Types of Trusts in Cary, North Carolina
Types of Trusts in North Carolina
Below is a discussion about Revocable and Irrevocable Trusts in North Carolina.
Revocable or Irrevocable?
Trusts are either Revocable or Irrevocable. Simply put, revocable means the person who created the trust change any part of the trust including and up to terminating the trust before that person passes away. Or you can change revocable trusts at any time so long as you have the mental capacity. Irrevocable, simply put, means the person who created the trust cannot change it after it is created. There are exceptions to this rule. Common and frequent exceptions include reserving the right to change the Trustee or successor Trustee and who the beneficiaries are and their portion. In other words, revocable trusts can easily change over time as needed and irrevocable trusts are more final with much less ability to change later. However, with the right planning and drafting, very little is set in stone forever. North Carolina law has some provisions that allow important changes to be made in certain situations and conditions.
Many people use a Revocable Trust in their estate plan. A Revocable Trust is a way to maintain total control while you're alive and appoint a trusted person to take control when you are incapacitated and distribute your assets privately and quickly to your beneficiaries. The trust says who gets what. So long as your assets were transferred to your Trust before you pass away, your beneficiaries do not have to wait on court approval before they receive their inheritance and your estate avoids Probate. With a revocable trust, you make the estate administration easier, private, and a family matter. Revocable Trusts become irrevocable (unchangeable) upon your death or the death of your surviving spouse if your spouse jointly made the trust.
Some people also use an Irrevocable Trust in the estate plan. Irrevocable Trusts have the same benefits as Revocable Trust but have some important distinctions, besides the fact they are less changeable. Irrevocable Trusts are used to protect assets. Creating and funding Irrevocable Trusts provide asset protection in exchange for relinquishing some control and benefit. CLICK HERE to find out if you need a Trust.