What is The Difference Between a Living Trust and a Will in North Carolina?

Wills and living trusts have different benefits

Estate planning utilizes wills and trusts to save you tax money and probate fees upon your death. North Carolina recognizes both as estate planning tools as long as they meet the requirements of state law.

Definitions

Wills are legally recognized written documents determining to whom your property will go to when you die. Living trust are contractual documents that transfer your property during life to the trust for investment and income during your lifetime and after you die.

Requirements of North Carolina

North Carolina allows people who are competent mentally and physically to create a will. North Carolina also recognizes holographic wills which are wills written and signed in your handwriting without witnesses. A living trust in North Carolina may be created as long as the creator intends to do so, is not forced to by fraud or duress, and may also be made orally.

Benefits of Each

Wills allow the creators to specifically name individuals or charities to receive property and may state the reasoning for giving the property to that person. Living trusts allow the creators to earn money from the investment of the trust property and avoid the probate costs wills incur.

References

• "Black's Law Dictionary"; Bryan A. Garner, ed.; 2006
• "Understand Wills and Trusts"; Roger W. Anderson; 2009
• North Carolina General Assembly- Legislation