What tax consequences should I expect when transferring appreciated mutual funds into a trust? – North Carolina Short Answer In North Carolina, transferring appreciated mutual funds into a revocable “grantor” trust usually is not a taxable event and does not trigger capital gains; you keep your original cost basis and keep reporting income on your…
How do I update my estate planning documents to ensure they meet my goals for my children while I’m alive? – North Carolina Short Answer In North Carolina, you update your plan by executing a properly signed will or codicil, amending or restating your revocable trust as its terms allow, and signing an updated durable…
Can I structure my trust to allow income withdrawals without triggering capital gains? – North Carolina Short Answer Yes. In North Carolina, you can structure a revocable, grantor trust to let you withdraw investment “income” (interest, dividends, and fund distributions) without by itself triggering capital gains. Capital gains tax is typically triggered when assets are…
What can I do if a trustee refuses to share trust statements or accounting? – North Carolina Short Answer In North Carolina, trustees must keep adequate records and give qualified beneficiaries reasonably complete information and an annual (and final) report about the trust’s assets, receipts, disbursements, and the trustee’s compensation. If a trustee refuses, a…
Can I challenge a trustee for mismanagement or failure to make required distributions? – North Carolina Short Answer Yes. In North Carolina, a beneficiary can ask the Clerk of Superior Court to order a trustee to account, make required distributions, post a bond, suspend, or remove the trustee. If you also seek money damages for…
How do I verify whether all scheduled payouts from my trust have been made? – North Carolina Short Answer In North Carolina, a trustee must keep accurate records, provide annual and final reports, and give beneficiaries reasonably complete and accurate information on request. To verify scheduled payouts, make a written demand for a copy of…
What rights do beneficiaries have when a trustee resigns or stops communicating? – North Carolina Short Answer In North Carolina, beneficiaries have the right to timely information and an accounting, even if a trustee resigns or becomes unresponsive. A trustee must follow formal resignation steps and continues to safeguard trust property until a successor takes…
Can our firm review and amend a will drafted by another attorney? – North Carolina Short Answer Yes. In North Carolina, any attorney may review and update your will, even if another lawyer drafted it. You can amend by signing a codicil or replace the document with a new will that expressly revokes prior wills.…
What happens if I can’t locate my original estate planning documents? – North Carolina Short Answer In North Carolina, if you can’t find your original will or other estate documents, the safest fix while you’re alive is to sign new documents that revoke and replace the old ones. After death, a missing original will can…
What steps are needed to confirm that my updated estate plan is legally valid? – North Carolina Short Answer In North Carolina, your updated estate plan is valid if each document is executed with the formalities North Carolina law requires and earlier documents are revoked or coordinated properly. For a will or codicil, that means…