What Is The Difference Between Wills And Trusts?

Last updated on March 20, 2024

Wills and trusts are two types of estate planning documents that can help you distribute assets to the people that you wish to have them. However, they work very differently.

A will can dictate how your estate is to be distributed, and only takes effect when one passes away. It lets you name beneficiaries and instructs how and when distributions are to be made. A trust, on the other hand, is effective as soon as it is created. Trusts can also be used to prevent your assets from having to go through the probate process.

Common Types of Trusts in North Carolina

• Revocable Living Trust: This allows you to transfer assets into a trust while maintaining control during your lifetime. Upon your passing, the assets are distributed according to your wishes, avoiding probate.
• Irrevocable Trust: Assets placed in an irrevocable trust are generally out of your legal control and cannot be easily accessed. This can offer some tax benefits and creditor protection. There are many variations of irrevocable trusts, each serving a specific purpose. Some common types include:
• Charitable Trust: Benefits a charitable organization.
• Special Needs Trust: Protects assets for a disabled beneficiary to ensure their continued eligibility for government benefits.

Why Are Wills And Trusts Helpful?

Create A Plan That Is Right For You

We’ll work closely with you to create a personalized will or trust that reflects your unique circumstances and protects your loved ones. Whether you have a young family, complex assets, or digital holdings, we’ll ensure your plan addresses your specific needs. We can also prepare an estate planning package that is individually tailored while remaining cost-effective.

To schedule a consultation about the best use of wills and trusts for you, please contact us online or Call Today. We are located in Jacksonville and help clients with wills and trusts in Onslow, Jones, Carteret, Duplin, Craven, Pender. and our surrounding counties in Eastern North Carolina.