Secrets of the Wealthy
A few years ago, trusts were viewed as an estate planning option only available to the wealthiest Americans. Luckily, that's quickly changing in North and South Carolina as more and more people experience firsthand the difficulties of not only losing a parent, but losing a parent who didn't have a good estate plan in place. As a result, people in the Carolinas are looking for a better way to transfer property to their children.
Why do the rich set up trusts for themselves and their children? You may have heard about probate. There are many probate horror stories, but probate isn't the only reason to create a trust. Here are three other reasons why you should consider a trust as part of your estate plan.
1. Privacy - Unlike Wills which are public documents filed with the Court, trusts are private. There is no automatic court oversight over trusts as there is with wills. This is why so many celebrities have trusts.
2. Incapacity Planning - A trust can protect your assets if you become incapacitated. By setting up a living trust, you can specify in advance who will manage your money if you are unable to do so.
3. Asset protection - Certain kinds of irrevocable trusts can protect your assets, your surviving spouse's assets, and your children's assets from creditors and predators. If you are in a second marriage and want to provide for your surviving spouse but not his or her next spouse, a trust can help you keep assets in your family line.
And of course, there is also probate avoidance. If you own several pieces of real estate, especially real estate in other counties or other states, a trust can simplify the transfer of your real estate to your beneficiaries or a future buyer. Although trusts cost more than wills upfront, they can save money and time in the long-run because you don't have to go to probate court or wait a specified period of time before you can transfer or sell real estate from the trust.
For North and South Carolina residents in the know, trusts are becoming the go-to vehicle to avoid probate, maintain privacy, protect yourself during a period of incapacity, and quickly and easily transfer property to your loved ones when you are gone. Contact the Law Office of Nancy L. Roberts, PLLC today for more information about how we can help you create a clear, trust-based estate plan.
Take a look at our valuable estate planning book, checklist, and articles with tons of tips and helpful information. They were written by us to help residents of North and South Carolina. You can request your free copy of our book by clicking on the link on this page.