What Is a Revocable Living Trust, and How Does Funding One Help Avoid the Probate Process Compared to a Simple Will?

1. Detailed Answer

A revocable living trust operates as a flexible estate planning tool under North Carolina law. You create the trust document, naming yourself as grantor (also called settlor), trustee, and one or more beneficiaries. You retain full control of trust assets during your lifetime and may amend or revoke the trust at any time.

Once you die, a successor trustee—whom you appoint in the trust instrument—steps in to manage and distribute assets directly to beneficiaries. This process occurs outside of court supervision, so it avoids the formal probate administration required for assets passing by will.

By contrast, a simple will must undergo probate through the Clerk of Superior Court. Probate involves filing the will, notifying heirs and creditors, inventorying assets, paying debts and taxes, and seeking court approval for distributions. The relevant statute appears at N.C.G.S. § 28A-2-2.

Funding the trust means retitling assets in the trust’s name. For real estate, you record a deed that names the trust as owner. For bank and investment accounts, you change the account registration or add payable-on-death designations pointing to the trust. You can also transfer personal property by assignment or bill of sale.

When you fund the trust properly, those assets stay out of probate because legal title resides with the trustee. The successor trustee then distributes trust property without court involvement. This approach saves time, reduces fees, and preserves privacy.

Key North Carolina statutes:

• Uniform Trust Code: Chapter 36C
• Probate of Wills: § 28A-2-2
• Trustee Powers and Duties: § 36C-4-401

2. Key Benefits at a Glance

• Probate Avoidance: Trust assets pass outside court, cutting time and fees.
• Privacy: Trust distributions remain private; probate records stay public.
• Continuity of Management: A successor trustee handles assets on incapacity or death.
• Flexibility: You may change beneficiaries, trustees, or terms at any time.
• Cost Control: You control whom you name as trustee and successor trustee.

Conclusion & Call to Action

Funding a revocable living trust proves effective for avoiding probate delays and costs in North Carolina. If you want to learn how a trust fits into your estate plan, contact the experienced team at Pierce Law Group. Email us at intake@piercelaw.com or call (919) 341-7055 to schedule a consultation.