These days many North Carolina residents are thinking about finally getting an estate plan in order and, understandably, those individuals and families have many questions about the process. The perceived mystery and wealth of estate planning options are, after all, some of the main reasons that people put off getting their estate plan drafted in the first place. One of the most common estate planning questions is about trusts.
So, should you consider a trust for your estate plan? Well, for many people, a trust can be beneficial. But, like most legal questions, the answer to this question is “it depends.” North Carolina residents should consider their most important goals when it comes to estate planning and, in many cases, trusts can help achieve those goals.
For example, if a person’s main estate planning goals are to ensure minimal tax implications for beneficiaries and attempt to achieve a smooth transition of ownership of assets, a trust can definitely be considered in an estate plan. In doing so, the typical procedure is to transfer actual ownership of assets to the trust, which, in many cases, works for the benefit of the person who establishes the trust until that person’s death, and then for another designated beneficiary.
In the end, including a trust in an estate plan is an individual question that needs to be addressed through the lens of the unique financial and family situation of any given individual in North Carolina. Please contact our law firm for more information on trusts and the use of trusts in estate plans.