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 another types of financial planning documents.
What Is A “Living Trust”?
A living trusty, 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. There are different types of living trusts, but the two main are the revocable and irrevocable trust. In an irrevocable trust, you are unable to modify the terms , or do anything without the Permission of the beneficiary or beneficiaries. In a revocable trust, you are able to alter it or cancel certain things. In the revocable trust, income that is earned is distributed to the grantor, and upon death the beneficiaries then get the divided property. Having a properly drafted living will allows you to avoid probate, control the division of your property, and prevent your financials from being a public matter.
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 grantors 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 of 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. There are major advantages to having a living trust, some of these advantages include the money and time that you save in the probate process. With your living trust once you pass away all your costs like the funeral and the distribution of affairs to heirs, will begin. This saves time and cost. Another major benefit of a living trust is a stronger level of protection if it is challenged by anyone in the court. One last advantage is the protection of privacy. Compared to a will which is a public document which can be obtained from county records, a living trust is private and no one has access to the detailed information you have disclosed.
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: Where’s the irrevocable trust keeps your assets secure from creditors, it also makes the assets inaccessible to the original owner, ads they are no longer his property. Furthermore, the beneficiaries and trustee cannot touch the designated assets until the grantors 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 not 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 trusty 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 for the transactions.
Do I Need A Living Trust
It’s important to have a living trust because it can help avoid probate and administration proceeding. If you have a home that you use for vacation, putting it in your living trust allows it to be safe from probate as well. It is also a good idea for those who want to leave something for more than one child to inherit. You can tell whether or not you would need a living trust by weighing the size of your assets. If you don’t own a lot of property or if you don’t have anyone to inherit your property, it may be best to just have a will.
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 an 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.