Trusts

Trusts may be customized to suit the grantor’s wishes, which may include their determination of what’s best for their beneficiaries....

Once again, North Carolina holds steady at #15 out of twenty-five states with provisions for decanting. The collective includes two additional states that adopted legislation for decanting over the past year. The 2017 Trust Decanting State Rankings Chart shows South Dakota and Nevada remain top jurisdictions for decanting. ...

Without liability insurance, trustees remain personally accountable for trust administration mistakes. Certain insurance policies help to manage trustee liability. These errors and omissions insurance policies for trustees provide coverage in the event that claims, lawsuits, or damages occur as a result of the trustee’s actions or inaction....

TrustCounsel's principal attorney Gregory Herman-Giddens presents Gun Trusts in Elder and Special Needs Law at the North Carolina Bar Association Annual Symposium in Pinehurst this February....

Updates to one’s revocable trust may be made by an amendment or a complete restatement. An amendment updates a specific part of the trust, while a restatement updates the entire trust. ...

Trusts typically are structured to provide for the best interests of the beneficiaries. The settlor may have had the best intentions when establishing the trust, but a trust created by a great-grandparent more than seven decades ago for the benefit of their great-grandchild might include provisions that prove impractical or unviable when it comes time to administer the trust for the great-grandchild’s benefit. Is there a way to remedy an outdated irrevocable trust? Under certain circumstances, yes....

Revocable and irrevocable trusts follow unique termination procedures. Although their name implies they cannot be changed, irrevocable trusts may be modified in certain circumstances. The circumstances surrounding a trust termination, and the type of trust, help to determine how a trustee may handle termination....

Primary, contingent and remainder trust beneficiaries have different rights as beneficiaries. Who has the right to bring a claim against the trustee of a revocable living trust?...

Trust beneficiaries have legal rights detailed in the trust documents and governed by state and federal trust code. If problems have resulted from a negligent trustee, or the trustee fails to adequately address issues brought to his or her attention by the beneficiary, it might be time for the beneficiary to reach out to a trust attorney and, potentially, the courts for corrective action....

TrustCounsel's Chapel Hill gun trust attorney Greg Herman-Giddens leads a free seminar about ATF 41F on April 4th....

Trust decanting is a process that allows assets of a trust to be distributed to another trust with different terms; generally the newer trust offers terms that better satisfy the needs of the beneficiary. Some states impose burdensome administration requirements for trust decanting, while others offer easier means of use....

Even if one’s goals were accomplished when a trust was initially created years ago, those goals might not align with current tax legislation and, sometimes, could result in overly complicated trust administration....

Americans love their pets and often feel connected to their animals as part of a family unit. How can the well-being of a pet be ensured if a pet owner dies?...

Creating a trust generally involves the intention of preserving assets for loved ones. Benefiting from a trust’s preservation might not be possible if the trust is not maintained properly. ...

Many trusts provide for lifetime income, but no principal, to the first generation of beneficiaries. In these days of low interest rates, income payments have suffered. However, income distributions from trusts do not have to be permanently affected by low interest rates. ...

As a general rule, beneficiary designations supersede instructions for transferring assets that may appear in a Will. This is one of the reasons why regular reviews of one’s estate plan are critical. ...

A supplemental needs trust is funded with third party assets for the benefit of a disabled individual. (Special needs trusts are funded with the disabled person’s assets.) Both of these trusts help preserve a disabled person’s assets and their eligibility for certain public benefits programs. ...

Irrevocable trusts have historically been viewed as just that: Irrevocable. However, with advances in state law and drafting techniques, there are now a few ways to amend the terms of an irrevocable trust....

Pet trusts offer animal owners a way to preserve assets for their pets’ benefit once the owners themselves pass away. In addition to designating a care provider, these estate planning tools help cover the costs for pet healthcare, food, living expenses, and basic enjoyment of life. A new trend is developing that pet owners should consider when deciding how much money to leave for their non-human family members: Pet hospice....

Pet trusts offer legal instructions for the continuing care of pets—including dogs, cats, horses, and exotics—after the pet owner passes away. Animal owners may try to make their own arrangements for pet care, but without learning about how pet trusts are created and administered under North Carolina law, their wishes may not be carried out. Do-it-yourself pet trusts may not fully ensure an individual’s instructions for pet care are legally enforced. ...

