trusts Archives

How to manage assets for special needs individuals

If the parent of a special needs child in North Carolina plans to leave that child an inheritance, it should be done in a strategic manner. Simply leaving the money directly to the child could result in that person losing his or her access to Medicaid and other types of government benefits. One way to protect assets while retaining some type of control over the money is to create a first-party special needs trust.

Organizing estate plans

North Carolina residents can take certain steps to make sure that their estate plans are in order. Taking these steps can remove much of the burden endured by surviving loved ones who may have to handle their relatives' estates.

Tax law may not harm charitable giving

The passage of the tax reform bill in December 2017 has left some North Carolina residents confused about what it might mean for their estate plans. People may be concerned about charitable giving and the estate tax exemption increase and be unsure of what the changes might mean for them.

Using trusts for adult children

Many North Carolina residents may want to avoid the estate planning mistake of bequeathing their assets directly to their children. Adult children who lack financial maturity could end up squandering direct inheritances.

How to estate plan after the tax law change

The Tax Cuts and Jobs Act (TCJA) will likely change the way that North Carolina residents approach estate planning. The current generation-skipping trust (GST) and estate tax exemption is $11.18 million as of the first day of 2018. That amount doubles for married couples who choose to invoke portability, and it may increase based on inflation. However, as it currently stands, the increased exemption will sunset in 2026.

Estate planning considerations

Many people in North Carolina put off estate planning, and some people pass away before they ever complete their plans. It is important for people to draft their estate plans sooner rather than later so that their families will be left with fewer burdens.

About trusts

A trust is used to transfer certain assets to a trustee, who will manage or hold the assets for the intended heir. North Carolina residents can use a trust if they want to reduce the amount of taxes on their estate, bypass the lengthy probate process and protect their assets. Individuals who create a trust are able specify to who and how the assets placed in the trust will be distributed.

Reason to update an estate plan

Some Charlotte residents might want to revise their estate plan given the changes to estate plan exemptions that were part of the tax bill passed in December 2017. The 2017 exemption limit for couples was $10.9 million, and some people might have designed their estate plans to try to avoid or reduce additional taxes. Vehicles such as life insurance trusts and credit bypass trusts might have been created for this purpose. The new exemption limit for couples is $22 million, and most people will no longer need those tools. However, reviewing an estate plan periodically is important for everyone regardless of their income level.

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.

Email Us For a Response
Orsbon & Fenninger, LLP - Estate Planning

Talk With Us: Schedule A Consultation

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Office Location

Orsbon & Fenninger, LLP
4201 Congress St.
Suite 110
Charlotte, NC 28209

Toll Free: 888-314-8134
Phone: 704-900-3883
Fax: 704-556-9601
Map & Directions

Office Hours: Monday : 8:30am–5pm Tuesday : 8:30am–5pm Wednesday : 8:30am–5pm Thursday : 8:30am–5pm Friday : 8:30am–5pm