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As an estate planning attorney, one of the most common questions asked is whether a client “needs” a trust. A trust is a legal agreement allowing you to control how your assets will be managed, protected, and distributed both during your life and after death. There are many different types of trusts, each tailored to accomplish different goals and requirements. A common objective for clients is avoidance of Probate. A properly funded trust can be an effective, and often recommended, way for individuals and families to privately distribute most assets to their beneficiaries without the involvement of a probate court. A trust may also allow you to provide for your loved ones, protect your assets, control who receives those assets and when they are received.

What Can I Put in a Trust?

Once you’ve decided whether a Trust is appropriate, the next step is determining what to put in your trust:

1. Real Property and improvements. All real property can be conveyed to your trust by signing a Deed to the Trustee of your Trust. Failure to properly title your property in your Trust may subject the property to Probate.
2. Investments and Financial Accounts. Ownership of all stocks, bonds, mutual funds, and other securities, as well as individual bank accounts, including checking, savings, and money market accounts may be transferred to your trust, either during life or after death, by updating account titles or completing institution-specific forms. Please contact your financial advisor or institution to discuss the appropriate steps to ensure these are properly transferred.

• Life Insurance. You may designate the Trustee of your Trust as the beneficiary of most life insurance policies by contacting your life insurance broker to obtain a Change of Beneficiary form.

1. Personal Property. Personal property and vehicles are not typically transferred to a trust unless extremely valuable. To transfer these assets, an assignment or Bill of Sale should be prepared along with naming the Trustee of the Trust on the vehicle title. If the property is insured, you should notify the insurance company of the change in ownership of the property. However, there are additional ways to transfer your vehicle(s) outside of Probate.
   1. In North Carolina, titling a vehicle in both owners’ names is insufficient to avoid Probate. Instead, vehicle owners may title their automobiles as “Joint Tenants with Right of Survivorship” (or JTWROS) to transfer title to the surviving co-owner without the requirement of Probate.
   2. South Carolina allows owners to designate a “Transfer on Death” (TOD) beneficiary to their vehicle titles. Such transfer is not subject to Probate and may include vehicles, RVs, and watercraft.

Estate planning decisions are deeply personal, and the right approach depends on your unique situation. If you have questions about whether a trust is right for you or how to best protect your assets in North or South Carolina, Heath Myers is here to help. Contact him at 803.366.3388. To learn more about Morton & Gettys, visit mortongettys.com.