Creating an Estate Plan in NC
Creating an estate plan is an essential step towards ensuring that your assets are distributed properly to protect both yourself and your loved ones. When you create an estate plan you leave clear instructions on how your assets should be distributed. This protects your estate and allows you to have control over your wealth. Without having an estate plan in place the probate court may distribute your estate through North Carolina’s Intestate Law instead how you wish it to be distributed.
An estate plan includes a will and/or a living trust, but it can also include provisions about your appointed power of attorney, medical directives, and additional considerations.
Differences Between a Will & Trust
A will is a legal document that details your wishes in regard to the management and distribution of your estate. The court will follow the requests detailed within your will about how to distribute your estate. There are benefits of having a will created:
your will is legally binding,
you do not have to retitle your property,
and there is no transfer of ownership of your property.
Creating a will gives you control over the proper distribution of your assets rather than leaving it to the state to decide.
A trust is a document that gives your assets to a trustee (an individual given powers of administration of property in trust with a legal obligation to administer it solely for the purposes specified) who then distributes your estate to the beneficiaries of your choosing. There are benefits of having a trust created:
Your estate does not have to go through the probate process and instead would go directly to your beneficiaries. The probate process refers to the process when a court determines that your will is final and legally valid in order to pass title to your estate and property. To learn more about the probate process, click here.
A trust allows you to have greater control over your assets.
A trust will also allow you to lay out specific terms with what happens to your assets, so that the most care can be granted to your beneficiaries according to your wishes.
A big difference in deciding to create a will or a trust is that a will has to go through the probate process before your assets can be distributed. This process can be long and expensive for your loved ones. A trust however, does not have to go through the probate process but the creation of a trust is more expensive and time consuming to create than a will.
Importance of Creating an Estate Plan
Everyone should consider creating an estate plan. The creation of an estate plan protects your assets and ensures that they go where you want them to go. Failure to create an estate plan leads to the risk that your assets will pass through North Carolina’s intestacy laws. This means that your assets can be distributed in a different way than you intend for them to. Additionally, your intended beneficiaries will not receive your assets. If you have children you risk your child going to a different guardian than who you intend to look after them in the event that you pass away. All of these issues can be prevented through the creation of an estate plan and your protections further strengthened through the creation of a will and a living trust.
Creating an estate plan can be incredibly stressful and time consuming, but having an estate planning attorney can help to guide you through the process in a competent and caring manner. For more information on the steps to create an estate plan, please contact Betham Law, PLLC to schedule a consultation.
