Effective estate planning presents people with a variety of options. While these options allow for great flexibility in securing your family’s financial future, they can also create confusion. While most people understand the concept of a traditional Will, this is not always the best or only way to move property or protect real estate after your death.
Many people choose to establish a Trust as a way to protect their families. A Trust can help transfer property without the hassle of probate, as well as protect real estate if a person needs to enter a nursing home. However, to have the intended legal effect, there are certain legal guidelines that a Trust must follow.
If you are considering your plans for the future, speak with a seasoned attorney about Trust planning in Raleigh. A conversation with legal counsel can help you better understand Trusts and how to properly use them.
Trusts are one of the most common ways that people transfer property. A simple Trust allows a trustee to distribute property to designated people, known as beneficiaries, at a specific time. This may happen upon the Trust maker’s death or at any time in the future.
Of course, Trusts may serve various purposes. Many people use these documents as a substitute for a traditional Will, since Trusts are generally not subject to the probate process. However, Trusts may also function as a way to:
In short, Trusts are a versatile tool that allows people to transfer property to others with minimal court or government interference. A knowledgeable attorney can provide more information about the various forms and functions of Trusts in Raleigh.
Local laws only outline several requirements for creating a Trust. According to North Carolina General Statutes § 36C-4-401, a Trust must name specific property, nominate a qualified trustee, and name at least one beneficiary. Outside of these requirements, a Trust may take on any form.
It is vital to understand the role of the trustee when planning a Trust in Raleigh. Under N.C. Gen. Stat. § 36C-8-801, a trustee has a duty to administer the Trust in good faith and to follow the document’s purpose. This involves holding the property in their possession and distributing it to the named beneficiaries at the correct time.
A trustee may be any person over the age of 18 who is capable of performing this role. In general, only a court can determine that a person is unable to carry out this duty. A skilled local attorney can help parties identify trustees who are able and willing to serve this role for a Trust.
Forming a Trust can be a powerful and effective way to transfer property. Not only can a Trust avoid the complex processes that come with probate, but it can also help prevent the loss of assets through taxation. As such, these documents are a useful estate planning tool for many people.
If you wish to secure your family’s finances and prepare for the future, consult a lawyer who focuses on Trust planning in Raleigh. An attorney can explain your options and help you craft documents that suit your needs and satisfy any legal requirements. Contact our legal team today to set up an initial strategy meeting.