Charlotte Estate Planning Blog

Trusts can be an important part of the estate planning process for many people in North Carolina. Since they offer greater privacy and flexibility, people may opt to create a trust to handle matters in a way that may be far more challenging when using a will. Trusts are one part of a complete estate plan that can also provide additional discretion for their creators as well as their beneficiaries. Many people want to avoid probate court as it is a public process that can open assets up to scrutiny. In addition, probate costs can be expensive and the process lengthy, especially when significant assets are involved. Trusts distribute assets without going through this process.

In addition, a trust can also be structured to protect against future incapacity. When the trust is created, the creator can remain the trustee controlling the funds. The trust itself will own the assets placed inside. However, when the trustee becomes incapacitated, the trust can be structured to ensure a successor takes over to manage the property. Trusts can provide greater control over how assets are distributed to heirs, preventing the funds from being lost to irresponsibility or to a divorce settlement.

When North Carolina residents draft their estate plans, they are sometimes worried that their heirs will be unprepared for a significant inheritance and fritter away assets that they have worked hard all of their lives to accumulate. These concerns may be especially pronounced when heirs are financially inexperienced, have acted irresponsibly in the past or are struggling to overcome substance abuse problems. Placing assets in a spendthrift trust is an effective way to address this issue and protect both estates and heirs.

The language used when drafting the trust documents names trustees and outlines how much control they will have over how and when assets are distributed. Distributions can be scheduled to take place at specific times or left to the discretion of the trustees. Testators commonly include provisions that withhold distributions until heirs reach a certain age or achieve milestones such as graduating from college or maintaining sobriety for a designated period of time.

Parental expectations about their children often determine the structure of North Carolina estate plans. For single parents, the stakes tied to estate planning may be even greater. In cases where a single parent dies leaving a minor child, the child might be forced to leave the area in order to live with the other parent or a different relative. The state of the relationship with the other parent is often a major factor in making planning decisions.

It is common for the custodial parent to believe the child's other parent is the best option to take over custody in case of death or incapacity. For some parents though, this option is untenable. If the custodial parent does not want the other parent to step in, he or she will need a network ready to act in the child's best interests.

If you feel like you are struggling when it comes to estate planning, you are not alone. Many North Carolina residents wonder what details will help them best express their end-of-life wishes and it can be difficult to even know what those wishes are.

For you, the planning process may be even more difficult because you have concerns that your family will fight over your remaining estate or that your heirs will be irresponsible with their inheritances. Fortunately, you have the opportunity to address those concerns and possibly lessen the likelihood of conflict while creating your plan.