Trusts Aren’t Just for the Wealthy in North Carolina
3 Reasons They’re a Smart Move for NC Families
When you hear the word “trust,” what comes to mind? For many North Carolina families, it conjures images of wealthy dynasties, sprawling estates, or celebrities with complex financial portfolios. But the reality is far different, and far more relevant. Trusts aren’t just for the rich. In fact, they’re one of the most practical, flexible, and protective tools available to everyday families in our state. Whether you’re a parent with young children, a homeowner, or someone caring for aging parents, a trust could be the key to protecting your legacy and simplifying life for your loved ones.
In this article, we’ll explore three compelling reasons why North Carolina families, regardless of wealth, should consider incorporating a trust into their estate plan.
Meet the Matthews Family
The Matthews family from Cary, NC, didn’t consider themselves wealthy. With two young kids, a modest 401(k), and a home with a mortgage, they felt “middle class” through and through. Their goal was simple: to make sure their children would be taken care of if something happened to them.
When they came to our office, they assumed they just needed a will. But as we talked through their goals: avoiding court, keeping things private, and making sure their kids wouldn't inherit everything at 18; they realized something surprising: a revocable living trust would serve them far better.
They’re not alone. Every week, North Carolina families just like the Matthews discover that trusts aren’t just for the wealthy, they’re a smart, strategic move for anyone who wants to protect their family and plan for the future.
1. Avoiding Probate in North Carolina
One of the biggest advantages of a trust is avoiding probate, the legal process of validating a will and distributing assets. In North Carolina, probate can be time-consuming, expensive, and public.
The Problem with Probate
When an estate goes through probate in NC:
The court controls the process of asset distribution.
Heirs may wait months (sometimes more than a year) to receive their inheritance.
Legal fees, court costs, and executor fees reduce the estate’s value.
The will becomes a matter of public record, anyone can look it up.
How a Trust Helps
A revocable living trust allows your assets to bypass probate entirely. The assets are owned by the trust, not you personally, and the successor trustee can distribute them quickly and privately after your death. This means:
No waiting on the court.
No unnecessary legal fees.
No public record of your family’s finances.
NC Example: Multiple Properties
Let’s say you own a vacation cabin in the NC mountains and your primary residence in Johnston County. If you rely on a will, your estate will go through probate in each county (and possibly each state if you own property outside NC). A trust allows all assets, no matter where they’re located, to be distributed seamlessly.
2. Protecting Young or Vulnerable Beneficiaries
If you have minor children, a child with special needs, or even adult children who aren’t great with money, a trust offers an extra layer of protection a will simply can’t provide.
The Will Problem
Under North Carolina law, children can inherit directly at age 18. That means if something happens to you, your 18-year-old could suddenly receive a large sum of money with no guidance or restrictions.
The Trust Solution
With a trust, you can:
Appoint a trustee to manage funds until your child is ready.
Specify how the funds can be used (e.g., for education, housing, healthcare).
Set age-based distributions: perhaps 25% at age 25, another 25% at 30, and the rest at 35.
Protect assets from divorce, creditors, or bad financial decisions.
Real-World Example
The Matthews wanted to make sure their children wouldn’t blow through their inheritance on a fancy car or impulsive spending spree. Their trust ensures the money will be used for college, housing, and other life needs, with oversight by a trusted family member until their kids reach maturity.
3. Planning for Incapacity Without Court Involvement
Estate planning isn’t just about what happens after death. It’s also about planning for what happens if you’re alive but unable to manage your affairs.
The NC Guardianship Process
If you become incapacitated, due to a stroke, accident, or dementia, your loved ones may need to petition the Clerk of Superior Court in your county for guardianship. This process:
Takes time and money.
Requires court hearings.
Can create conflict among family members.
Puts a judge—not your family—in control.
How a Trust Helps
With a revocable living trust, you name a successor trustee who can immediately step in and manage your affairs if you’re incapacitated, no court approval needed. This keeps your finances running smoothly and ensures your wishes are honored.
Helpful Tip for NC Residents
In North Carolina, durable powers of attorney and advance healthcare directives are helpful, but they’re not always sufficient. Financial institutions can sometimes question powers of attorney, especially older ones. A trust, backed by clear legal authority, often faces less resistance.
Bonus: Privacy and Protection
A trust offers privacy that a will can’t. When a will is filed for probate, it becomes public record. That means anyone, from nosy neighbors to scam artists, can see what your family owns and who inherited it.
With a trust:
Distributions happen privately.
Family drama can be minimized.
Predatory lawsuits and identity theft risks are reduced.
This privacy can be especially important for blended families, business owners, or those who simply value discretion.
What Happens If You Don’t Have a Trust in NC?
Without a trust:
Your estate will go through probate, which can delay and complicate distributions.
Minor children may need a court-appointed guardian to manage their inheritance.
Your loved ones may face court if you become incapacitated.
Your estate and family finances become part of the public record.
Even with a will, these problems can’t be fully avoided. A trust fills the gap by offering control and clarity.
Trust vs. Will: What’s the Difference?
How to Know If a Trust Is Right for You
Ask yourself:
Do you own a home or other real estate?
Do you have children or dependents?
Would your family benefit from avoiding probate?
Are you concerned about incapacity?
Do you want privacy?
Do you want to control how and when your heirs receive assets?
If you answered “yes” to any of these questions, a trust could be a smart part of your estate plan.
Common Life Stages When a Trust Makes Sense
Buying a Home – Real estate is one of the biggest assets to place in a trust.
Having Kids – Trusts help you care for children until they’re financially mature.
Blended Families – Trusts can ensure fairness across biological and stepchildren.
Approaching Retirement – It’s the perfect time to organize your legacy and reduce future burdens.
Caring for Aging Parents – A trust may allow you to manage their assets without a court guardianship.
Final Thoughts: Trusts Empower Families, Not Just the Wealthy
The Matthews family walked away with something far more powerful than a set of legal documents. They gained confidence. They knew their children would be protected, their wishes respected, and their legacy honored.
Trusts are no longer tools just for the wealthy. They’re tools for the wise. And in today’s complex world, a little planning can make all the difference.
Let’s Talk About What’s Right for You
At Mackintosh Law, we help families across North Carolina create thoughtful, personalized estate plans. Whether you’re curious about whether a trust fits your situation or ready to get started, we’re here to guide you, step by step.
📞 Call us today at (919) 336-4219
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📍 Serving clients in Garner, Cary, Clayton, and surrounding communities
