Welcome back. We are here to talk more about trusts and how you can better understand their uses when estate planning in Raleigh NC. If you missed our previous blog be sure to check back here for more.
An oversimplified way to look at a trust is to think of it as a living person - let’s call it Bob. As the grantor you have given some or all of your assets to Bob – these assets now belong to Bob; (the bank account is now in the name of the “Your Revocable Trust.”) The trustee can be the grantor, a trusted family member, a close friend, or a corporation such as a bank or other entity. The trustee’s job is to tell Bob what to do with the assets he now possesses and Bob can only carry out those requests. Again, this is an over-simplified explanation of trusts but hopefully serves as an illustration of their function.
Trusts are very nuanced and come in a variety of shapes and sizes. There are revocable trusts, irrevocable trusts, special needs trusts, testamentary trusts, and many others which may be of benefit to you and your heirs. The beneficiary of the trust may or not be the grantor, for example, Sue creates a trust for the benefit of her minor children. Sue can serve as the trustee and in the event of her death a successor trustee named in the trust document will take over. Sue created the trust for the purpose of ensuring her children are cared for after she has gone without the assets passing through probate and without the need for the court to appoint a guardian to manage the children’s funds.
A popular misconception is that only rich people have trusts, but this couldn’t be farther from the truth. Trusts can be a key component in estate planning in Raleigh NC or for the ongoing care of yourself or loved ones. The value of the assets in the trust is not what’s important, protecting those assets is.
To inquire about trusts and to find out if a trust is right for you, contact us at Eldreth Law Firm, PLLC. We will be happy to discuss trusts with you help determine what best suits your needs and wishes in your estate planning in Raleigh NC and the overall process.
If you don’t have an estate plan in place or haven’t reviewed yours in several years, now might be the best time to start. Our attorney is here to help you get your estate planning in Raleigh NC in order and ready should you pass in an untimely manner or become incapacitated at some point. It’s better to be safe than sorry when it comes to an estate plan. Contact our attorney to get started estate planning, today.
Eldreth Law Firm | Estate Planning Raleigh
As always, feel free to contact us with any questions or concerns you may have about estate planning. Also, contact our attorney to schedule a consultation if you have yet to start estate planning. It's never too early to make plans for your wishes upon death. In addition, our attorney is here to help you with all your legal matters, whether it be estate planning, small business, trademarking, copyrighting, and other legal matters.