires: ______________ __________________________ (Seal) ADAM BENJAMIN CARPENTER

4 Exhibit I (A): North Carolina General Statute Section 28A-13-3(a) and (a1)--Powers of a personal representative or fiduciary (For reference, see www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_28a/gs_28a-13-3.html) (a) Except as qualified by express limitations imposed in a will of the decedent or a court order, and subject to the provisions of G.S. 28A-13-6 respecting the powers of joint personal representatives, a personal representative has the power to perform in a reasonable and prudent manner every act which a reasonable and prudent person would perform incident to the collection, preservation, liquidation or distribution of a decedent's estate so as to accomplish the desired result of settling and distributing the decedent's estate in a safe, orderly, accurate and expeditious manner as provided by law, including the powers specified in the following subdivisions: (1) To take possession, custody or control of the personal property of the decedent. If in the opinion of the personal representative his possession, custody or control of such property is not necessary for purposes of administration, such property may be left with or surrendered to the heir or devisee presumptively entitled thereto. He has the power to take possession, custody or control of the real property of the decedent if he determines such possession, custody or control is in the best interest of the administration of the estate. Prior to exercising such power over real property the procedure as set out in subsection G.S. 28A-13-3(c) shall be followed. If the personal representative determines that such possession, custody or control is not in the best interest of the administration of the estate such property may be left with or surrendered to the heir or devisee presumptively entitled thereto. (2) To retain assets owned by the decedent pending distribution or liquidation even though such assets may include items which are otherwise improper for investment of trust funds. (3) To receive assets from other fiduciaries or other sources. (4) To complete performance of contracts entered into by the decedent that continue as obligations of his estate, or to refuse to complete such contracts, as the personal representative may determine to be in the best interests of the estate, but such refusal shall not limit any cause of action which might have been maintained against decedent if he had refused to complete such contract. In respect to enforceable contracts by the decedent to convey an interest in land, the provisions of G.S. 28A-17-9 are controlling. (5) To deposit, as a fiduciary, funds of the estate in a bank, including a bank operated by the personal representative pursuant to G.S. 53-163.1. (6) To make, as a fiduciary, any form of investment allowed by law to the State Treasurer under G.S. 147-69.1, with funds of the estate, when such are not needed to meet debts and

5 expenses immediately payable and are not immediately distributable, including money received from the sale of other assets; or to enter into other short-term loan arrangements that may be appropriate for use by trustees or G.S. 28A-13-3 beneficiaries generally. Provided, that in addition to the types of investments hereby authorized, deposits in interest-bearing accounts of any credit union authorized to do business in this State, when such deposits are insured in the same manner as required by G.S. 147-69.1 for deposits in a savings and loan association, are hereby authorized. (7) To abandon or relinquish all rights in any property when, in the opinion of the personal representative acting reasonably and in good faith, it is valueless, or is so encumbered or is otherwise in such condition that it is of no benefit to the estate. (8) To vote shares of stock or other securities in person or by general or limited proxy, and to execute waivers, consents or objections with respect to such stock or securities. (9) To pay calls, assessments, and any other sums chargeable or accruing against or on account of securities. (10) To hold shares of stock or other securities in the name of a nominee, without mention of the estate in the instrument representing stock or other securities or in registration records of the issuer thereof; provided, that a. The estate records and all reports or accounts rendered by the personal representative clearly show the ownership of the stock or other securities by the personal representative and the facts regarding its holdings, and b. The nominee shall not have possession of the stock or other securities or access thereto except under the immediate supervision of the personal representative or when such securities are deposited by the personal representative in a clearing corporation as defined in G.S. 25-8-102. Such personal representative shall be personally liable for any acts or omissions of such nominee in connection with such stock or other securities so held, as if such personal representative had done such acts or been guilty of such omissions. (11) To insure, at the expense of the estate, the assets of the estate in his possession, custody or control against damage or loss. (12) To borrow money for such periods of time and upon such terms and conditions as to rates, maturities, renewals, and security as the personal representative shall deem advisable, including the power of a corporate personal representative to borrow from its own banking department, for the purpose of paying debts, taxes, and other claims against the estate, and to mortgage, pledge or otherwise encumber such portion of the estate as may be required to secure such loan or loans. In respect to the borrowing of money on the security of the real property of the decedent, G.S. 28A-17-11 is controlling.

