Creating a North Carolina Revocable Living Trust: Everything to Keep in Mind
Are you looking for a legal document to help you transfer assets into a trust and manage them by a trustee of your choice? A revocable living trust is simply the perfect solution—an often valuable tool for estate planning that can help you avoid probate, minimize estate taxes, and provide for your loved ones after your death.
If you're a resident of North Carolina, you may be wondering how to create a North Carolina revocable living trust agreement. And here are some things to consider:
You'll need to draft the agreement that sets out the terms of the trust. It can be done with the help of an attorney or by using a pre-made form, most of which are available online.
The trust agreement should name a trustee responsible for managing the assets. You can name yourself as the trustee or someone else.
You'll need to transfer your assets into the trust. This can include real estate, bank accounts, investment accounts, and other assets. You'll need to change the ownership of these assets from your name to the name of the trust.
Why Do I Need a Living Trust in North Carolina?
You should create a revocable living trust in North Carolina for several reasons: Here are some of them in detail.
It helps in avoiding probate
Estate tax planning
Avoiding probate is one of the biggest reasons to consider creating a revocable living trust in North Carolina. This is even more critical since the state is yet to adopt the Uniform Probate Code, meaning the probate process can be stressful to maneuver.
Yet, the state still provides an alternative for "small" estates. So, rather than going through the usual probate process, your inheritors can utilize affidavits (sworn statements) to jumpstart their inheritance even faster.
Your beneficiaries may also be eligible for North Carolina's summary administration process, if:
The value of the personal property (after debts are deducted and spousal allowance) is $20,000 or less.
The value of the personal property is $30,000 or less, and your spouse is the sole heir.
This probate shortcut provides an expedited version of regular probate with greater simplicity - regardless of estate size! If there's no surviving spouse to inherit everything, this option won't apply.
Do I Need to Write a Will in North Carolina After I Have Created a Revocable Living Trust?
Having a will and a revocable living trust in North Carolina is still a good idea. Your will can be used to:.
Name a guardian for a minor child.
Direct the distribution of assets not transferred to the trust before your death.
Name an executor to manage your estate and carry out the provisions of your will.
Provide instructions for the disposition of your remains.
Setting up a Living Trust
If you're looking to set up a living trust in North Carolina, here's what you need to do:
Figure out if it should be an individual or joint trust.
Determine which assets will be included in the trust.
Select someone who can assume your duties as a trustee when needed.
Name individuals who'll receive the property from this trust after your passing.
Sign the agreement before a notary public.
Proceed to change titles of items like cars and houses, so they reflect ownership is now under the trustee.
Suppose you want to draft a revocable living trust, Forms.Legal offers free forms to make the process easier for you! All you have to do is fill in the required information and download your form to be signed before a notary public.