What is a trust?

A trust is a legal document that outlines the plans for how a person’s assets are to be managed and distributed after their death. A trust is created by someone known as the grantor, who transfers their assets into the trust for the benefit of another person, known as the beneficiary. The grantor can be the beneficiary, or the trust can be created in order to benefit someone else. In North Carolina, trusts are created to provide for the beneficiaries’ financial needs. The grantor can decide how the assets will be managed and how they will be distributed. For example, they can choose a trustee to oversee and manage the trust and follow the grantor’s instructions. The trustee is responsible for making sure the trust is carried out according to the grantor’s wishes and ensuring the beneficiary’s financial needs are met. Trusts are often used to avoid probate, meaning the transfer of the grantor’s assets to the beneficiary is done quickly and directly. This makes the process of transferring an estate much simpler and faster, without going through the lengthy and expensive process of probate court. Trusts are also used to protect assets from creditors and to reduce taxes. In North Carolina, a trust is a powerful legal tool and can be used to protect and manage assets. It is wise to create one with the help of a qualified estate planning attorney so that all of the grantor’s wishes are carried out properly.

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