Trusts and Asset Protection in Greensboro, Durham, and all of the Middle District
While a Last Will and Testament is a vital component of any estate plan, it inherently comes with a major limitation: it guarantees your estate will go through the public, time-consuming, and often expensive court process known as Probate. For individuals, business owners, and families who desire complete privacy, immediate asset transfer, and long-term control over their wealth, a Trust is the superior legal vehicle.
At the Law Office of Stephen E. Robertson, PLLC, our Greensboro and Durham trust attorneys provide sophisticated, board-certified guidance in establishing customized trust structures. With over two decades of experience, we help you transition your assets seamlessly to the next generation while minimizing tax burdens and protecting your family from creditor claims.
Understanding the Revocable Living Trust
The most common, flexible, and powerful tool in modern estate planning is the Revocable Living Trust (RLT). Unlike a Will, which only takes effect upon your death, a Living Trust takes effect the moment you sign it and transfer your assets into it.
How It Works
A Trust involves three distinct roles, all of which are usually held by you during your lifetime:
- The Grantor (or Trustor): You, the creator of the trust who transfers assets into it.
- The Trustee: The person managing the assets. In a Revocable Living Trust, you serve as your own Trustee during your lifetime, maintaining 100% control over your money, real estate, and property.
- The Beneficiary: The person who benefits from the trust. During your life, you are the primary beneficiary. After your death, the individuals or charities you have named become the secondary beneficiaries.
The Power of “Revocability”
Because the trust is “revocable,” you can change the terms, add or remove beneficiaries, sell the assets within the trust, refinance your home, or dissolve the trust entirely at any point during your life. You sacrifice no control. Upon your death, the trust automatically becomes “Irrevocable,” and your hand-picked Successor Trustee immediately steps in to manage or distribute the assets according to your exact instructions.
The Strategic Benefits of Trusts
Why choose a Trust over a Simple Will? Establishing a trust under North Carolina General Statutes Chapter 36C (The Uniform Trust Code) provides a multitude of strategic advantages that a Will simply cannot match.
1. Total Privacy
A Will becomes a matter of public record the moment it is filed with the Greensboro or Durham Clerk of Court. Anyone—including nosy neighbors, salespeople, or estranged relatives—can see what you owned, who you owed, and who inherited your money. A Trust is a private contract. It is never filed with the court, ensuring your family’s financial affairs remain strictly confidential.
2. Control From Beyond the Grave
A Will generally provides lump-sum distributions. If you leave $500,000 to an 18-year-old via a Will, they receive a check on their 18th birthday. A Trust allows you to control how and when beneficiaries receive funds. You can stipulate that a child receives 10% at age 25, 25% at age 30, and the remainder at age 35. You can also tie distributions to specific milestones, such as graduating from college, starting a business, or purchasing a first home.
3. Incapacity Planning and avoiding Guardianship
If you suffer a stroke or develop severe dementia, a Will does nothing to help you while you are still alive. With a Revocable Living Trust, if you become incapacitated, your Successor Trustee seamlessly steps in to pay your bills, manage your real estate, and handle your investments without the family needing to petition the court for a highly restrictive, expensive, and public Adult Guardianship.
Avoiding Probate with Trusts
The single most popular reason our clients in North Carolina establish Revocable Living Trusts is to Avoid Probate.
The Burden of Probate
Probate is the legal process of validating a Will, paying creditors, and distributing assets. In North Carolina, this process is notoriously tedious. It requires filing detailed inventories with the Clerk of Court, paying administrative court fees (which can reach thousands of dollars depending on the estate’s size), and typically takes anywhere from 9 months to 2 years to complete. During this time, your beneficiaries’ access to their inheritance is severely restricted.
The Trust Solution: “Funding”
When you create a Revocable Living Trust, you must “fund” it. This means legally changing the ownership of your home, bank accounts, and investment portfolios from your individual name (e.g., “John Doe”) to the name of your trust (e.g., “John Doe, Trustee of the John Doe Living Trust”).
Because you do not own these assets in your individual name when you die, there is legally no estate for the probate court to administer. Your Successor Trustee can immediately access bank accounts to pay for funeral expenses and can distribute inheritances to your children within weeks, completely bypassing the courthouse bureaucracy.
Frequently Asked Questions About Trusts
Yes. We always draft a “Pour-Over Will” alongside your Trust. This acts as a critical safety net. If you acquire a new asset (like a car or a new bank account) and forget to re-title it into the Trust before you pass, the Pour-Over Will catches that asset and “pours” it into your Trust to be distributed according to your master plan.
No. Because you retain total control and can revoke the trust at any time, the law considers the assets to be yours. Therefore, a Revocable trust does not protect against lawsuits, bankruptcy, or Medicaid estate recovery. If asset protection or Medicaid planning is your primary goal, an Irrevocable Trust is required.
Not at all. If you own a home and have a life insurance policy or retirement account, the cost of setting up a trust is almost always significantly less than the court fees, executor fees, and attorney fees your family will pay to take your estate through the probate process. It is an investment in your family’s future ease.
Absolutely. In fact, for business owners, placing your LLC membership interests or corporate shares into a Trust is critical. It ensures that your business can continue operating, paying vendors, and making payroll without freezing assets while waiting for probate clearance.
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Secure Your Wealth and Protect Your Privacy
Don’t leave your family to navigate a complicated court system while they are grieving. By establishing a Trust, you give them the ultimate gift: a private, seamless, and immediate transition of your legacy.
Contact the Law Office of Stephen E. Robertson, PLLC today to schedule a comprehensive trust planning consultation.