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.
There are several common estate planning errors that North Carolinians should be careful to avoid. One frequent mistake is failing to fill out beneficiary designation forms for the assets that require them. These may include retirement accounts and life insurance policies.
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.
North Carolina residents may point to the management of taxes as the main motive for creating an estate plan. However, there are multiple other reasons why they should consider estate planning.
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.