According to the American Association of Retired Persons (AARP), individuals in North Carolina and throughout the country should have a trust instead of a will. Trusts are separate entities that hold assets for the benefit of one or more individuals. Therefore, there is no need to go through probate when an individual dies, and there is no possibility of a will contest from a family member or other party.
Why trusts may be better than wills
Why trusts can help the estate planning process
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.
Getting started with succession planning
If business is going well, you probably do not want to think about stepping down from the helm. In fact, even if your company is going through a tough time, you may want to be the one to see it through to better days. Unfortunately, this cannot go on forever. At some point, you will have to let go of your role in the family business and turn operations over to someone else.
Spendthrift trusts provide peace of mind
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.
Tom Petty's heirs in conflict over estate plan
North Carolina fans of the late musician Tom Petty may be aware that his family has been locked in a battle over his estate. At issue is the ambiguity of the language used in his estate planning documents.
