Ten Things You Should Know About the Law
August 6th, 2025 by admin
There are many legal issues which affect us, but some more than others. After practicing law for thirty years and answering over 10,000 questions on and off the air as the host of "You and the Law", here are some of the most important ones.
- LAST WILL AND TESTAMENT. A Will provides who will get your property when you die. BIGGEST MISCONCEPTION: if you die without a Will, and you are married and have children, all your property will go to your spouse anyway. This is NOT SO. Your property will be divided among your spouse and your children, even if they are minors. (Retirement accounts and life insurance are controlled by those specific contracts.)
- DURABLE (FINANCIAL) POWER OF ATTORNEY. A Power of Attorney authorizes an agent to make decisions about your assets. BIGGEST MISCONCEPTION: if you do not have a Power of Attorney, your spouse can act in your stead. This is NOT SO. If you do not have a Power of Attorney, the law does not "write" one for you.
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LIVING WILLS AND HEALTH CARE POWERS OF ATTORNEY. A Living Will sets forth choices you want your health care providers (doctors) to make at the end of your natural life. BIGGEST MISCONCEPTION: health care providers do not really follow your wishes. This is NOT SO. Your health care providers are required by law to follow your express direction.
A Health Care Power of Attorney deals with other health care decisions which need to be made if you are not conscious and able to make them for yourself. BIGGEST MISCONCEPTION: your family can take care of this. The problem is: what family? If you do not have this document in place, your next of kin, your spouse, makes the choice. But after that, it is your children, and if they are scattered about the country, it can be a problem. -
HOMEOWNER'S INSURANCE. Virtually every person who lives in a home they own or are buying has a homeowner's policy. BIGGEST MISCONCEPTION: you are covered for just about anything that happens to your property. This is NOT SO. There are a number of exclusions which routinely apply, and people are very surprised when they have a claim to find out there is either no coverage or inadequate coverage. Review with your agent the most common exclusions and know what they are.
The most important coverages which you may not have are replacement cost coverage, instead of actual cash value (acv), and an umbrella policy that provides another tier of insurance should a serious accident occur on your property. - CO-SIGNORS ON A DEBT. BIGGEST MISCONCEPTION: A creditor tries to collect the money from the primary person on the debt first, such as your friend who asked you to co-sign with him. This is partially true. But what you may not realize is that as a co-signer, you are primarily responsible, too. You are equal in the eyes of the law, and more specifically, the creditor, and the creditor made the loan in the first place, more than likely, because of your good credit.
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MOTOR VEHICLE LIABILITY INSURANCE. Most of us who have a motor vehicle have liability insurance. A common misconception is that if we have a good amount of liability insurance, we have covered our largest risk. However, the largest risk may be caused by the person who runs into you or a member of your household who has no insurance or inadequate insurance.
A disproportionate number of motor vehicle accidents are caused by a small number of drivers. They are often driving without insurance or without adequate insurance. While we should be concerned about coverage for our own negligent acts, it is the acts of these drivers with which you should be most concerned.
If a driver with no insurance, or inadequate insurance, injures you or a member of your household, it could have a serious financial impact on your family, especially if a substantial wage earner is injured and unable to work for an extended period of time. To ensure against these risks, purchase all the uninsurance and underinsurance coverage you can afford. -
WHAT TO DO WHEN YOU ARE IN AN ACCIDENT. Many of us believe that if we are in a minor motor vehicle accident, no investigating officer needs to be called. When accidents occur on busy highways, we often take the line of least resistance, exchange insurance information and then we are on our way.
However, state law requires that we call the appropriate authorities most of the time. If there is property damage of $1,000 or more, or there is any personal injury, you must report the accident. It does not take much property damage on two vehicles to total $1,000 in property damage.
It makes good sense to report the accident at the scene anyway. Liability issues and witnesses should be established to prevent reconstructed memories, which even honest people have when they return home and begin thinking about the increase in their insurance premiums if they think they are at fault. The North Carolina Bar Association has an excellent pamphlet which answers most common questions which occur when you have a motor vehicle accident. They are available at most public libraries around the state, or they may be ordered without charge from the North Carolina Bar Association at P.O. Box 3688, Cary, NC 27519, Attn: Pamphlet Program. See also www.ncbar.org. -
CONTRACTS TO BUY AND SELL REAL ESTATE. A common misconception is that an oral agreement to buy and sell real estate can be enforceable if there are witnesses to the agreement. This is not the law. A real estate contract to buy and sell real estate must be in writing.
The North Carolina Bar Association publishes a useful pamphlet on this topic as well. - ALL SALES OF MOTOR VEHICLES ARE SUBJECT TO THE LEMON LAW. This is not the law. The lemon law only applies to new motor vehicles.
- MOST SALES OF PRODUCTS HAVE A THREE-DAY RIGHT OF RESCISSION. This is not the law. Ce1iain contracts, especially contracts regarding home improvements, do have a limited right of rescission, but these are clearly the exception to the rule. Buyer's remorse, especially involving the purchase of real estate or a motor vehicle, can carry a stiff price. If you have doubts, do not make the deal.
REMEMBER: An informed choice is a smart choice.
Posted in: On the Way to the Courthouse