When it comes to estate planning, a living trust may be a good option. However, it can be very complicated and requires the assistance of an experienced lawyer. A lawyer can help with a lot of the details involved, including taking inventory of assets, determining the correct type of trust form to use, and deciding who should act as trustee. They can also help make sure that all contingencies are considered and all of the potential risks are mitigated.
A Living Trust is a legal document that allows you to manage your property during your lifetime and transfer it to beneficiaries after death. It can avoid the expensive probate process and keep your estate private, whereas a will becomes public record upon death. It can also save on taxes.
However, not everyone should have a living trust. For example, if your family has significant debts or you want to leave behind a child with special needs, a living trust may not be the right solution. You should always consult with an estate planning attorney in New York to see what is best for your unique situation.
Typically, when you create a living trust, you will serve as the grantor and trustee. Then you will transfer your property into the trust. It can include everything from real estate to bank accounts. Then, you will name beneficiaries. This can be anyone you choose, but most people choose their children, spouse, or other family members. You can also select a successor trustee to manage the trust after your death or incapacity.
Once you have named beneficiaries, you will then set up the terms of the trust. This can be as simple or complex as you want, but it should clearly state your wishes for how the trust will be managed and distributed. Depending on your situation, you might include provisions that the trustee should only manage the trust if you are unable to do so for some reason. You might also choose to include a provision that the trustee can sell some or all of the assets in the trust.
Another advantage of a living trust is that it can save on estate taxes. This is because your assets will remain in the trust until your beneficiaries reach their desired age, at which point they can take possession of them. This can prevent your beneficiaries from being forced to split an inheritance with their spouses or creditors.
One final benefit of a living trust is that it can reduce the chances of your beneficiaries’ creditors getting sued after your death. Creditors must wait until the probate claim cutoff period passes before they can try to collect on claims against your estate. If the creditor is not satisfied with their claim after this time, they can move forward with a lawsuit against any assets that were transferred into your living trust and not through the probate process.