The purpose of effective estate planning is to transfer ownership of property to heirs with as little hassle as possible. While many choose to rely on a Will to serve this purpose, there are other options for estate planning that can help avoid legal entanglements after your death.
One way to secure the financial future of your heirs is to create a Trust. These legal documents transfer property to an heir at an appointed time, either upon your death or immediately after signing. Additionally, a Trust can transfer property free from taxation and avoid the lengthy probate process. To learn more about creating Trusts to protect your heirs in Cary, reach out to a knowledgeable attorney at our firm.
Creating a Trust allows parties to control the distribution of the property within it. According to North Carolina General Statutes § 36C-4-401, a Trust may take on any form as long as it does the following:
A local attorney with experience creating Trusts can further explain what requirements are necessary to protect one’s heirs.
The probate courts exist to ensure that a decedent’s property goes to the correct heirs. However, the courts only have the right to exercise this power after a person’s death. Additionally, they only have jurisdiction over assets named in a Will or if a person dies intestate.
Transferring property into a Trust can circumvent the need for probate because assets that sit in Trust are no longer the property of the original owner. As a result, they are not subject to the probate process. This is true regardless of the designated date at which the property transfers to the heir. A skilled lawyer can further explain how a Trust ensures that heirs receive the assets without the hassles of probate in Cary.
One common function of a Trust is to provide benefits to a child under specific conditions. For example, a Trust may distribute cash to a person once they reach their 18th birthday. In the meantime, the trustee must keep that cash in a bank account until the child’s 18th birthday. In this way, a Trust can protect an heir until they can take legal control over property.
A Trust can also help to transfer property to heirs without the threat of taxation. While Cary is in a state that does not impose an estate tax, the federal government will take a portion of an estate that reaches a certain value. Similarly, if an heir lives in a state that does impose an estate tax, that state can claim a portion of property that moves through probate. Transferring property through a Trust helps to avoid any taxation that may affect an heir.
Trusts have become a popular tool in estate planning. This is because property that moves through a Trust is immune from taxation and does not have to go through the probate process.
If you wish to secure the future for your loved ones, speak to a lawyer about creating Trusts to protect your heirs in Cary. Our skilled legal team can help you identify your assets, form the necessary Trust documents, and ensure that your final wishes will be achieved. Contact us today to get started.