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Do You Need a Will or Do You Need a Trust?
Estate planning serves many purposes and a big one is to allow you to control what happens to your assets once you die. This applies to people with small estates just as much as those with large ones. There are really only three ways to pass your estate to heirs after you die if you cannot or do not have beneficiary designations for the asset: 1) Last Will and Testament; 2) Trust or 3) by intestate where the state laws dictate who gets your assets.
- Will: Your Will is a signed, witnessed and notarized document that sets forth how you would like to have your property distributed after your death. You can change it throughout your life and use it to appoint a guardian for any minor children. However, a Will does not take effect until after you die, and has to go through the Court Probate process, which typically takes 1-2 years in North Carolina. In some estate plans, where the majority of your assets transfer through a Living Trust, you use a different type of Will called a pour-over Will. This Will does not express your wishes in detail, but simply directs any assets that end up in probate be given back to your Trust, where then the assets are distributed to your heirs outlined in your Trust. This would include assets owned in your name but not in the Trust, checks that may come in your name after you die and other assets that somehow missed being owned by the Trust, thereby causing a probate proceeding after you are gone.
- Living Trust: There are many different types of Trust, but a Living Trust provides for management of your assets both during your life and after your death. During your life, you can serve as the Trustee of your own Living Trust, managing the assets for the benefit of yourself and the beneficiaries of the Trust. You also name a back-up person to manage your Trust in the event of your incapacity during your lifetime and certainly after your death. None of this requires court intervention and oversight, and therefore, keeps your financial information out of the public record, avoids high estate court fees, and avoids probate court, which means your assets are never frozen. You can also use Living Trusts to plan for your incapacity and to protect your assets from complete loss due to healthcare costs.
Deciding to create a Trust in addition to a Will can be a good move for certain situations, but there are additional costs in the setup of the Trust. Assets must be transferred to the ownership of the Trust and the Trust must be actively managed. For smaller estates, especially those that would qualify for the federal estate tax exemption (currently $11.2 million for an individual, although it frequently changes), setting up a Trust is practical if it helps streamline the assets distribution process thus saving all the headaches and costs of Probate, or if it provides for control over assets for minor children or grandchildren.
Trusts are also necessary if you have dependents or loved ones with special needs. Disabled loved ones may need assets throughout their life but will need those assets managed in a way that still allows access to governmental assistance and disability benefits. You can set the Trust up so that it will continue to be managed by a Trustee for the child's benefit after your death, to ensure assets are available to support your special loved one.
To determine which option, or combination of options, is best for you, it is wise to talk to an experienced estate planning attorney. There are many different types of Trusts and financial instruments you can use that when coupled with a Will, can help you manage your assets for retirement and streamline your estate. The estate attorney will sit down with you to discuss your family situation and your goals and then help you craft a plan to meet those needs. This is a process that is truly customized to you.
For assistance in North Carolina, reach out to the team at Thomas Walters Probate and Estate Planning. Setting up and managing estates is all they do, and they have a over 80 years of combined legal experience, plus ideas that they will bring to help meet your specific situation.
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In Memory of Shayla Walters
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| Stacey Walters and daughter Shayla |
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It is with the saddest of hearts that we write to let you know of the passing of Stacey's beautiful daughter Shayla. This is one of the very last Snapchats of her that we wanted to share. As you all know, Shayla was the light of Stacey's life and while she was severely disabled, she brought so much joy and happiness in the 10 years Stacey and her family were blessed to love and care for her! It was completely unexpected as Shayla was not sick, which has made it all the more difficult. But Stacey and her family take comfort in knowing that she is in a much better place, no longer suffering with her physical limitations and disabilities.
Because Shayla forms the corner stone of our law firm, and because many clients and acquaintances frequently ask how Shayla is doing, we felt it was only appropriate to share in our loss. Thank you in advance for your prayers, love and support in the days, weeks and months to come. God has blessed Stacey and the firm with great clients and for that, we will forever be grateful! Shayla's memory will live on, as she has lifted our firm to a better place and plans are in the works for a non-profit in her memory to support other families with such special angels.
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Estate Planning Seminar Dates
Register today! 800-769-1561
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Raleigh
Wednesday, June 13
Coquette Brasserie
4351 The Cir At N. Hills St. #119
11:00am-12:30pm
Lunch following
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Apex
Monday, June 18
Peak City Grill
126 N. Salem
6:30pm-8:00pm
Dinner following
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Durham
Tuesday, June 19
Bocci
5850 Fayetteville Rd.
6:30pm-7:30pm
Dinner following
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Pinehurst
Wednesday, June 20
Nina's
111 Central Park Ave, #L
6:00pm-7:30pm
Dinner following
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Client Testimonial
"Dear Stacey, you have been a great help in the entire process of our estate planning. Without you, it would have been impossible for me to finish it alone. Your knowledge of the Law and your explanation of some very difficult questions were unsurpassed. I would recommend you to anyone interested in estate planning."
- Mr. Whitfield, Haw River, NC
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Locations
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Chapel Hill:*
1777 Fordham Blvd. Suite 101
Chapel Hill, NC 27514
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Raleigh-
Main:
Access Office Center
8801 Fast Park Dr. Ste. 301 Raleigh, NC 27617
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ExecuBusiess Center
10130 Mallard Creek Rd. Ste. 300 Charlotte, NC 28262
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4904 Waters Edge Dr.
Ste. 260
Raleigh, NC 27606
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Charlotte-
South:
Ballantyne Business Center 13850 Ballantyne Corporate Pl. Suite 500
Charlotte, NC 28277
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Greensboro:*
Byron Offices Suites
7-B Corporate Center Dr. Greensboro, NC
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* by appointment only
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