Individuals in North Carolina who have a high net worth may want to consider creating a trust. Doing so can make it easier to transfer large sums of money in an orderly fashion after passing. However, it is important that an individual choose the right trustee to oversee this document. In most cases, a child or spouse is not going to be the right person for the job.
Families that hold substantial assets in North Carolina typically seek financial and legal advice when planning their wealth transfers. Every person who writes a will, sets up a trust or plans a business succession must grapple with unique issues, but some matters apply broadly to most estate planning situations. These include family dynamics and the selection of executors or trustees.
Individuals who like to collect valuables may have to work a little harder to ensure that their estate plan accounts for those items. This is because payment and other records may not be found on tax returns or other formal statements. Therefore, North Carolina residents and others may want to use computer software to inventory their items. It may also be a good idea to use software to keep track of appraisals or other records related to an object.
An estate planning tool called domestic asset protection trusts (DAPTs) may make it possible to minimize income and estate taxes. The DAPT is a self-settled irrevocable trust, which means that a person can both create it and be a beneficiary. However, the trustee must reside in a state such as North Carolina that allows one to be created. While the trustee is generally a financial institution, it generally doesn't manage the trust's investments.
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.
North Carolina residents who have ever contemplated cryonics may be interested to learn that there is an estate planning solution for them. For some people, the idea of having their body scientifically frozen when they die with the hopes that it could be revived one day in the future is a viable option. One concern that they may have is how they will be able to afford to live after being revived if they have no access to funds. The answer is a revival trust.
Family dynamics can complicate the process of estate planning in North Carolina and around the country. According to a survey from Key Private Bank, 77 percent of respondents said that this was the toughest issue for their clients to overcome. Those who took part in the survey had clients with at least $2 million in assets. While emotions can be hard to account for in an estate plan, 43 percent of respondents said that it was worse to not have a plan at all.
One reason North Carolina residents may want to include revocable trusts in their estate plans is to make sure that their assets are distributed in accordance with their wishes. There are many ways the distribution can be handled. The grantor can opt to use a different trust for each beneficiary. Assets can also be distributed all at once, apportioned into equal or unequal parts, allocated to favorite charities, held in a trust to be used by great-grandchildren and more.
Some Charlotte residents may not immediately recognize why they need an estate plan. While marriage and children prompt many to consider the future of their assets and how to distribute them, younger or single people may not see the need for a will, trusts or other estate documents. This is especially true for people who are not particularly wealthy. However, there are a number of reasons why people of all backgrounds may want to consider an estate plan to benefit themselves and those they love.
People in North Carolina should strongly consider developing an estate plan, even if they do not have any children or close relatives. An estate plan can be very useful in helping people to manage their assets and prepare for the unexpected events that may occur in their life.