The decision to create a will or trust is a significant decision about the legacy you wish to leave behind and the protection of your loved ones' financial future.
In North Carolina, as with other states, establishing a well-crafted will or trust offers numerous advantages. These critical legal documents can ensure your assets are distributed according to your preferences, protect your estate from substantial probate fees, expedite the asset distribution process, and provide a measure of control over your wealth after your passing.
By being aware of the unique benefits that both types of legal arrangements offer, you can determine whether a will or a trust is right for you and your goals.
Soon after you determine which one is right, you can speak with a North Carolina estate planning lawyer at David E. Anderson, PLLC, and develop your new will/trust.
What Is A Will?
A will is a legal document that clarifies an individual’s wishes, regarding the management and distribution of their estate, in the event of their death.
Right after an individual passes away, the court will follow the requests outlined within that individual’s will, ensuring that their wishes are satisfied.
What Are The Benefits Of A Will?
A will offers a wide variety of benefits. Some of the most notable benefits that a will offers are as follows:
- You don’t need to retitle your property when you make a will.
- You don’t need to transfer ownership of your property when you make a will.
- A will is a legally binding document.
Every single one of the benefits outlined above serves to make a will useful as a part of your estate plan. But, even though these benefits are present, this doesn’t mean that a will is right for you.
Some of the most notable disadvantages that a will offers are as follows:
- The contents of a will are considered public information once it is filed with the court.
- Assets and property passed through a will must go through probate.
- Probate can be a long, time-consuming process.
- Your beneficiaries may not receive the assets left to them for quite some time.
- A variety of fees may need to be paid during the probate process.
Each one of these disadvantages can make developing a will a far less desirable option than establishing a trust.
What Is A Trust?
A trust is a legal relationship in which an individual gives certain assets to a trustee. Even though the trustee is given these assets, the assets in question are intended for specific beneficiaries.
Right after the individual whose assets are in the trust passes away, the trustee is responsible for distributing the assets within the trust to the selected beneficiaries.
What Are The Benefits Of A Trust?
A trust offers a wide variety of benefits. Some of the most notable benefits that a trust offers are as follows:
- A trust doesn’t need to go through probate.
- A trust offers greater flexibility than a will.
- The contents of a trust are not public information.
- A trust allows an individual to set specific terms regarding the length of the trust.
- A trust provides for greater control of your property.
Some of the most notable disadvantages of a trust are as follows:
- Setting up a trust can be expensive.
- Setting up a trust will take a fair amount of time.
- You must find a suitable trustee in order to set up a trust.
Even though these disadvantages are present, a trust is still a fantastic way to ensure that your assets go to the right people in a manner that is speedy and efficient.
Why Should You Create A Will Or Trust In North Carolina?
The basic goals of both a will and a trust are, for the most part, quite similar. Both of these legal arrangements allow you to protect your assets and ensure that they are given to the people whom you would like to receive them.
A failure to create either a will or a trust can lead to complications. Some of these complications are as follows:
- Your intended beneficiaries may not receive the assets you wanted them to have.
- Your children may not be placed with the appropriate guardian.
- Your assets may not be divided and/or distributed in the proper manner.
None of these complications are easy to deal with. Your beneficiaries will need to go through a series of lengthy and expensive court processes.
Rather than letting these complications occur, you can develop a will or a trust.
Speak With A North Carolina Estate Planning Lawyer
Developing a will and/or trust for a North Carolina estate plan can begin today. Speak with a North Carolina estate planning attorney at David E. Anderson, PLLC, and we will assist you in developing a will/trust that aligns with your needs.