When a person wants to create an estate plan in New York, there are many different tools that can be used. The ones they choose can vary depending on their personal situation and their wishes. One way a person may set up the distribution of their assets for the future is through a trust. This is an agreement between them and a third-party trustee. The trustee manages these assets on behalf of the individual’s beneficiaries. Continue reading below to learn more about trusts and contact an experienced New York estate planning attorney for assistance during this time.
What are the Pros of Setting up a Trust?
No one is obligated to create a trust in their life. However, there can be certain benefits to it depending on the individual’s estate plan. With the creation of trust, it is possible to do the following:
- Plan for how your property and wealth will be distributed. This may be to individuals, organizations, or both. Transferring assets through a trust allows people to have more control over the process. The amount can either be paid out all at once or the payments can be staggered.
- Allow special needs beneficiaries to receive their inheritance from the estate without being barred from government assistance.
- Help manage assets while the individual is still living.
What are the Cons of Setting up a Trust?
While there are benefits to a trust, there can also be disadvantages. Trusts generally have higher preparation costs than other tools for estate planning. This is because the trustor is required to retitle their assets in the name of the trust, otherwise they may not pass through. When this happens, the assets will have to go through probate instead. Retitling assets takes time and money. In addition to this, a trust also does not offer special estate tax benefits or asset protection. If a creditor needs to gather a person’s assets, they can take the ones within a trust.
Using an Estate Planning Attorney
There are many ways an estate plan can be set up, including with a trust. However, it is not the only way. The tools a person may need to do so can vary depending on their personal wishes as well as their estate. That is why it can be helpful to retain the services of a New York estate planning attorney for assistance during this time.
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.