Durham Trusts Lawyers

40+ Years of Trust Administration Experience in Durham

A trust is one way to help your loved ones avoid probate court following your death. Essentially, a trust arranges for one person, the trustee, to hold the legal title to the assets for another person, the beneficiary. You can serve as the trustee for your own living trust during your lifetime and maintain total control over the property that is held in the trust. 

Our Durham trusts lawyers at Walker Lambe, PLLC can help you evaluate whether a trust is the right option for you and your family. We take into account your assets, family situation, and other factors in order to provide a legal solution that is customized to your needs. With more than three decades of experience, our firm can anticipate any potential pitfalls and work to overcome the legal issues you face.

Benefits of a Living Trust: Why Consider a Living Trust in Durham?

Creating a living trust may take some effort in the beginning, but it is worth it in the long run.

In addition, you can create clauses that would protect your estate from depletion due to creditors or other parties. If you have a loved one with special needs, you can create a plan for their care that keeps your assets safe. Ultimately, a trust is an excellent way to protect your estate from losses while customizing the distribution of your assets to your wishes.

Types of Trusts Available in Durham

When creating a trust in Durham, it’s important to understand the different options available to you. Each type of trust offers unique benefits depending on your goals and circumstances.

Revocable Living Trusts:

• Offers flexibility during your lifetime.
• You can change or dissolve the trust as needed.
• Allows you to maintain full control over your assets.
• A popular option for individuals looking for flexibility in estate planning.

Irrevocable Trusts:

• Once established, it cannot be modified or terminated without the consent of the beneficiaries.
• Commonly used for tax-saving strategies or to protect assets from creditors.
• Offers potential protection against lawsuits and creditors' claims.

Testamentary Trusts:

• Created through a will and only becomes effective after death.
• Ensures that your estate is managed and distributed according to your wishes.
• Typically used for individuals who want to provide care for loved ones or ensure specific asset distribution after they pass away.

Special Needs Trusts:

• Provides financial support for a loved one with disabilities.
• Ensures they can receive care without jeopardizing their eligibility for government benefits like Medicaid or Social Security.
• Can be a vital tool for families with special needs dependents.

Charitable Trusts:

• Designed to benefit a charitable organization of your choice.
• Can offer tax advantages to the person creating the trust.
• Helps you leave a legacy by supporting causes that matter to you.

How a Trust Helps with Estate Planning

Avoiding Probate:

• Trusts bypass the time-consuming probate process, allowing assets to transfer directly to beneficiaries.
• This saves both time and money for your heirs.

Asset Protection:

• A trust can shield your assets from creditors and lawsuits.
• It can help ensure that your assets are protected and preserved for your beneficiaries.

Minimizing Estate Taxes:

• Certain types of trusts can help minimize estate taxes, maximizing the wealth passed on to beneficiaries.
• Effective estate tax planning can ensure that your heirs retain more of your estate.

Trust Administration Process: What to Expect

Managing and administering a trust involves several key responsibilities:

Managing the Trust:

• The trustee is responsible for overseeing assets and ensuring they are properly managed.
• The trustee distributes assets to beneficiaries as per the instructions in the trust document.

Fiduciary Duty of the Trustee:

• Trustees have a legal obligation to act in the best interests of the beneficiaries.
• They must manage the assets prudently and avoid conflicts of interest.

Tax Implications:

• Trustees are responsible for ensuring the trust complies with tax laws.
• They must file the necessary tax documents and report income or distributions from the trust.

Common Mistakes in Trust Creation and Administration

Frequently Asked Questions (FAQs) About Trusts

• What is the difference between a living trust and a will?
  A living trust is a legal arrangement where you transfer assets to a trustee for the benefit of your beneficiaries. It allows assets to avoid probate and provides more flexibility.
  A will, on the other hand, only takes effect after death and must go through probate. It’s a public process, and your estate may take longer to distribute.
• Can I be the trustee of my own living trust?
  Yes, you can serve as the trustee of your living trust during your lifetime. This allows you to maintain full control of the assets in the trust while you're alive. Upon your death or incapacity, a successor trustee will take over according to your trust's instructions.
• What happens if I forget to fund my trust?
  If you fail to fund your trust, it won’t be effective. Assets must be transferred into the trust to avoid probate and achieve the intended goals. Commonly forgotten assets include real estate, bank accounts, and life insurance policies.
• How can a special needs trust benefit my loved one?
  A special needs trust helps ensure that a loved one with disabilities receives financial support without losing eligibility for government benefits such as Medicaid or Social Security. It is designed to supplement their care without interfering with the public assistance they rely on.
• What are the tax benefits of a charitable trust?
  A charitable trust can provide tax deductions for the donor and reduce the taxable estate. It allows you to donate assets to a charitable organization of your choice, potentially minimizing estate and income taxes while supporting causes important to you.
• Do I need an attorney to create a trust?
  While it is possible to create a trust without legal assistance, working with a trust attorney is highly recommended. An attorney can ensure that the trust is legally sound, properly funded, and customized to your goals. They can also help avoid common mistakes that might invalidate the trust or cause complications.
• Can I change my trust after it’s created?
  If you have a revocable living trust, you can make changes or dissolve it at any time during your lifetime. However, once an irrevocable trust is established, it cannot be changed without the consent of the beneficiaries.