Trusts Lawyers in Asheville, NC Helping You Understand the Role of Trusts in Careful Estate Planning
Whether or not your estate plan should include one of the many types of trusts that are available in estate planning is a question that depends entirely on your individual circumstances and goals. At Crag Associates, our estate planning attorneys have deep knowledge and experience helping clients determine the types of trusts that might benefit them, and can prepare trusts to comply with all laws and regulations in order to benefit you and your beneficiaries.
Trusts can have benefits that can include protection from estate taxes, stable support for disabled loved ones, protection of assets during long-term care, and control over assets that beneficiaries might squander, among others. Living trusts, special needs trusts, charitable trusts, revocable trusts, and irrevocable trusts are all available to you as you conduct the business of estate planning. Which of them will benefit you most is a question our skilled trusts attorneys can answer.
Contact Craig Associates, PC at 828-258-2888to get started protecting your assets and your loved ones.
What Is A Revocable Living Trust, and Why Should I Consider Having One?
A living trust is simply a trust that is in effect while the grantor (the person who created the trust) is still living. While irrevocable trusts can provide more protection from estate taxes for high-wealth individuals, a revocable living trust is a great asset transfer vehicle for those even of modest means. A great benefit of a revocable living trust is that you maintain control of it and the assets in it while you are still living, and can modify or terminate the trust at any time. You can act as the beneficiary and the trustee while you are still living. Another benefit to a living trust is that it can keep your estate out of probate, should you pass away. Probate can be time-consuming and expensive, and it is a public process with public records. Avoiding probate can reduce costs and keep your financial affairs private, as well as speed up the process of distributing assets to beneficiaries.
What is a Special Needs Trust?
A special needs trust is a trust set up to provide for a beneficiary who receives government benefits such as Medicaid, Social Security disability payments, and other government benefits. If a person receiving such benefits inherits money or property directly, their increased net worth can disqualify them for the benefits on which they rely. Putting assets into a special needs trust and naming a trustee to administer the assets protects the beneficiary by preserving their government benefits, and also by naming a responsible party to ensure that the funds are used judiciously and for the beneficiary’s best interests.
Are There Trusts That Can Protect My Heirs From Excessive Estate Taxes in North Carolina?
In North Carolina, there is no estate or inheritance tax, and the federal inheritance tax only applies to estates over $12.06 million. If the estate of a deceased person generates more than$600 of income annually, it is taxable as a separate entity from the deceased person under ordinary income tax rules.
Even though there is no inheritance tax in North Carolina except the federal inheritance tax for the extremely wealthy, certain kinds of trusts can still be used to protect against other taxes like capital gains tax or income tax. Consult an experienced trusts attorney to see how trusts can help reduce the tax burdens on you and on your beneficiaries.
Why Should I Consult an Attorney to Talk about Trusts?
The number of different kinds of trusts and the advantages and disadvantages of each of them can be overwhelming to consider. An experienced trusts attorney can look at the overall picture of your estate plan and help you determine whether there is a trust arrangement that would benefit you, If so, the trusts lawyer will help you draft the document and will ensure that it meets all requirements of the pertinent laws and regulations.
Contact Craig Associates at 828-258-2888 to discuss your trust options.