Creating a plan for your future is incredibly important regardless of your age. One major part of that is drafting legal documents that help ensure your estate is distributed to your beneficiaries according to your preferences. Creating a trust is one way to accomplish this.
Contacting a law firm with experience in creating trusts can provide you with up-to-date information and legal guidance that ensures your intentions are carried out with your trust. Lassiter & Lassiter has been supporting Statesville residents with trust creation for over 50 years. Our dedicated staff can break down trust law so that it feels less overwhelming, then draft a trust that meets your needs. We can also help you create more than just a trust by building a thorough estate plan. Our estate planning attorneys can help you draft a comprehensive estate plan to give you some peace of mind as you move forward.
There are many types of trusts in Statesville, North Carolina, but there is a simple formula that they all follow. One person transfers property to a second person to hold and manage for the benefit of one or more third parties. Trusts can be difficult to understand, so the first step is to have an idea of the language that is used when discussing trusts:
To create a trust, certain elements must be met as outlined in the North Carolina Uniform Trust Code. Not only must the settlor have the capacity to convey the trust as well as a clear intention to create the trust, but there must also be an ascertainable beneficiary and a competent trustee that has duties to perform in the trust. The settlor also cannot be the sole trustee and sole beneficiary. If these conditions are not met, the trust will not be valid. For this reason, it is important to speak with an experienced trust attorney like Lassiter & Lassiter. We can help ensure your trust is legally binding and valid.
Though trusts can be created for many reasons and intentions, there are two main categories that they fall into: a living trust and a testamentary trust. The difference between the two trusts is when they are created.
Trusts can be created while the settlor is still alive or after they have passed. If the trust is created during the settlor’s lifetime, it is called a living trust. It will be initially funded while the settlor is still alive. It will typically include provisions for how you would like your assets to be managed and then distributed after you pass away. There are two types of living trusts:
Trusts that take effect after the settlor’s death are called testamentary trusts. They are typically written into a will and only take effect after the settlor dies. An example would be setting up a trust that holds your assets if you pass before your children reach the age of 25. A testamentary trust can usually be altered by the settlor before their death but becomes irrevocable after.
A living trust is created while the settlor is living, but there are two different types. A revocable living trust allows the settlor to alter the trust because they maintain ownership and control of the property held by the trust. An irrevocable trust transfers ownership and control of the property within the trust to the trustee. The settlor can no longer alter the trust because they do not have ownership of the property.
The main advantage to creating a trust over a will is that a trust helps your beneficiaries avoid probate. Probate can be an expensive and lengthy process, as it is a court process that oversees the payment of any debts and transfers of your property after your death. Avoiding probate can help make your passing easier for your loved ones.
Similar to a will, a trust can be contested. The contest to the trust could be successful if the settlor was forced, deceived, or unduly influenced when the trust was being created. It could also be successful if the settlor was mentally incompetent. Finding an experienced lawyer can help ensure your trust accomplishes what you need and cannot be successfully contested.
You are legally able to create a trust without consulting a lawyer, but it is not typically advised. The laws and requirements to create a trust can be complex and confusing. A knowledgeable trust attorney is familiar with the laws surrounding trust creation and can help ensure the trust is legally binding and valid.
For over five decades of experience, Lassiter & Lassiter has been a trusted law firm in Statesville. We have provided many services to our community throughout our history, ensuring our neighbors’ trust and estate planning needs are handled professionally and compassionately. Our legal representation has a personal touch that comes from years of dedication to our clients, as well as the confidence that comes from being a long-standing law firm in our community. We built our law firm on the importance of family and work diligently to reach a positive outcome by advocating for you and your family. Contact us today to learn more about our firm and the trust services we offer.
Call our office at 704-873-2295 or email us today.
Attorney Mike Lassiter grew up in Statesville, makes his living serving the people of Statesville and published a book capturing the changing landscape of small town life across North Carolina and Iredell County. His keen sense of history, dedication to the area and 30 years of legal experience make him an ideal attorney for your legal needs.
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