There are many different types of trusts that North Carolina residents can have as part of their estate plan. The most common one is a grantor trust, and it makes it possible for assets to avoid probate in the event that the settlor passes away. While alive, an individual can be a trustee and a beneficiary. In fact, the individual who creates the trust can also revoke it at any point.
Incentive trusts only allow for beneficiaries to receive distributions if certain criteria are met. If a trust has multiple beneficiaries, conditions can be placed on all of them or just a specific individual. Those who have children or grandchildren with special needs may benefit from a special needs trust. When created properly, it allows a beneficiary to both receive government benefits and receive assets from the trust itself.
Individuals who want to leave money for charity can do so by creating a charitable trust. A charitable trust may allow for the grantor or others to benefit from assets in the trust while alive. After a beneficiary dies, a charitable cause receives whatever is left. An attorney may be able to provide more guidance as to how to structure this type of trust to best meet a person’s needs.
The use of a trust may help a person meet his or her estate planning needs. For instance, those who are looking to protect assets from creditors may want to use a trust to keep items off-limits in a lawsuit. A trust may also be helpful in the event that a parent doesn’t want a child to have direct access to an inheritance until a certain age.