Imagine this: You’ve spent years building a business, saving, investing, and creating a comfortable life for your family. You’ve got an estate plan in place and assume everything will run smoothly when the time comes. But then—because of one overlooked detail—your family ends up with a tax bill in the millions.
Unfortunately, this isn’t just a theoretical horror story. It has happened to real families, and it can happen here in North Carolina too. The good news? With the right guidance, it’s entirely preventable.
When “Good Enough” Estate Planning Isn’t Good Enough
A few years ago, a family in Ohio lost $1.5 million to the IRS—all because of a small paperwork error. On paper, everything looked fine: they had wills, trusts, and estate tax returns filed. But one return failed to properly document the value of individual assets. That small omission cost the family millions.
The real sting? The mistake wasn’t discovered until years later, when it was far too late to fix.
This is exactly the kind of scenario we work to prevent every single day in our practice here in Davidson. Because the truth is, estate planning isn’t about getting documents in a drawer—it’s about making sure those documents actually work when your family needs them most.
Why This Risk Is Growing for Families in North Carolina
Here’s the thing: mistakes like this aren’t rare. And as federal estate tax exemptions continue to shift, the risks are only growing.
Right now, each person can pass nearly $14 million tax-free, and that number is expected to rise. But to take advantage of the double protection available to married couples, the first spouse’s estate must file the proper tax return—even if the estate is well under the filing threshold.
Miss that step, or make a mistake on the return, and the surviving spouse loses millions in available protection. At a 40% estate tax rate, even a “minor” error can create a crushing bill that forces heirs to sell property, liquidate investments, or give up family businesses just to cover taxes.
And this doesn’t just affect ultra-wealthy families. Here in Lake Norman and the greater Charlotte area, we work with plenty of families whose estates aren’t taxable today but could easily become taxable down the road because of market growth, unexpected inheritances, or changes in the law.
The Real Problem: Estate Planning That Doesn’t Evolve
Most people approach estate planning as a one-and-done project. Draft the documents, put them in a folder, check it off the list.
But life doesn’t work that way. Your family, your assets, and the law will all change. If your plan doesn’t change with them, it can fail at the worst possible time. That’s what happened in the case of the $1.5 million mistake.
A better approach? Treat estate planning as an ongoing relationship. That means working with an attorney who checks in regularly, updates your plan as your life evolves, and ensures details like estate tax filings are done correctly—so nothing falls through the cracks.
How We Protect Families in Davidson
At our boutique estate planning firm, we use a legacy planning approach. This is more than just wills and trusts, it’s a system designed to grow with you and protect your loved ones when it matters most. Here’s what that means for you:
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Regular reviews and updates. Your plan adapts as your life, assets, and the law change.
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Tax-smart strategies. We make sure opportunities like portability elections aren’t missed.
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Family communication. Your loved ones understand what to expect and what to do – no confusion, no surprises.
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Trusted guidance. We don’t disappear after the documents are signed. We’re here for your family now, and we’ll be here for them later.
That’s how we prevent costly mistakes like the Rowlands faced.
Protect Your Legacy, Not the IRS’s Bottom Line
The lesson from that $1.5 million mistake is clear: small oversights can have enormous consequences. But with the right planning partner, you can protect everything you’ve worked for and ensure your legacy supports the people you love most.
If you’re ready to move beyond “good enough” estate planning, we invite you to schedule a complimentary 15-minute call. Let’s talk about how to protect your family, your business, and your legacy so your hard-earned wealth benefits your loved ones, not the IRS.
