Guiding Clients through the Estate and Trust Administration Process

When you have taken the time to put together a comprehensive estate plan, you deserve to have the peace of mind that comes from knowing that your wishes regarding the distribution of your estate and related matters will be implemented effectively when the time comes.

At the law firm of Lynch & Eatman, L.L.P., our Raleigh attorneys have extensive experience with North Carolina’s probate process. Our estate planning clients can rely on us to assist their executors and trustees with the administration of their estates.

Overview Of Trust Administration In North Carolina

Trust administration is the process of managing and distributing a trust’s assets according to the trust agreement. In North Carolina, trustees or court-appointed administrators must follow specific legal and fiduciary duties to ensure the trust operates smoothly for its beneficiaries.

The trustee is responsible for managing the trust’s assets, including investment decisions, record-keeping and compliance with the trust agreement. They must act in the best interest of the beneficiaries and adhere to strict fiduciary standards.

Administration begins with the acceptance of the trustee role, followed by inventorying and appraising the trust’s assets. The next steps include notifying beneficiaries, managing and distributing assets and filing necessary tax returns.

Overview Of The North Carolina Probate Process

Probate is a legal process that governs the distribution of the deceased person’s assets. In North Carolina, it involves proving the will’s validity, inventorying the decedent’s assets, paying debts and taxes and distributing what remains to heirs.

Only assets solely in the deceased’s name require probate – other assets can be transferred without it.

Here are some examples of property that may require probate:

• Real estate titled solely in the deceased’s name
• Individual bank accounts without a named payable-on-death (POD) beneficiary
• Personal property, including items like cars, jewelry, art and furniture that are solely owned
• Undesignated stocks, bonds and securities held solely in the deceased’s name

In contrast, these assets may not need to pass through probate:

• Real estate or bank accounts held with rights of survivorship
• Life insurance policies, retirement accounts and other assets with named beneficiaries
• Assets held in a trust, which are managed and distributed according to the trust terms
• Securities or accounts with designated beneficiaries that transfer ownership upon death

The probate process aims to ensure the deceased’s wishes are followed and their assets handled correctly.

The Critical Importance Of Having A Will

Despite the many estate planning tools of today, a will remains crucial for most Americans. It helps to ensure assets are distributed according to your wishes and your loved ones are taken care of after your passing.

A will also allows you to specify how your assets should be distributed, name an executor to manage your estate and appoint guardians for minor children. Without a will, your estate will be distributed according to North Carolina’s intestacy laws, which may not align with your personal desires.

Helping Your Family Implement Your Wishes and Settle Your Estate

Most people choose to put their estates in the hands of family members whom they trust to implement their wishes impartially. In most cases, however, these family members are not attorneys and are not familiar with the probate and trust administration process.

The assistance of a lawyer who was involved in the process of crafting your estate plan can be invaluable when your family is confronted with the task of settling your affairs. Our firm will guide you through the entire process.

Maria M. Lynch has been board-certified by the North Carolina State Board of Legal Specialization as an estate planning and probate law specialist. She and the other lawyers at our firm have the experience to help your family settle your estate properly.

To learn more about our firm’s estate planning and probate services or to discuss any questions or concerns you may have about probate and trust administration in North Carolina, please contact us at 919-944-4655 or by email to schedule a meeting with our attorneys.