What are the pros and cons of choosing a corporate versus individual trustee for my trust? – North Carolina Short Answer In North Carolina, you may name either a corporate trustee (a bank or trust company) or an individual. Both must follow the same fiduciary duties: act in good faith, be loyal and impartial, prudently…
What options do I have for funding a property with a mortgage into my trust? – North Carolina Short Answer In North Carolina, you can transfer mortgaged real estate into a revocable or irrevocable trust by recording a deed from you to your trustee. The loan stays on the property, but your lender’s due-on-sale clause…
How do I confirm my step-parent has capacity to sign a new power of attorney after a stroke? – North Carolina Short Answer In North Carolina, your step-parent can sign new financial and health care powers of attorney if, at the moment of signing, they understand what the documents do and whom they are appointing.…
How can I revoke an existing power of attorney when my step-parent is hospitalized after a stroke? – North Carolina Short Answer In North Carolina, a competent principal may revoke any power of attorney at any time by a signed written revocation and by giving actual notice to the current agent and anyone relying on…
What steps do I need to appoint myself as financial and medical agent under a new power of attorney? – North Carolina Short Answer In North Carolina, the principal must sign a new financial power of attorney before a notary and a separate health care power of attorney before two qualified adult witnesses and a…
How can I set up an irrevocable trust to protect my assets? – North Carolina Short Answer In North Carolina, an irrevocable trust can protect assets from most beneficiaries’ creditors if it is properly drafted, funded, and administered with spendthrift and discretionary distribution terms. It will not protect assets from your own creditors if you…
What are the tax implications of transferring property into an irrevocable trust? – North Carolina Short Answer In North Carolina, funding an irrevocable trust is often a completed gift for federal transfer tax purposes, which can require filing a federal gift tax return and locks in a carryover income tax basis (no step-up at your…
What steps are involved in funding an irrevocable trust? – North Carolina Short Answer In North Carolina, funding an irrevocable trust means transferring ownership of assets to the trustee so the trust, not you personally, holds title. Practically, that involves obtaining a tax ID for the trust, opening trust accounts, retitling assets to the trustee,…
Can I modify or revoke an irrevocable trust after it’s created? – North Carolina Short Answer In North Carolina, you cannot freely revoke an irrevocable trust, but you can change or end it in specific ways. If the settlor and all beneficiaries agree, they may modify or terminate a noncharitable irrevocable trust without court approval.…
How do I choose the right trustee for my irrevocable trust? – North Carolina Short Answer In North Carolina, pick a trustee who can meet mandatory fiduciary duties: loyalty to beneficiaries, prudent administration and investing, and clear reporting. Decide between an individual (family or friend) and a corporate fiduciary based on the assets, complexity, and…