6 (13) To renew obligations of the decedent for the payment of money. (14) To advance his own money for the protection of the estate, and for all expenses, losses and liabilities sustained in the administration of the estate or because of the holding or ownership of any estate assets. For such advances, with any interest, the personal representative shall have a lien on the assets of the estate as against a devisee or heir. (15) To compromise, adjust, arbitrate, sue on or defend, abandon, or otherwise deal with and settle claims in favor of or against the estate. (16) To pay taxes, assessments, his own compensation, and other expenses incident to the collection, care, administration and protection of the assets of the estate in his possession, custody or control. (17) To sell or exercise stock subscription or conversion rights; consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise. (18) To allocate items of income or expense to either estate income or principal, as permitted or provided by law. (19) To employ persons, including attorneys, auditors, investment advisors, appraisers or agents to advise or assist him in the performance of his administrative duties. (20) To continue any business or venture in which the decedent was engaged at the date of his death, where such continuation is reasonably necessary or desirable to preserve the value, including goodwill, of the decedent's interest in such business. With respect to the use of the decedent's interest in a continuing partnership, the provisions of G.S. 59-71 and 59-72 qualify this power; and with respect to farming operations engaged in by the decedent at the time of his death, the provisions of G.S. 28A-13-4 qualify this power. (21) To incorporate or participate in the incorporation of any business or venture in which the decedent was engaged at the time of his death. (22) To provide for the exoneration of the personal representative from personal liability in any contract entered into on behalf of the estate. (23) To maintain actions for the wrongful death of the decedent according to the provisions of Article 18 of this Chapter and to compromise or settle any such claims, whether in litigation or not. Unless all persons who would be entitled to receive any damages recovered under G.S. 28A-18-2(b) (4) are competent adults and have consented in writing, any such settlement shall be subject to the approval of a judge of the court or tribunal exercising jurisdiction over the action or a judge of the district or superior court in cases where no action has previously been filed. If the claim is brought under Article 31 of Chapter 143 of the General Statutes, the settlement is subject to the approval of the Industrial Commission in accordance with that Article. It shall be the duty of the personal representative in

7 distributing the proceeds of such settlement in any instance to take into consideration and to make a fair allocation to those claimants for funeral, burial, hospital and medical expenses which would have been payable from damages which might have been recovered had a wrongful death action gone to judgment in favor of the plaintiff. (24) To maintain any appropriate action or proceeding to recover possession of any property of the decedent, or to determine the title thereto; to recover damages for any injury done prior to the death of the decedent to any of his property; and to recover damages for any injury done subsequent to the death of the decedent to such property. (25) To purchase at any public or private sale of any real or personal property belonging to the decedent's estate or securing an obligation of the estate as a fiduciary for the benefit of the estate when, in his opinion, it is necessary to prevent a loss to the estate. (26) To sell or lease personal property of the estate in the manner prescribed by the provisions of Article 16 of this Chapter. (27) To sell or lease real property of the estate in the manner prescribed by the provisions of Article 17 of this Chapter. (28) To enter into agreements with taxing authorities to secure the benefit of the federal marital deduction pursuant to G.S. 28A-22-6. (29) To pay or satisfy the debts and claims against the decedent's estate in the order and manner prescribed by Article 19 of this Chapter. (30) To distribute any sum recovered for the wrongful death of the decedent according to the provisions of G.S. 28A-18-2; and to distribute all other assets available for distribution according to the provisions of this Chapter or as otherwise lawfully authorized. (31) To exercise such additional lawful powers as are conferred upon him by the will. (32) To execute and deliver all instruments which will accomplish or facilitate the exercise of the powers vested in the personal representative. (33) To renounce in accordance with the provisions of Chapter 31B of the General Statutes. (a1) Except as qualified by express limitations imposed in a will of the decedent, and subject to the provisions of G.S. 28A-13-6 respecting the powers of joint personal representatives, a personal representative shall have absolute discretion to make the election as to which items of the decedent's personal and household effects shall be excluded from the carry over basis provision of the federal income tax law and such election shall be conclusive and binding on all concerned.

8 (For reference, see also: North Carolina General Statute Section 32-27--Powers which may be incorporated by reference in (a) trust instrument www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_32/gs_32-27.html and North Carolina General Statute Section 32-26(b)--Restriction on exercise of (powers enumerated in North Carolina General Statute Section 32-27) www.ncleg.net/enactedlegislation/statutes/pdf/bysection/chapter_32/gs_32-26.pdf) Will Exercises and Discussion Questions 1. What are the requirements for leaving a valid will? 2. Explain Sections I through V of Topic 9, Exhibit I (Will.) 3. Would a will written in the testator's (i.e., will-maker's) handwriting have the same legal force and effect as the will included in Topic 9, Exhibit I? Explain your answer. 4. Should a videotaped and/or audiotaped will have the same legal force and effect as the will included in Topic 9, Exhibit I? Explain your answer. 5. Explain the fiduciary powers granted to the Executrix in Topic 9, Exhibit I, Section V (For reference, see the following: a. Exhibit I (A): North Carolina General Statute Section 28A-13-3(a) and (a1)--Powers of a personal representative or fiduciary, www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_28a/gs_28a-13-3.html;

Question: Wills and Trusts are legal arrangements that protect assets and direct their use and disposition in accordance with their owners' intentions.. Wills and trusts are two common estate planning tools you can use to transfer assets to loved ones. The importance of a will and a living trust is thatthey provide a clear, enforceable way to provide for your family and plan your legacy.

Answer the following question(s)

1. What are the key differences between Wills and Trusts?
2. List as many of the benefits you learned about each instrument. Are there any disadvantages? If so, list them and provide an example.
3. Given what you now know about Wills and Trusts, under what circumstances would you use each (give one example for Wills and another for Trusts)