Trusts in North Carolina

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Trusts in North Carolina
What They Do, How They Work, and Why Theyre
Useful
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Trusts
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What Are Trusts?
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A trust is an entity that can own property
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Like a corporation, a trust exists by itself
even though it has no physical presence
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Also like corporations, trusts can own property
for the benefit of others
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Important People
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The Three Main People (or Parties) in a Trust
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A person who creates the trust is called A
GRANTOR, TRUSTOR, OR A SETTLOR
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That person chooses someone who will manage the
trust property, known as the TRUSTEE, and one or
more beneficiaries who get to use, or benefit
from, the trust property
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The Trustee
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What Does the Trustee Do?
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As with a corporation, the property the trust
owns needs someone to manage it
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This is the primary duty of the trustee
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The trustee manages the property under the terms
the grantor established when making the trust
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Trust Property
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What Is the Trust Corpus?
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The trust corpus is the term used to describe the
property the trust owns
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When the grantor creates the trust, he or she
decides what kinds of property to transfer into
the trusts name
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Beneficiaries
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Children, Adults, Organizations
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The grantor can select any beneficiaries he or
she desires
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The beneficiaries can include the grantors
children, other family members, the grantor him
or herself, or nearly any other individual or
organization
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Different Types
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Living, Testamentary, Revocable, or Irrevocable
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Every trust is unique, and the numerous types
available can serve multiple different purposes
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Generally speaking, a trust is defined by when
the trust takes effect and how much control the
grantor has over changing its terms
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Living trusts take effect during the grantors
lifetime, testamentary trusts take effect
after the grantor dies
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Living trusts take effect during the grantors
lifetime, testamentary trusts take effect
after the grantor dies
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Grantors can change revocable trust
terms irrevocable trusts are unchangeable
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Grantors can change revocable trust
terms irrevocable trusts are unchangeable
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Uses
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Multiple Uses
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Some trusts are ideal for simple purposes, such
as minimizing or avoiding probate, or ensuring a
trustee manages a young childs inheritance until
the child is old enough
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More complicated trusts can ensure multiple
generations of families have their property
protected, or guard against excessive estate,
inheritance, or even income taxes
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Learn More About Trusts in North Carolina
Learn More About Trusts in North Carolina
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