A Living Trust Attorney helps clients with the many estate planning issues that arise. These include avoiding probate, saving taxes and caring for minors. An experienced New York City Living Trust Lawyer can guide a client through the process.
Whether a trust is necessary depends on a person’s family situation and the assets they own. People who are single and rent their property do not need a trust but those with children, significant assets or a taxable estate may benefit from it. A trust can also save money on taxes and protect the privacy of heirs.
Probate is a public process through which the executor of an estate pays debts and distributes property left by a deceased person. The process can be costly. A revocable living trust can bypass this process, allowing beneficiaries to receive their inheritances faster and more efficiently.
A trust is a legal arrangement where you outline your wishes in a set of documents and transfer your assets into it. You name a trustee to manage the trust while you are alive and name beneficiaries to receive the inheritance after your death. The trustee will manage the assets in the trust and make sure they are distributed to your beneficiaries according to your wishes.
Living trusts come in two varieties: revocable and irrevocable. A revocable living trust allows you to change your mind and cancel it at any time, but assets that are a part of the trust no longer belong to you.
An irrevocable living trust does not allow you to change it, but the assets that are a part of the trust do not go through probate. An experienced New York City Living Trust Lawyer will know the pros and cons of each type of living trust.
Once a trust is established, you must do some work to transfer all of your assets into it. This can be a tedious and time-consuming task, especially when you own property in multiple states. However, it is important to transfer all of your assets into the trust in order for it to avoid probate.
The trustee will need to have access to your accounts in order to distribute them to your beneficiaries, so it is important to keep the trustee informed of your current financial situation and any changes you might want to make. This is particularly important if you have a joint account with a spouse.
It is also a good idea to have a will that refers to the trust so any assets not transferred into the trust can be distributed according to your wishes. A New York City Living Trust Lawyer will be able to help you draft a “pour-over” will that ensures anything not transferred into the trust is covered by your will.
Although most accounts with financial institutions will belong in your trust, you should not include any that are used to pay monthly bills like utilities. Instead, you should set up a separate checking account in the name of your trust. This will avoid a lot of headaches for your loved ones after you pass away.