North Carolina residents who are interested in using trusts as part of their estate plan should know how many ways they can be used. People’s financial circumstances as well as their financial and estate planning goals will be significant factors.
Trusts can used to provide individuals the freedom from having to actively manage their own assets. They can also be used for those who are able to currently manage their own financial concerns but want provisions in place in case they are unable to do so in the future.
Trusts are also ideal protection tools for assets and income. The majority of states have laws that allow the creation of spendthrift trusts. These types of trusts allow the assets placed in a trust to prevent them from being claimed by a beneficiary’s creditors.
There may be cases in which individuals may want to establish a particular business that may present a significant risk. A trust can be used to make sure that the beneficiaries are able to have a continuous stream of income even if the business fails.
These estate planning tools are commonly created in order to specifically benefit an individual’s children, parents, grandchildren or spouse. They can be used to provide support for the beneficiaries who lack financial resources or are unable to manage their finances well. Individuals who need assistance with creating a personalized estate plan may want to consult with an attorney who can evaluate a client’s financial circumstances, assets and goals and may advise of which type of trust may be most appropriate.
