When creating an estate plan, there are many different options to consider. While this can make the process overwhelming, having an estate plan is one of the most important things a person can do for themselves and their loved ones. In doing so, there are various tools that can be used to prepare your assets for the future. One of these includes a trust. It is important to have an understanding of these options before choosing to use them. Continue reading below to learn more about trusts in New York.
What is a Trust?
Many people use trusts to manage the assets in their estate plan. Simply put, this is a contract between an estate and trustee. A trustee is a person who manages the assets on behalf of the beneficiary, who is the individual inheriting the assets. This arrangement allows the trustee to take care of these assets until the beneficiary is able to do so for themselves. The different types of trusts that can be created in New York are as follows:
- Revocable Trust
- Irrevocable Trust
- Testamentary Trust
- Inter Vivos Trust
- Life Insurance Trusts
- Special Needs Trusts
- Charitable Remainder and Charitable Leads Trusts
What are the Benefits of a Trust?
Due to the fact that each tool within an estate plan is different from one another, they each provide their own benefits. The benefits of having a trust can include:
- Probate avoidance: Probate often takes place during estate administration. However, it is possible for this to be avoided through the use of one or more trusts in your estate plan.
- Tax reduction: Trusts can help you reduce estate and gift taxes on your estate.
- Control over disbursement: A trust allows better control over asset disbursement than a will would. A trust can reduce the chances of a beneficiary engaging in poor financial decisions and harming their inheritance.
Contact our Firm
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.