trusts Archives

Choosing trustees

People in North Carolina should give careful consideration when selecting a trustee option. In many cases, it may be necessary to look outside of one's own family to choose the right person to handle complicated estate matters or to have someone within a reasonable distance who can fulfill the duties appropriately.

Estate planning for everyone

Estate planning is something every North Carolina resident should do regardless of how much money they have or how old they are. If individuals have no legal provisions in place when they die, a variety of fees and court costs can be assessed on any money and other assets that may have been meant for a loved one.

Estate planning is emotional as well as financial

For people in North Carolina, preparing for the future includes an estate plan. Estate planning helps to ease the life of heirs and make a family's emotional pain after the death of a loved one far less complicated, as the distribution of assets is provided for through the use of instruments such as wills, trusts and insurance. However, estate planning isn't only a financial issue that can be used to pass down real and personal property. The estate planning process can also be a time to transfer memories, thoughts and values from elders to their surviving loved ones.

Estate planning and tax liability

North Carolina residents who leave property to their loved ones may not realize how taxes can affect beneficiaries when they inherit an estate. South Dakota Congresswoman Kristi Noem has come forward to warn others about how the federal government's "death tax" has affected her family. However, according to some experts, it is possible that the problem could have been avoided with a different estate planning strategy.

Cy Pres doctrine allows charitable trusts to adapt and continue

When people in North Carolina choose to form a charitable trust, they might want them to serve their purpose in perpetuity. Unlike other trusts, a charitable trust has the option of continuing its mission indefinitely. This open-ended feature on some charitable trusts, however, could result in the trust outliving the existence of its beneficiary. An educational institution closing its doors represents an example of a beneficiary ceasing to exist. In this situation, the Cy Pres doctrine sanctions the alteration of the trust so that it can continue.

Why everybody should think about estate planning

North Carolina residents or anyone else with assets should consider creating an estate plan. Doing so may provide a level of control over who gets cash inside of a 401k or who gets ownership of a house. An estate plan may also protect beneficiaries who aren't good at managing money from potentially squandering their inheritance. A trust may be an effective tool that may create guidelines for how an inheritance should be used.

Divorce and estate planning

People in North Carolina who are getting a divorce may want to consider changing their estate plan as well. If a person dies before the divorce is final or shortly after the divorce, the ex- or soon-to-be-ex-spouse could end up with the person's assets.

When an irrevocable trust needs to be decanted

Traditionally, the only way to change an irrevocable trust is with the permission of beneficiaries and costly, time-consuming legal action. The idea behind an irrevocable trust is that the assets in it are outside of the control of the grantor and that it remains unchanged. However, some states, including North Carolina, now permit a process known as decanting that changes the irrevocable trust.

When an asset protection trust may make sense

North Carolina residents who are looking to do what's best for their children may be interested in creating a spendthrift trust. This may be especially useful for those who may not have had experience handling money who may otherwise be inheriting a lot of it at once. Such trusts can either be created while a person is still alive or triggered upon a person's death.

The various types of trusts

North Carolina residents may take advantage of a variety of trusts as part of their overall estate plan. For instance, a testamentary trust is one that is included in a will. The will spells out which assets the trust is to hold after the testator passes away, and they do not avoid probate. However, it may avoid the cost of trying to create and fund a trust while still alive.

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