A year ago the nation waited for the government’s announcement about the estate tax exemption for 2013. A large number of American taxpayers established and funded irrevocable trusts just in case the federal estate tax exemption dropped to $1 million. ...

North Carolina recently expanded its law regarding trust "power holders," persons named in a trust, other than trustee, who are given certain powers over the trust and/or trustee. ...

Las Vegas asset protection guru Steve Oshins has updated his Domestic Asset Protection Trust (DAPT) State Ranking Chart. ...

Wealthy folks looking to transfer assets to younger generations in tax-advantaged ways should act now, as the Obama administration is seeking to limit several favorite techniques of estate planning attorneys. ...

North Carolina residents who want to own certain weapons regulated by the National Firearms Act should consider the advantages of an NFA Gun Trust specifically designed for use in North Carolina. From NorthCarolinaGunTrustLawyer.com:...

A dozen states now offer what are called Domestic Asset Protection Trusts (DAPTs), which allow a trust grantor to shelter trust assets from creditors while retaining the right to distributions from the trust. ...

Successful estate planning generally involves passing on your assets to your heirs at a low tax cost. To help achieve that goal, there are a few things to keep in mind about retirement accounts....

When Trusts Meet Retirement Accounts, a recent article on WSJ.com, explains the benefits of using a trust to pass on IRAs and other retirement accounts to children. ...

A New Social Security Program Operations Manual System (“POMS”) Section Regarding Early Trust Termination Provisions for "Self-Settled" Special Needs and Pooled Trusts is set forth below. This will not affect SNTs established with the assets of a third party, such as a parent....

On June 15, 2010, the House of Representatives passed The Small Business Jobs Tax Relief Act of 2010 (the "Act") which, if passed by the Senate and signed by the President, will significantly limit the utility of Grantor Retained Annuity Trusts (GRATs)....

In a decision dated February 2, 2010, the North Carolina Court of Appeals upheld the Superior Court Judge’s 2009 decision in Brown Brothers Harriman Trust v. Anne P. Benson, et al....

Based on what appeared to be a giant "loophole" in the gift tax law applying to gifts made in 2010, taxpayers could arguably make gifts to a wholly-owned grantor trust free from gift tax. ...

Effective October 1, 2009, Trustees of North Carolina trusts can, subject to certain requirements, appoint the trust property to another trust for the same beneficiary. ...

This posting is courtesy of my colleague David Goldman in Jacksonville, Florida, who has created a special trust for owning weapons regulated by the National Firearms Act (NFA)....

Offshore trusts continue to be an effective asset protection tool, including in bankruptcy, tax litigation, and divorce situations, even when the facts are not favorable to the trust grantor. ...

I previously blogged about NC’s repeal of the Rule Against Perpetuities, which limited the amount of time a trust could stay in existence, and some questions that existed regarding the repeal’s validity....

Separate Retirement Plan Trust is the Best Choice I generally recommend that persons with IRA or qualified plan assets of at least $200,000 should consider a Standalone IRA/Retirement Plan Trust. ...

If you’re like many folks, you may be deeply concerned about how litigious our society has become and fear that your assets may one day be taken by creditors. ...

In addition to the repeal of the rule against perpetuities, which is effective January 1, 2008 (perpetual trusts will be allowed in North Carolina provided certain requirements are met), there are a few other changes to North Carolina trust law, which were effective October 1, 2007:...

Effective August 19, 2007, North Carolina repealed the Rule Against Perpetuities, which means that multi-generation dynasty trusts can be created in North Carolina. Previously trusts could not last longer than 90 years or a life in being plus 21 years. ...

Estate planners love acronyms, and one of the most common when referring to a particular type of trust is QTIP, which stands for Qualified Terminable Interest Property. ...

On June 25 the U.S. Supreme Court agreed to hear a case on whether the investment expenses of trusts are fully deductible or subject to a 2% floor. ...

Capital Trust Company of Delaware’s website is full of articles and other information on trusts and estate planning One short piece that I found worth sharing is the Beneficiary Bill of Rights. ...

The use of a "Trust Protector" in trusts for maximum flexibility and protection is becoming increasingly common. ...

Professor Joshua Tate of Southern Methodist University has published an interesting and informative article on Incentive Trusts, which are generally used by parents to try to shape the behavior of their children. The abstract is as follows: ...