Rules and Regulations of North Carolina Wills and Trusts
The state of North Carolina allows different types of estate planning documents. Some documents are used during the person’s lifetime, while others only come into effect at death.
The state of North Carolina defines a will, also known as a last will and testament, as a document that becomes effective at the death of the signer and gives instruction about who receives property or assets from the deceased and also nominates the executor of the estate and any guardians or trustees for minor or incapacitated children.
Types of Wills
The state of North Carolina recognizes several different types of wills, but the most common is a will that is signed by the person and also witnessed by two other individuals, who also sign the will.
The state of North Carolina defines a trust as property that is managed by a trustee during the lifetime of the signer and helps to distribute the property at the signer’s death. Trusts are used to avoid estate taxes since the property distributed is not considered an inheritance.
Common Type of Trust
The state of North Carolina recognizes several types of trusts, with the most common being a living trust. A living trust is set up by the signer who nominates a trustee to oversee and manage the assets in the trust during the lifetime of the signer and after the signer has died.
The trust is written so that assets and property are distributed to beneficiaries at the signer’s death or the assets are kept in the trust managed by the trustee for a specified period of time.
Estate Planning Tools
A will and a trust are considered estate planning tools. The state of North Carolina provides several options for estate planning through trusts, insurance with a named beneficiary and accounts with a paid-on-death clause.
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