Hickory Trusts Attorney
Hickory Trusts Attorney
Creating a trust is an important part of estate planning. Many people understandably want some level of control over how the inheritance that they leave behind is distributed to loved ones. One way to do this is by setting up a trust so your beneficiaries have better control over your property and assets. Trusts can also be important tools during someone’s lifetime for protecting assets. If you want to learn more about how this process works, you can work with a Hickory trusts attorney.
What Is a Trust?
A trust is a fiduciary instrument. It allows a settlor (grantor) to transfer assets into the ownership of a trust. The person who is designated to manage the trust is known as the trustee. The terms for the distribution of the assets are explicitly expressed in the language of the trust.
It is possible for the settlor to be the trustee of a living trust during their lifetime. In that arrangement, a successor trustee is designated to take control of the trust upon the incapacitation or death of the settlor/trustee. Even when the original owner of the assets names themselves as the trustee, they legally do not own their former assets because the assets have been transferred into the trust.
A trust offers benefits that a will does not. Trusts, for example, allow the settlor to allocate assets in ways that are not possible through a will. Another benefit is that trusts do not require lengthy amounts of time in probate court.
Reasons Why You May Need a Trust
People seek the unique estate planning benefits of trusts for different reasons. As part of estate planning, trusts help your estate avoid having to go through probate. This can make the task of breaking up your estate much easier on your relatives and beneficiaries. The assets are generally transferred smoothly following the settlor’s death.
People set up trusts for asset protection. Trusts, especially irrevocable trusts, are useful for shielding assets from legal claims and creditors. If you have concerns about being incapacitated, setting up a trust can provide for the management of your assets in the event of your incapacity. This can spare you and your family from the need for a court-appointed conservatorship.
Parents who have special needs children can establish a trust for the ongoing care and support of their children without jeopardizing their eligibility for certain government benefits.
Another common reason why people create a trust is for privacy reasons. Unlike wills, trusts generally do not go through the probate process. Documents that go through the court system generally become part of the public record. For people who are concerned about their privacy, trusts offer an ideal solution.
What Types of Trusts Are There?
You may have heard about living and testamentary trusts. These are two broad categories of trusts.
A living trust is established and funded during the lifetime of the settlor, whereas a testamentary trust is funded upon the death of the settlor, usually through a last will and testament that is drafted with the help of an experienced estate planning law firm.
Another important consideration is deciding whether to use a revocable trust or an irrevocable trust. In a revocable trust, the settlor maintains ownership and control of the trust property. The settlor can modify terms, trustees, and beneficiaries. An irrevocable trust, by contrast, transfers ownership and control of the property to the trustee. This removes control from the settlor, who can no longer make changes.
What Are the Requirements for Creating a Trust in North Carolina?
To establish a valid trust in North Carolina, the North Carolina Uniform Trust Code mandates certain requirements. The settlor must have the capacity to convey their clear intent to create a trust. This means that they are of sound mind when creating a trust. The trust must detail a definite and ascertainable beneficiary (unless it is a trust for animals or a charitable trust).
A trust can only be created to perform lawful actions. One way to make sure that these legal requirements are met is by working with an experienced estate planning lawyer. They can help you set up a will, power of attorney, and the right trust to meet your needs.
Which Option Is Right for Me?
If you want to maintain control over your assets during your lifetime, a revocable trust may be ideal. The settlor can terminate a revocable trust at any time. A settlor can also modify the trust as needed to address evolving needs.
Someone with a special needs child or whose goal is to protect assets from creditors may prefer an irrevocable trust. These types of trusts are useful for individuals seeking to protect assets, reduce taxes, provide for specific beneficiaries, or accomplish charitable giving.
FAQs
Q: What Kind of Lawyer Do I Need for a Living Trust in North Carolina?
A: Having an attorney set up your trust can ensure that the trust is able to perform its lawful purpose. No two areas of law are exactly the same, and trusts fall under estate planning law. By working with an attorney who is experienced in this field, you can benefit from a more well-rounded understanding of how the trust affects your overall estate planning goals.
Q: What Is a Trust in North Carolina?
A: A trust is a fiduciary tool that enables a settlor to transfer assets into the ownership of the trust. The terms outlining how assets are distributed are clearly stated within the trust document. The trustee is the individual who is designated to oversee the trust. Anyone setting up a trust should take time to find a trusted relative, friend, or colleague for this role.
Q: How Much Does a Trust Cost in North Carolina?
A: The cost of creating a trust in Hickory and throughout North Carolina depends on the number of hours your estate planning attorney puts into creating a trust. Lawyers usually bill by the hour or set a flat fee for creating a trust. The amount of time that your attorney spends creating the trusts depends on the complexity of the financial instrument you are creating.
Q: How Do I Set Up a Trust in North Carolina?
A: Setting up a trust is more complicated than setting up a will. There are specific guidelines for how a trust must be set up for it to be valid. Most people hire an attorney to handle the process. An estate planning attorney can explain which trust option is right for you while setting up the necessary paperwork to create the most effective trust for your situation.
Schedule Your Trust Attorney Consultation Today
With the help of an estate planning attorney, you can create the right trust to meet your estate planning goals. Trusts can help protect your assets while you’re alive, and they can provide better control over how assets are distributed after your death than a will. Cody Law Firm can walk you through the entire process. To schedule your consultation, contact our office today.
