How to Set Up a Family Trust for Your Home in North Carolina

By Jeff Franco J.D./M.A./M.B.A.

Setting up a family trust for your North Carolina home can be a powerful estate planning tool if you want to control how your surviving spouse and family members use the home in the future. The great thing about a family trust is that you can establish any condition or contingency to which your family will be subject before they are able to use the home or receive an ownership interest in it.

Step 1

Choose the beneficiaries of the family trust. You need to determine the specific family members who will have an in interest in the home once the trust takes effect. There’s no restriction on the number of family members you can designate as beneficiaries, nor is there any requirement that you include all of your children.

Step 2

Appoint a trustee. The person who you designate as trustee of the family trust is responsible for overseeing and managing your home and for insuring that all terms of the trust are adhered to. Therefore, you should always choose a trustee who is trustworthy and responsible.

Protect your loved ones. Start My Estate Plan

Step 3

Create a legal trust document. In North Carolina, one option is to incorporate all terms of the trust, such as the names of its beneficiaries, their respective interests in the home and a devise of the home to the trustee, in your will so that the trust takes effect immediately upon your death. Alternatively, you can create the trust prior to your death by drafting a separate document that includes all terms of your family trust.

Step 4

Fund the trust with your home. To fund the family trust with the home prior to your death, you must prepare a new deed naming the trust as the legal owner. But if you create the trust through your will by devising the home to the trustee, it isn’t necessary to prepare a new deed.

Step 5

Record the new deed. You must record the deed at the Register of Deeds office in the North Carolina county where your home is located.

Protect your loved ones. Start My Estate Plan
Can a Living Trust Protect a Home From a Lawsuit?
 

References

Related articles

Home Ownership & Divorce in Illinois

Owning your own home is still the American dream, but a home can be tough to split between divorcing spouses. For most couples, the home is more valuable than the bank accounts. In Illinois, marital property -- often including the family home -- is split equitably between spouses, though not necessarily equally. This often means the house must be sold to split its value between the spouses.

How to Buy a House While Getting Divorced

A divorce divides a family into two separate households, which usually requires at least one spouse to find another residence. If you are considering buying a new home before your divorce is final, carefully evaluate all the potential complications that can arise from acquiring such a significant asset while the divorce case is pending. If you buy a new house before the divorce is final and without taking proper precautions, the court might deem it marital property and divide it accordingly.

How to Prepare a Living Trust at Home

A living trust allows you to place assets under the care of a trustee who then distributes the assets to the beneficiaries of your choosing, in accordance with the terms you've set forth in your trust document. A living trust is often used to protect assets from the expense and delays of the probate process. A revocable trust is taxed as the grantor's personal assets, while an irrevocable trust is taxed as an independent legal entity. You may establish a living trust by executing a trust document and placing assets into the trust. Although it is best to retain an attorney to draft the living trust, it is possible to draft it yourself with the aid of an online legal document provider.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help. Wills & Trusts

Related articles

The Pros & Cons of Making a Will

A will is a written legal document that describes how you would like to distribute your property after you die. ...

How to Add a Husband's Name to the Deed or Leave the House to Him in a Will

If your husband is not on the deed to your home, you might want to add him as a joint owner. Having both spouses on a ...

What Is the Average Cost to Prepare a Living Trust?

When considering an estate plan, many people contemplate whether a trust is necessary or a will alone is suitable. The ...

Exclusive Rights to a Home During a Divorce

Some spouses are under the misconception that when they file for divorce, the other must leave the marital home, but ...

Browse by category
Ready to Begin? GET STARTED