What Is The Difference Between Wills And Trusts?
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. A trust, on the other hand, is effective as soon as it is created. It lets you name beneficiaries and instructs how and when distributions are to be made. Trusts can also be used to prevent your assets from having to go through the probate process.
A trust, on the other hand, is effective as soon as it is created. It lets you name a beneficiary, or someone who jointly owns the assets in the trust. Full ownership is automatically transferred after you pass away. This can prevent your assets from going through the probate process, which could have tax ramifications.
Why Are Wills And Trusts Helpful?
Both wills and trusts allow you to control your property and plan for the future. A will is necessary to prevent North Carolina laws from distributing your estate in ways that may not align with your wishes. It can help you plan for unfortunate scenarios as well, such as an event in which someone else would need to care for your children.
Though trusts avoid probate court, typically not everything you own can be passed through a trust. Instead, they can help you prevent heavy taxes on important property. They also automatically transfer to a person you have chosen so your belongings are protected if something unexpected were to happen. An estate planning lawyer can help you further understand the benefits of setting up a trust.
Create A Plan That Is Right For You
Our attorneys at Lanier Fountain & Ceruzzi have decades of experience helping clients plan for the future. To schedule a consultation about the best use of wills and trusts for you, please contact us online or call 910-939-3585. We are located in Jacksonville and help clients with wills and trusts in Onslow County and our surrounding counties in Eastern North Carolina.