Living Trust in North Carolina
You might have considered the things you’d like to leave to your loved ones after you pass away. But have you ever thought about what you don’t want to leave them? How about complex probate proceedings? Delays in getting access to property? Uncertainty about how to handle things? Chances are, you’d like to spare your family those experiences if you could.
The good news is that with a living trust, you can. At Brady Cobin Law Group, PLLC, we help clients incorporate living trusts into their estate plans so that property can pass directly to beneficiaries without the delays and expense of probate proceedings.
What is a Living Trust?
The type of trust popularly referred to as a “living” trust is a revocable trust you set up and manage during your lifetime. Because it is revocable, you can change the terms or dissolve the trust entirely at any time if you choose.
A trust is a type of arrangement for holding property. The person who donates property into the trust is generally known as the grantor. The person who manages the property is the trustee, and the people who enjoy the proceeds from the trust are the beneficiaries.
Most clients who set up living trusts serve as the trustees and beneficiaries of their own trusts, and of course they are the grantors as well. This allows them to use their property in exactly the same way as if they’d never created a trust.
The Benefits of a Revocable Living Trust
Why go to the trouble of creating a trust if it doesn’t effectively change anything during your lifetime? The difference is what happens after you pass away.
If you have properly funded your trust in accordance with guidance from your estate planning attorney, then when you pass, your assets will go directly to the alternate beneficiaries you’ve named in advance. Your property does not sit tied up in probate court for a year while an executor works through legal requirements. Instead, your successor trustee distributes property in accordance with the terms of the trust. All of this happens in private, unlike probate proceedings which become part of the public record.
Funding a Living Trust
In order for your trust to function the way you want it to, you need to transfer ownership of assets into the name of the trust. Real estate, vehicles, and other types of property with a title will need to be retitled in the name of the trust.
Some accounts may also be transferred into the trust, although it is also possible to have many accounts pass directly to beneficiaries through a beneficiary designation or payable on death provision. Certain assets, such as retirement accounts and insurance policies, require special treatment, so it is a good idea to consult your estate planning attorney as you review assets to determine which should be moved into the trust and how to accomplish the task.
An Estate Planning Attorney Can Craft a Custom Living Trust to Meet Your Needs
The experienced team at Brady Cobin Law Group, PLLC can prepare a living trust that will reduce the burden on your loved ones after you pass away while allowing you to enjoy full control over your property during your lifetime. To learn more about the benefits of a living trust and how this document coordinates with other components of your estate plan, schedule a consultation with our dedicated estate planning attorneys today.