Living Trusts Attorney In New York
The domain of trusts is a large one, and within it dwells a large array of financial documents. One such document that you may come across is a living trust, and before you decide whether or not you need one, you should make sure you are informed about its role and the differences between it and other types of financial planning documents.
What Is A “Living Trust”?
A living trust, also called a “revocable trust,” is a document that can help you reduce the effect of probate on your beneficiaries or, even better, avoid probate completely. Via a living trust, the grantor, the individual creating the trust, transfers the possession of the assets included in the document, such as property, tangible goods, and intangible assets, to a beneficiary declared in the trust. Examples of assets you should consider placing into a living trust include real estate, stocks or mutual funds, and bank accounts.
What Are The Benefits Of Writing A Living Trust?
In New York, as well as in other states, the grantor can declare himself to be the beneficiary of his own living trust. The keyword is “living,” so the trust goes into effect before the grantor’s death, and thus all of the assets written into the trust are fully accessible during the lifetime of the grantor. In such a way, the grantor can continue using the assets in the trust as the lifetime beneficiary and, upon death, have them immediately transfer over to the surviving beneficiaries by designating them as remainder beneficiaries when drafting up the document. In the event that you decide to amend a living trust, you merely need to meet with a qualified attorney to write up the changes you desire to put in place, and the desired amendment will go into effect once signed into action.
How Does a Living Trust Differ from Other Estate Planning Documents?
When considering estate planning documents, the two that most commonly come to mind as potential alternatives to a revocable living trust are an irrevocable trust and a will, the two extremes when it comes to protecting your assets.
Irrevocable Trust: Whereas the irrevocable trust keeps your assets secure from creditors, it also makes the assets inaccessible to the original owner, as they are no longer his property. Furthermore, the beneficiaries and trustee cannot touch the designated assets until the grantor’s death. This is a document only used when individuals are certain they wish to part with large portions of their estate, as irrevocable trusts cannot be edited further upon signing. Depending on your situation, though, you may be more inclined to put your assets into an irrevocable living trust or split them between the two.
Will: Although the most common document, a will does little to protect your assets when compared to a living trust. With a will, your assets will have to go through probate, the costly process through which the court will distribute them via your executor. By avoiding this process with a living trust, you not only save your beneficiaries time, but you ensure they receive their fair share efficiently, preventing attempts to contest the distribution. Compared to a will, which does not require you to put in work relocating your assets prior to death, a living trust does require you to move your assets into the trust itself, but that overhead is much less of a burden than the worry that comes with the proceedings of a will. Similarly, a living trust has a much simpler amendment process. Furthermore, because a living trust, unlike a will, is private, the distribution of your assets will be kept secure, without public records of all of the transactions.
Contact Our Living Trusts Lawyers Today!
Only an experienced living trust attorney in New York City can help you understand the different types of living trusts and its benefits. If you are interested in creating a revocable or irrevocable living trust, contact The Law Office of Inna Fershteyn and Associates, P.C. today. We will help you draft a living trust that is right for you.
Call (718) 333-2394 now to discuss your estate goals with a reputable estate planning attorney.