What are the types of trusts?

Trusts are formal legal agreements that allow a person to protect their assets and manage them according to the terms of the trust. In North Carolina, trusts are governed by the North Carolina Trust Code, which outlines the different types of trusts available. The most common type of trust is a revocable trust, or a living trust, which allows you to manage your assets during your lifetime. A revocable trust gives you the flexibility to adjust the terms of the trust while you are alive and can be revoked or terminated at any time. Another common trust is an irrevocable trust, which is set up to protect assets and provide tax benefits. Unlike a revocable trust, an irrevocable trust cannot be amended or revoked once it is created. Trusts can also be created to benefit a specific beneficiary, such as a special needs trust, or a trust that holds money for a minor child until they come of age. Lastly, there are also charitable trusts, which are created to provide funds, benefits, or services to a designated charitable organization. Charitable trusts can be used to benefit a family, give back to a religious organization, or provide for a particular cause. No matter the type of trust you create, all trusts must meet the requirements of Trusts and Estates Law in North Carolina. This means they must comply with all the applicable state and federal laws as well as the terms and conditions of the trust.

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What are the types of trusts?

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