Trust Attorney in Leland, NC

Estate planning and trusts might be confusing and complicated because they are associated with aging and dying. But really, they are just processes that help people manage their assets to eliminate uncertainties. Plus, they provide some excellent benefits.

In this article, we will consider trusts in Leland, NC, and everything you need to know about them. For a free consultation regarding the creation of a trust, contact Bespoke Estate Law today.

What is a Trust?

A trust is an estate planning tool that an individual can use to control their assets, even when they are no longer physically able to. You can think of it as the transfer of assets from one party (called the settlor) to another party (called the trustee) for the benefit of a third party (called the beneficiary) once some conditions have been met. Sometimes, there are no conditions, but the general purpose of any trust is to ensure a smooth asset transfer to the beneficiary. It is typical for the settlor to be the trustee, for the settlor to be the beneficiary, or even for the trustee to be a beneficiary.

N.C. Gen. Stat. §36C is the principal statute regulating trusts in NC, and there are generally two types:

Revocable Trusts

As the name implies, revocable trusts can be changed or revoked by the settlor during their lifetime. With these, the title in the assets under the trust will be transferred to the beneficiaries. However, they will only enjoy its benefits once the settlor dies. When a settlor dies with a revocable trust, it becomes irrevocable.

Irrevocable Trusts

Once created, irrevocable trusts cannot be changed or terminated by the settlor without the permission of all the beneficiaries, according to N.C. Gen. Stat. §36C-4-411. Generally, it is best practice for irrevocable trusts to specify that the settlors intend that the trust be irrevocable. These trusts often reduce estate taxes and protect assets from creditors.

How Can You Create a Trust in Leland, NC?

N.C. Gen. Stat. §36C-4-401 provides various methods through which a trust can be created. Some of them are:

1. Transfer property to a trust for a trustee to manage during your lifetime or upon passing through a will. This can also be achieved by designating a trust as the beneficiary of life insurance or any other death benefit.

2. Declaring that you now hold property you own as a trustee when transferring the title of that property is not required by law.

3. By order or decree of a court.

It's important to note that while a written trust is preferred, trusts may be made orally. However, the creation of any trust must also meet specific requirements.

Requirements for a Trust in Leland, NC

Under N.C. Gen. Stat. §36C-4-402, these are:

• The settlor must have legal capacity.

• The settlor must indicate an intention to create the trust.

• The trust has a beneficiary that can be ascertained now or in the future.

• The trustee has duties to perform.

• One person cannot be the sole trustee and sole beneficiary.

How Long Can a Trust Last in Leland, NC?

A trust can last indefinitely as long as it has not fulfilled its purpose but can still fulfill its purpose. So, for instance, when all the beneficiaries of a trust die and it can no longer fulfill its purpose, it will terminate.

However, when a non charitable trust is created for an unascertainable beneficiary, it may be enforced for up to two years. §36C-4-409. A trust will also terminate once its purpose becomes unlawful or contrary to public policy.

Can you Contest a Trust in Leland, NC?

Yes. If you believe anything suspicious has happened in creating a trust, you can contest it in court. You can also contest the actions of a trustee.

More specifically, a trust is contestable if it doesn't meet the statutory requirements or if you can prove that it was induced by fraud, duress, or undue influence. However, you must have legal grounds to contest the trust. N.C. Gen. Stat. §36C-6-604, however, provides that any action to challenge the validity of a trust must be brought within three years of the settlor's death or 120 days after the person contesting receives written notice of the trust's existence, whichever is earlier.

Why Do You Need a Trust Attorney in Leland, NC?

A trust attorney can help with multiple aspects of a trust.

Trust Creation

It might be relatively easy to create trust, but good and effective trust requires legal advice. First, there are multiple types of trusts, so selecting what will work for you is essential. Since trusts are primarily governed by themselves, they must be as unambiguous as possible, using carefully chosen terms only a lawyer can help with.

Transferring Assets

After determining what assets to place under the trust, those assets must be transferred, which could involve a lot of paperwork.

Ensuring Legal Validity

You could opt for certain judicial proceedings to establish the legal validity of a revocable trust, and an attorney will be essential for that.

Contesting a Trust

An attorney can help by critically examining a trust and its circumstances to determine the best grounds to contest it.

Contact Us for Your Trust Needs

Whatever aspect of a trust you need assistance with, Bespoke Estate Law can help. We have extensive experience with trusts in Leland, NC, and will happily discuss your needs. Trust a law firm that has helped hundreds of clients enjoy a bright future. Call for your consultation today. We are a leading estate planning firm in Myrtle Beach, Leland, Wilmington, and all of the surrounding areas.