Charlotte Estate Planning Blog

Many people in North Carolina want to pass on their assets to their children, and they may see the advantages of planning early on for wealth transfer. By creating trusts earlier in life, people can not only put their estate plans in place but also reap significant tax benefits. At the same time, many people are concerned that they could actually impact their children's lives negatively by letting them know that a large trust fund will be waiting for them.

In general, trustees responsible for managing a trust have an obligation to inform the beneficiaries of the trust and how it is being administered. This is one reason why many people increasingly opt for silent trusts when planning for the future. When someone creates a silent trust, they explicitly waive the trustee's duty to inform the beneficiary. Therefore, the trust can be created and tax benefits reaped without telling the future recipient that they can expect to receive a trust fund in the future. Many people opt for silent trusts in order to encourage their children or other young beneficiaries to find their own successful path in life without planning to rely on the funds in the trust.

Taking on the job of estate administration is not something to do lightly. While it may seem like an honor if someone names you executor or if the court appoints you to oversee probate, the truth is that estate administration is a tedious and complicated assignment that requires organization and some financial skill.

The work of an estate administrator includes closing out the accounts of the deceased, protecting the estate's assets and ensuring those assets get to the right people. Making a mistake during this process can lead to severe consequences.

People in Charlotte who are thinking about making a plan for their estates may be considering how they can integrate their commitment to charitable giving. Many people set goals for philanthropy during and after their lifetimes and hope to create a family commitment to charitable support. There are a number of reasons why people may want to include gifts to charity as part of their estate. For some, they may wish to reap the tax benefits of this approach while others may want to share part of their wealth with a cause they have cared about for many years.

When considering making an estate plan that includes charitable giving, it is important to select the right cause. When people choose a charity with which they've been involved in the past or which has special personal meaning, it can make the gift a more positive experience. This is true both for the donor as well as his or her loved ones. In addition, people may want to set aside specific assets to contribute to charity. Of course, cash gifts can always be an important way to pass on a legacy.

Trusts are among the most useful tools available for estate planning in North Carolina. They take many forms and can be designed to fit a particular person's situation. The specific structure of a trust determines how it controls assets, how assets are taxed and whether they're protected from creditors. The person who creates the trust is referred to as the settlor or grantor. Once the settlor transfers assets into a trust, they are managed by the trustee according to the trust's provisions.

Broadly speaking, an estate owner can create a revocable or irrevocable trust. With a revocable trust, sometimes called a living trust, the settlor keeps the right to dissolve the trust and take back possession of the assets. For tax purposes in many states, the settlor of a revocable trust remains the legal owner of the assets. Assets in a revocable trust may be open to attachment by creditors. Revocable trusts are similar to wills in that they can be used to distribute assets after the death of the settlor.