By Louise M. Paglen, Attorney at Law, The McIntosh Law Firm, P.C.
As an elder law attorney practicing in the Lake Norman area, I often meet clients who are unsure whether they need a will, a trust, or both. While both are essential estate planning tools, they serve different purposes and offer distinct advantages depending on your goals, family dynamics, and financial situation.
What Is a Will?
A will is a legal document that outlines how your assets should be distributed after your death. It allows you to name beneficiaries, appoint guardians for minor children, and designate an executor to carry out your wishes.
In North Carolina, wills must be signed by the testator and witnessed by two competent individuals. After death, the will goes through probate, a court-supervised process that validates the will and oversees the distribution of assets. Probate can be time-consuming and public, but it ensures that debts are paid and assets are distributed according to the law.
What Is a Trust?
A trust, on the other hand, is a legal arrangement where one party (the trustee) holds and manages assets on behalf of another (the beneficiary). Trusts can be revocable (changeable during your lifetime) or irrevocable (generally unchangeable once established).
The most common type is a revocable living trust, which allows you to retain control of your assets while alive and seamlessly transfer them to beneficiaries upon death—without going through probate. Trusts can also provide privacy, reduce estate taxes, and offer protection for beneficiaries who may not be ready to manage an inheritance.
When a Will Might Be Enough
For individuals with modest estates, straightforward family situations, and no concerns about privacy or probate, a will may be sufficient. It’s also essential for naming guardians for minor children—something a trust cannot do.
When a Trust Makes Sense
Trusts are especially useful for:
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Avoiding probate delays and costs
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Managing out-of-state property
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Providing for minor or special needs beneficiaries
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Planning for incapacity
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Keeping financial matters private
In North Carolina, where probate can be lengthy and costly depending on the county, a trust can offer peace of mind and efficiency.
Can You Have Both?
Absolutely. Many people use a “pour-over will” in conjunction with a trust. This type of will ensures that any assets not titled in the trust at the time of death are transferred into it, providing a safety net.
Final Thoughts
Choosing between a will and a trust—or using both—depends on your unique circumstances. I recommend reviewing your estate plan regularly and consulting with a professional to ensure your documents reflect your current wishes and comply with North Carolina law.
