What Is a Revocable Trust?
A revocable trust, also called a living trust, is a legal tool that allows you, the grantor, to transfer ownership of assets into a trust while retaining full control. You can amend, update, or revoke the trust at any time, making it highly flexible.
Revocable trusts allow assets to bypass probate upon your death, which can save time, reduce costs, and keep your estate matters private.
Key Benefits of a Revocable Trust in North Carolina
- Avoid Probate: Assets in the trust pass directly to beneficiaries, avoiding time-consuming probate court proceedings.
- Flexibility: Modify the trust as your circumstances or wishes change.
- Incapacity Planning: A successor trustee can manage your assets if you become incapacitated, avoiding court intervention.
- Privacy: Trusts are not public documents, unlike wills, keeping your estate details confidential.
- Smooth Asset Management: Beneficiaries, especially minors or those needing assistance, receive professional management of assets.
How Revocable Trusts Work in North Carolina
North Carolina trusts are governed by the North Carolina Uniform Trust Code. Typically:
- The grantor serves as the initial trustee, maintaining control over the assets.
- Assets are formally transferred into the trust.
- A successor trustee manages or distributes assets upon incapacity or death.
This structure ensures a seamless transfer of property and management of your estate, avoiding delays associated with probate.
Revocable Trust vs. Will
| Feature | Revocable Trust | Will |
|---|---|---|
| Probate | Avoids probate | Requires probate |
| Privacy | Private | Public record |
| Amendable | Can be changed or revoked | Can be amended via codicil |
| Incapacity Planning | Provides management during incapacity | Does not address incapacity |
Many families in North Carolina use both a revocable trust and a will to cover all assets and protect their estate.
Common Uses for Revocable Trusts
- Protecting assets for minor children or dependents
- Ensuring smooth management for beneficiaries who are not financially experienced
- Avoiding probate for real estate, investments, and bank accounts
- Planning for incapacity due to illness or aging
Why Work With an Estate Planning Attorney
Drafting a revocable trust requires careful attention to ensure compliance with North Carolina law and proper transfer of assets. An experienced attorney can:
- Draft a trust document tailored to your goals
- Advise on which assets to include
- Coordinate with wills and other estate planning documents
- Protect your beneficiaries and clearly define your wishes
Final Thoughts
A revocable trust is a powerful tool to protect your assets, maintain privacy, and provide peace of mind for you and your family. It ensures your estate is managed according to your wishes, even if you become incapacitated, while avoiding the delays and costs of probate.
At Lohr Law Firm, we help North Carolina residents create personalized estate plans, including revocable trusts, to protect families and assets.
Contact Lohr Law Firm today at (919)348-9211 or evan@lohrnc.com to schedule a consultation and learn how a revocable trust can safeguard your estate and provide peace of mind.
Carolina Estate Law Firm 