Working through your estate planning options can feel overwhelming. Whatever your plan ends up looking like, it will most likely include a trust, a will, or both. An estate planning attorney in Charlotte can help you weigh the choices and pick what fits your family.
Trusts vs. Wills in Charlotte
People often assume one is more valuable than the other, but plenty of families benefit from having both a will and a trust. Each one does a different job, and knowing what each is good for makes it easier to decide what your plan needs.
What is a Will?
A will describes a variety of legal matters that come into play when you pass away. When you die, your will spells out who receives your assets and property, names the individual(s) you want to administer your estate, and, if you have minor children, names the individual(s) you want to serve as guardian over your minor children.
You can also include language about any specific individuals you wish to disinherit, with the exception of your spouse in North Carolina, as well as your decisions regarding your funeral and burial or cremation.
Wills do have to go through probate before any assets or property can be passed down to beneficiaries. The information inside a will also becomes a matter of public record, which many families find invasive.
What is a Living Trust?
A trust is a type of account you set up that assigns a trustee and holds specific assets and property. The assets and the income they generate transfer to the beneficiaries per the language of the trust document, including when you pass away.
Revocable Living Trusts
Trusts typically become effective immediately after you open the account. A “revocable living trust” lets you transfer assets before you pass away, change your trust beneficiaries, add or remove debts and assets, and make other modifications along the way.
Pros & Cons of a Trust
Setting up a trust offers several advantages. A trust lets your family inherit your assets and debts without going through probate.
The assets and property held in a trust also stay private, unlike a will. Trusts allow for the distribution of assets and property before the grantor’s death and, in some cases, give you the chance to make changes while you are still alive.
Types of Trusts
You can also choose from many types of trusts, depending on the circumstances of your case. Your options might include the following:
- Revocable trust: These trusts can be amended, changed, modified, or terminated at any time.
- Irrevocable trusts: Irrevocable trusts cannot be altered or changed once set up.
- Charitable trusts: Charitable trusts are similar to revocable trusts and allow the charities to benefit while the grantor is still living.
- Special purpose trusts: Special-purpose trusts are set up to handle special circumstances within your family.
- Special needs trusts: Special needs trusts are typically set up to help support individuals with lifelong disabilities that require economic support without limiting their opportunities or eligibility for government assistance programs, such as Social Security disability benefits, Supplemental Security Income (SSI), and others.
Pros & Cons of a Will
In almost every situation, having a will serves your interests. It can feel uncomfortable to map out what happens to your estate after your death, but planning protects your family. If you die intestate (without a will), the probate court divides your assets, property, and debts according to state law.
With a will, you can name a trustworthy administrator to handle your assets and property the way you want them distributed. A will is also the only document that names a legal guardian for minor children if you pass away.
Trusts vs. Wills: Side-by-Side Comparison
Which document fits your situation comes down to your family, your assets, and what you want your estate plan to do. The table below puts a will and a revocable living trust head-to-head on the questions most North Carolina clients ask first.
| Feature | Will | Revocable Living Trust |
|---|---|---|
| Goes through probate? | Yes | No, for assets properly retitled into the trust |
| Becomes public record? | Yes, once filed with the clerk of superior court | No, the contents generally stay private |
| Takes effect when? | At death | Immediately upon signing and funding |
| Helps if you become incapacitated? | No | Yes, your successor trustee can step in |
| Names a guardian for minor children? | Yes | No, that requires a will |
| Can be changed later? | Yes, with a codicil or new will | Yes, while the grantor is alive and competent |
| Typical upfront cost in NC | Lower | Higher, due to additional drafting and funding work |
A table only tells part of the story. Most North Carolina estate plans use both documents together, so the next two sections cover when a trust does the main work and what each option typically costs.
When a Trust Makes More Sense Than a Will
For many families, a well-drafted will is enough. Other situations call for a trust to do the main work because a trust can keep your affairs private, help your family avoid probate, and stay in place if you become incapacitated. A trust may be the better main document when:
- You own real estate in more than one state. Probating a will in two states usually means two separate court proceedings.
- You have a blended family or want long-term control over how children or grandchildren receive an inheritance.
- You value privacy. In North Carolina, wills filed with the clerk of superior court become public record; the contents of a trust generally stay private.
- You want to plan for incapacity. A funded revocable living trust lets your successor trustee step in immediately if you cannot manage your affairs, without a court-supervised guardianship.
- Your estate is complex enough that probate would be slow or expensive.
Even when a trust does the main work, most North Carolinians still need a will alongside it. A pour-over will catches any assets that were not retitled into the trust, and a will is the only place you can name a guardian for minor children.
How Much Does a Will or Trust Cost in North Carolina?
Costs depend on the complexity of your estate, the documents involved, and the attorney drafting them. In rough terms:
- An attorney-drafted simple will in North Carolina typically starts in the few-hundred-dollar range and rises with complexity, such as multiple beneficiaries, business interests, blended-family provisions, or tax planning.
- A revocable living trust package usually costs more upfront than a will alone, because the document is longer and you also need to fund the trust by retitling accounts and deeds.
- A full plan that pairs a will with a trust, powers of attorney, and a healthcare directive costs more than a stand-alone will, but it tends to be less expensive than letting an estate move through probate without one.
Back-end costs matter too. Probate in North Carolina comes with court costs, possible executor commissions, attorney fees, and months of administration. A properly funded trust can reduce or avoid those costs altogether.
Benefits of Having Both a Trust & a Will
Many people wonder whether to write a will or set up a trust when planning their estate. In practice, plenty of families do both, so probate rules and intestacy laws do not decide what happens to their assets and their wishes are more likely to be carried out as intended. Using both also helps avoid issues with probate.
Pairing a trust and a will helps protect your privacy, speeds up the transfer of assets to your beneficiaries, and heads off some of the costs that come with handling an estate without a plan in place.
Meet With a Charlotte Estate Planning Attorney Today
Most people end up using both a trust and a will in their estate plan. If you are ready to learn more about setting up a trust or what should go in your will, contact our Charlotte Estate Planning lawyer Ryan Stump today.
Schedule your confidential consultation by filling out our quick contact form or calling our office at 704-766-8836.
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