Concord Trust Attorney

Concord, NC Trust Attorney

Throughout your lifetime, you work hard to provide for your family, acquire assets, and purchase property to call your own. For many, however, planning what to do with lifetime achievements gets put off. Making estate planning a priority allows you to decide how your assets will be divided. You can also determine who will be ultimately responsible for ensuring your wishes are carried out. One way this is done is by using trusts. These allow for a structured release of your assets over the course of a designated time frame. Whether you are anticipating contentious family disputes, wish to pass your assets to children who may not be old enough, or want to designate a charitable organization to receive benefits, trusts allow you the flexibility to create the terms as you want them.

Estate planning can be simplified with the help of the estate planning attorneys at Pinnacle Law. You can rely on their experience and knowledge to help you decide if a trust is right for you. If it is, they can also guide you as to what type will meet your needs. You can create a structured plan that seeks to:

• Protect your and your family’s privacy.
• Avoid certain taxes.
• Limit the complications that spark arguments among beneficiaries.

The Benefits of a Trust

Trusts offer several advantages that other estate planning options do not. These benefits include:

• Bypass Probate: Unlike a will that must go through the probate system, trusts avoid this process, saving time and money for you and your beneficiaries.
• Privacy: Because trusts avoid the probate system, they are not likely to be in the public record. This means that you and your beneficiaries have privacy.
• Tax Advantages: With a trust, certain assets can be protected from estate tax or gifting laws.
• Protecting Assets: When assets are transferred out of the estate through a trust, the assets are often protected from creditors.
• Asset Control: Trusts are legally bound to the parameters you set and are not influenced by outside laws.
• Children as Beneficiaries: With a trust, children can be named beneficiaries, whether they are 18 or not.

Types of Trusts

One of the many benefits of a trust is that there are several options to help fit your needs. The three most common are:

• Revocable Trust: If you prefer to have greater control over the trust’s contents and the assets it covers, this type of trust may be beneficial for you. Under a revocable trust, changes may be made once it has been established. These changes include beneficiaries, adding or removing assets, the guidelines for distribution, and even choosing to sell off the trust.
• Irrevocable Trust: For many who have accumulated greater assets, and have more concerns about taxes, you may choose a revocable trust. These trusts can seem less appealing at first. Once the trust is established, control is turned over to the trustee, the person appointed to oversee your trust. The only way you may make changes is with the signed permission of the trustee and the listed beneficiaries.
• Asset Protection Trust: Sometimes referred to as APT, this type of trust is designed to protect your assets. In your life, you accumulated not only assets but debts as well. With an APT, your assets are protected from creditors, keeping them with your beneficiaries. One benefit of this trust is that you may name yourself a beneficiary. Trusts can begin while you are still alive. With a properly structured trust, you can still utilize your assets without fear of creditors.

Other forms of trusts include:

• Testamentary Trusts: This trust is structured to hold assets until a certain point in a beneficiary’s life, such as turning 18, a wedding, or another date you specify.
• Spendthrift Trusts: This type of trust allows the trustee to modify the terms if they feel the beneficiary is being reckless with the assets.
• Special Needs Trusts: For those who have beneficiaries with special needs, this type of trust can allow assets to be used for their long-term care and enhance their quality of life.
• Charitable Trusts: This can designate assets to a specific charitable organization with the same structure as it would for any other beneficiary.

Establishing a Trust

There are many elements to consider in the establishment of a trust. These include:

• Deciding who will oversee your trust
• Identifying the right beneficiaries
• Choosing the right type of trust for your situation

Working with an estate planning attorney can help ensure that it is handled properly. You can make certain that your wishes are spelled out exactly as you want them.

One benefit of a trust is avoiding probate. However, that also highlights one of its greatest complications: trusts are bound by what you decide to include. Once it is established, that becomes the law of the trust, and it must be followed. That means the process of creating a trust can be long, arduous, and full of legal terminology. To ensure it is done right, you and your attorney will work with your designated trustee to ensure that everything is correct and easy to understand.

FAQs

Q: What Is the Main Purpose of a Trust?

A: Trusts are a way for you to create a legal contract that defines the way your assets should be managed. These instructions can apply both during your lifetime and after your passing. Trusts have several potential tax benefits and provide privacy. They are an appealing option for many who wish to set their own parameters on asset usage and distribution.

Q: What Are the Five Components of Estate Planning?

A: There are many components to estate planning. Therefore, knowing these aspects can empower you to make the right choices as you approach the process. The five main components are:

1. Wills and trusts
2. Durable powers of attorney
3. Medical or healthcare powers of attorney
4. Living wills and advance directives for medical decisions
5. Beneficiary designations

Q: Who Benefits Most From Estate Planning?

A: Estate planning helps you feel more comfortable with how your assets will be handled. Nevertheless, proper estate planning ultimately protects your loved ones or other beneficiaries. In certain instances, they can be protected from:

• Each other
• The IRS
• Creditors
• Those who may wish to take advantage of what you have accumulated

Q: What Is a Trust Fund?

A: A trust fund is a structured estate planning tool. It sets aside money or assets that will be distributed to any beneficiary named in the trust. They are designed to carry out the wishes of the person who is establishing the trust. They are overseen by a designated trustee in cooperation with an estate planning attorney.

Concord Trust Attorney

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You may have many questions about your estate and whether a trust is a viable option for you. Scheduling a consultation with the trust lawyers at Pinnacle Law can help provide the answers you need. They can help you make the right decisions about how your assets should be handled. With proper planning, you can take comfort in knowing that what you have will be handled with care even after you are gone. Contact our offices today.