Wills vs. Trusts: What’s Right for You?
Planning for the future is not always easy, but creating a clear estate plan is one of the most important steps you can take to protect your loved ones. In North Carolina, two of the most common estate planning tools are wills and trusts. While both help distribute your assets after your death, they serve different purposes and offer different advantages.
Understanding the differences can help you determine which option best suits your situation.
Wills
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A will, formally known as a Last Will and Testament, is a legal document that outlines:
Who inherits your property
Who will serve as guardian for your minor children
Who will manage your estate as executor
In North Carolina, a will must go through probate. Probate is the court-supervised process of administering a person’s estate and is handled by the Clerk of Superior in the county where the individual resided.
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Generally less expensive to prepare
Allows you to name guardians for minor children
Clearly directs how assets should be distributed
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Subject to probate
Probate proceedings are part of the public record
The process can take several months or longer
For individuals with straightforward estates or limited assets, a will may provide sufficient planning.
Trusts
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A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of named beneficiaries. The most commonly used trust in estate planning is a revocable living trust. This type of trust can be changed or revoked during your lifetime.
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Avoids probate for assets properly transferred into the trust
Maintains privacy since it does not become part of the public record
Allows for continued management of assets for minor children or other beneficiaries
Can reduce delays in distributing property
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Higher upfront cost to create
Requires transferring assets into the trust
Does not eliminate the need for a will
Trusts are often beneficial for individuals who own real estate in multiple states, have larger or more complex estates, or want more control over how and when beneficiaries receive assets.
Considerations Under North Carolina Law
North Carolina probate is often more streamlined than in some states, but it can still involve cort oversight, required filings, and administrative costs. Estates that include minor heirs, business interests, or out-of-state property may require additional planning.
North Carolina does not impose a state estate tax. However, federal estate tax rules may apply to larger estates.
Do You Need Both?
In many cases, a comprehensive estate plan includes both a will and a trust. Even when a trust is created, a pour-over will is typically used to ensure that any assets not titled in the trust are transferred appropriately. Other essential documents often include a durable power of attorney, healthcare power of attorney, and an advance directive.
Estate planning should be tailored to your specific goals, family structure, and assets.
Moving Forward with Confidence
Choosing between a will and a trust is not simply a legal decision. It is a decision about how you want your affairs handled and how you want your family protected. The right choice depends on your assets, your family structure, and your long-term goals.
A well-drafted estate plan can minimize court involvement, reduce delays, and provide clear direction during a difficult time. Whether your needs are straightforward or more complex, thoughtful planning now can prevent confusion and conflict later.
If you are considering a will, a trust, or a combination of both, consulting with a North Carolina estate planning attorney (like Sarah Price!) can help ensure your plan reflects your intentions and complies with state law. Taking the time to plan today provides lasting security for the people who matter most.