How Much Does a Trust Cost in North Carolina?

When it comes to estate planning, a trust is one of the most valuable tools to consider. Trusts allow a person to manage exactly how their assets are distributed after they are gone. Moreover, they can help you and your loved ones reduce expenses by potentially bypassing the probate process and limiting certain tax obligations. That all sounds great, but it probably leads you to the question: How much does a trust cost in North Carolina?

The overall cost of creating a trust depends on your unique situation and how you go about setting the trust up, so it’s difficult to say exactly how much the process can cost you. That said, it’s helpful to understand a bit more about the costs associated with establishing a trust so you can better prepare when the time comes to start your own.

Cost Factors for Establishing a Trust in North Carolina

The cost of setting up a trust often hinges on the complexity of your situation because this has an impact on the overall administrative expenses and legal fees you must pay. If you plan to set up your trust by yourself, you can expect to pay far less upfront than if you were to work with a North Carolina estate planning attorney.

That said, many people find the investment of working with a trained professional pays off in the long run. Establishing a trust and navigating the legal processes that follow can be complicated, and having a knowledgeable lawyer on your side can ultimately save you time and money down the road.

Typically, the cost to set up and maintain a trust covers:

• Day-to-day administrative expenses.
• Dispute resolution, if necessary.
• Document drafting.
• Legal paperwork filing.
• Investment management.
• Legal advice.
• Tax preparation.
• Transfer of asset ownership.

Revocable Trusts in North Carolina

A revocable trust, also known as a living trust, is a private legal agreement that allows a person (the grantor) to establish a living trust; a person can consolidate and customize control over their assets while they are alive, so everything can be distributed efficiently and effectively once they pass. Some of the common reasons North Carolina residents open living trusts include:

• Avoiding the probate process.
• Maintaining control over their finances and assets.
• Minimizing tax obligations on their net worth.
• Having peace of mind about the future transfer of their assets.

Irrevocable Trusts in North Carolina

Irrevocable trusts are more challenging to amend or revoke once they are created — even by the grantor or a trustee. While you lose out on the flexibility that a living trust provides, you gain some significant benefits in terms of protecting your assets and minimizing your tax obligations.

In Mecklenburg County alone, 86,390 cases pertaining to estates were filed in the fiscal year 2023-2024. With a high volume of estate cases in Charlotte, it’s important to understand how to navigate the legal processes and protect your assets.

Benefits of Establishing a Trust in North Carolina

Thinking about death doesn’t have to be morbid. By being proactive, you can save yourself and your loved ones a lot of headaches down the road.

In 2022, the North Carolina Department of Health and Human Services recorded 112,906 deaths across the state. Of those deaths, 57,590 of them were adults aged 75 or older. As people continue to live longer and accumulate more wealth, it’s more important than ever to have a strategy in place to protect their assets and pass them on to future generations when the time comes.

The top three causes of death in North Carolina are accidents, cancer, and heart disease, according to the Centers for Disease Control and Prevention. Things can change in a matter of moments, and it’s wise to have a plan in place in case something happens to you. With a trust, you can protect your assets and expedite the process of distributing them to your chosen beneficiaries.

FAQs

Q: What Types of Property Can a Trust Own in North Carolina?

A: A trust can include almost any type of property, including annuities, automobiles, bank accounts, boats, brokerage accounts, corporations, life insurance policies, livestock, personal property, stocks and bonds, timeshares, and trademarks and copyrights. A few types of property that cannot be owned by a trust include certain business interests and retirement accounts.

Q: What Are the Disadvantages of a Trust in North Carolina?

A: One major downside of trusts in North Carolina is that they are taxable. This means beneficiaries must file a tax return for the trust once the grantor has passed away. That said, they still can help people avoid the probate process where the assets are taxed by the court in a similar way. An easy way to ensure the benefits outweigh the disadvantages for you is to meet with a North Carolina estate planning lawyer to assess your case.

Q: Can I Write My Own Trust in North Carolina?

A: In North Carolina, you are allowed to draft and create your own trust documents. The process involves completing all required paperwork to form the trust, including property, and choosing a trustee and beneficiaries. Once you create the official document, you must sign it in front of a notary public.

While it’s possible to write your own trust, it’s recommended that you consult with a North Carolina estate planning attorney to ensure the document meets all your needs and the right legal requirements.

Q: How Much Money Is Usually in a Trust?

A: Trusts can hold anywhere from hundreds to millions of dollars depending on the type of trust and the grantor’s financial situation. There’s no minimum amount of assets you need to create a trust, but it’s wise to wait until you have a good amount of assets since the process can be complicated.

Learn More About Estate Planning From a Trusted North Carolina Trust Lawyer Today

It’s never too early to begin estate planning. If you’re interested in learning more, reach out to a local Charlotte living trust lawyer like Orsbon & Fenninger, LLP. Call our office or come down to visit us in person to set up a consultation today.