Having an effective estate plan is essential to obtain peace of mind and ensure that your heirs receive what they deserve after your death. While creating a Will is the most common way to accomplish this, there are other estate planning tools that may be more effective, depending on your circumstances. One valid option is a Revocable Living Trust. These documents allow you to transfer ownership of property to another person at any time. These transfers do not need to go through probate, nor are they subject to taxation. Additionally, because these Trusts are revocable, you can enact a modification or termination at any time. To learn more about your options, talk to a lawyer about Wake Forest Revocable Living Trusts. A knowledgeable trust attorney at our firm can answer your questions and help you determine whether this estate planning tool is beneficial for you.
What is the Difference between Trusts and Wills?
The two most popular ways to provide for your heirs after your death are Wills and Trusts. While these documents have some similar functions, there are essential differences. A Will only has a legal effect once a person dies. An heir or any other interested party must submit the Will to the probate court to begin the distribution of property. A Will may also serve other functions such as naming guardians for children or nominating an executor for an estate.
By contrast, the scope of a Revocable Living Trust is much narrower. These documents do not go through probate and serve no other function except to transfer property. To establish a Revocable Living Trust in Wake Forest, a person must name a trustee to oversee the distribution of the property at the appointed time. A lawyer at our Wake Forest office can provide more information about these different estate planning tools and help determine if a Revocable Living Trust is the right option for you.
Legal Requirements for Creating and Modifying a Living Trust
For the most part, creating a Living Trust is simple. According to North Carolina Revised Statutes § 36C-4-401, these documents do not need to take on a specific form. However, they must include the following key elements:
Once a person forms a Trust, they must take steps to transfer property to its control. This may be as simple as handing over physical items or as complex as retitling real estate. In either scenario, a local attorney with experience handling Revocable Living Trusts can assist with the transferal process. One benefit of a Revocable Trust is that the maker can change or terminate it at any time. This allows for easy modification if the maker acquires new assets, or if a beneficiary is no longer able to take possession of property. An attorney at our firm can help Wake Forest residents to modify Revocable Living Trusts as well as draft new documents.
Consult a Wake Forest Attorney on Revocable Living Trusts
Traditional estate planning involves creating a Will and submitting the document to probate upon a testator’s death. However, this can leave the estate vulnerable to taxation and delay the distribution of property to beneficiaries. One way to avoid many of these problems is to create a Revocable Living Trust. These documents can ensure the efficient and proper transfer of property upon a person’s death. This estate planning tool is a flexible and effective way of providing for your loved ones after your passing. To learn more about Wake Forest Revocable Living Trusts and discuss whether they are right for you, call our firm today.