Wills vs. Trusts: A Quick & Simple Reference Guide

When you plan your estate in North Carolina, you’ll encounter two main tools: a will and a trust. Each serves a different purpose. Knowing their features helps you decide which fits your family’s needs.

1. Detailed Answer: How Wills and Trusts Work Under North Carolina Law

Understanding Wills in North Carolina

A will is a written document that names who gets your property when you die. In North Carolina, Chapter 28A of the General Statutes governs wills. According to N.C. Gen. Stat. § 28A-2-1, you must be at least 18 and of sound mind to make a valid will. You sign it in front of two witnesses. A will lets you:

• Appoint a personal representative (executor) to handle your estate.
• Specify who receives your assets—money, real estate, personal property.
• Name a guardian for minor children.

After you die, your personal representative files the will in the county where you lived. The court supervises the distribution through probate. Probate costs include filing fees, personal representative fees, and attorney’s fees. Because probate is a public proceeding, anyone can access the court record.

Understanding Trusts in North Carolina

A trust is a legal arrangement where a trustee holds property for beneficiaries. North Carolina follows the Uniform Trust Code under Chapter 36C. You create a trust document and transfer assets into it. Common types include:

• Revocable Living Trust: You control and can change it any time. It becomes irrevocable when you die.
• Irrevocable Trust: You generally cannot change it once you fund it.

Trusts offer these benefits:

• Avoid probate. Assets in trust pass directly to beneficiaries without court oversight.
• Maintain privacy. Trust terms and assets don’t enter the public record.
• Plan for incapacity. A successor trustee can manage your affairs if you become unable.

Setting up and administering a trust involves drafting the trust document and legally transferring property into it. You pay drafting fees and may pay trustee fees.

2. Quick Reference: Key Differences Between Wills and Trusts

• Probate: Wills require probate; most trusts do not.
• Privacy: Wills become public record; trusts remain private.
• Incapacity Planning: Wills take effect only at death; trusts can address incapacity.
• Flexibility: Wills are easy to change; irrevocable trusts are not.
• Cost: Wills generally cost less to set up; trusts can cost more upfront but may save on probate.
• Control: Trusts allow you to set conditions on distributions (age, milestones); wills typically distribute outright.
• Oversight: Courts supervise probate for wills; trustee duties govern trusts privately under Chapter 36C.

Choosing between a will and a trust depends on your goals, the size and type of your assets, and how much privacy or control you want after death. A straightforward estate often works well with a will. If you own property in multiple states, have minor children, or want to avoid probate, a trust may serve you better.

Contact Pierce Law Group for Personalized Guidance

Estate planning rules can feel complex. At Pierce Law Group, our attorneys have decades of experience guiding families through North Carolina’s probate and trust laws. Let us help you choose the right path and draft documents that protect your legacy.

Ready to get started? Email us at intake@piercelaw.com or call (919) 341-7055 to schedule your consultation today.