Why a Family Trust is so Important During the Covid-19 Pandemic
For over six months, the COVID-19 pandemic has greatly impacted New York City. Although there have been far less deaths more recently than before, there are still a great amount of people that are affected by the coronavirus. Due to the uncertainty this pandemic has brought upon us, it is important to create an estate plan. One of the most important documents to execute during this pandemic is a Revocable Living Trust (also called a Grantor’s Trust).
A trust is a legal document that can help you reduce the burden of probate on your beneficiaries. It actually avoids probate altogether. With a trust, the Grantor, an individual who creates the trust, transfers the ownership of all of their assets, such as real estate, tangible goods, and intangible assets, to a trust. Upon the Grantor’s death, the beneficiary gets all the assets that belong to 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 trusts, but the two main ones are the revocable and irrevocable trusts. In an irrevocable trust, you are unable to modify the terms, or do anything without the permission of the beneficiary. In a revocable trust, you are able to alter or cancel certain provisions. In the revocable trust, income that is earned is distributed to the Grantor, and upon the death of the Grantor, the beneficiaries get everything outright. Having a properly drafted living trust allows you to avoid probate, control the division of your property, and prevent your personal information from reviewed by the court
It is better to have a Trust than a will during COVID-19 in New York. Since the start of the COVID-19, the probate courts have been closed. Due to the increased number of deaths that have occurred as a result of COVID-19, there have been many people trying to probate wills, and as a result the probate courts have been severely backed up. During the pandemic, it would be a better option to create a trust because they are not required to go through the probate courts.
If you or a loved one need help with estate planning for your family, contact the Law Office Of Inna Fershteyn. Attorney Inna Fershteyn is a great estate planning attorney with over 22 years of experience. Since the start of this pandemic, Inna has helped clients draft, and sign all types of trusts without ever putting anyone’s safety at risk. If you need help executing a revocable or irrevocable trust, call (718) 333-2394 to set up an estate planning consultation.