Drafting an estate plan in North Carolina may include the creation of a trust to help distribute your assets after your death. Understanding how trusts operate may help you decide which type works best for you.
The staff at Connors Morgan, PLLC strives to provide all appropriate options when it comes to estate planning. Understanding how the inheritance process works may help make it easier to decide which implementations to utilize in your estate plan.
Trust types determine how they operate
There are many trust types to choose from, but the two main trust categories are revocable and irrevocable. A revocable trust allows you, the grantor, to deposit cash, property, and any other number of assets into the trust at any time. You also have the right to make withdrawals before your death. All assets in the trust at the time of your death pass to your named trustee(s).
An irrevocable trust locks in the items you place in it. An irrevocable trust cannot be quickly changed. Grantors utilize these types of trusts to benefit from tax breaks by permanently moving assets out of their care.
Trusts provide direct access to funds
The probate process is a court proceeding that triggers upon death. It requires the administrator of the estate to file documents giving creditors and beneficiaries on notice. A will in North Carolina must go through this process. Probate ends when all debts resolve and the remaining property is disbursed. A trust does not go through probate, thus enabling beneficiaries to quickly receive their shares. Additionally, items in the trust remain safe from creditors.
Estate planning can seem overwhelming, but the attorneys at Connors Morgan, PLLC are here to assist you as you navigate the process.