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Wills vs. Trusts in New York | What is the Difference?

Wills vs. Trusts in New York | What is the Difference?

Everyone is different, so everyone will have a different estate plan. What works for one person may not work for another. For this reason, it is important to find a plan that works best for you. Two documents you may want to incorporate include a will and trust. Read on to learn more about what these documents entail and the difference between them.

What is a Will?

A will is a document that declares what should happen to your possessions after you pass. Some people equate a will with a certain net worth. This is certainly not the case. Everyone should create a will, regardless of financial status. In fact, things left in a will may not always be of monetary value. A will is something that anyone interested in planning for their future should consider. In a will, you may want to include assets such as real estate, bank accounts, securities, and items of personality. Many other items or wishes can be included in a will as well. For example, if you want to designate a portion of money to charity, give a gift to a certain family member, or leave your favorite photograph to a friend, you can state that in your will. It is important to note that you should not put any funeral wishes in your will.

What is a Trust?

Simply put, a trust is a contract between a trustee and an estate. The parties involved are the trustor, the trustee, and the beneficiary.

Trustor: The person who creates the trust

Trustee: The third-party in charge of managing the trust

Beneficiary: The person who receives the benefits of the trust

Examples of Trusts

All trusts fall into two different categories:

Revocable: This type of trust can be altered and even revoked. It allows the trustor to make changes without the permission of the beneficiary.

Irrevocable: This type of trust cannot be altered without the explicit consent of the beneficiary

There are a lot of different trusts you may want to create. Below is a small sample of the trusts you can create:

  • Asset protection trusts
  • Supplemental needs trusts
  • Charitable remainder trusts
  • Special Needs Trusts
  • Charitable leads trusts
  • Generation-skipping trusts
  • Life insurance trusts
  • Testamentary trusts
  • Qualified personal residence trusts

If you have any questions about the estate planning process, contact our firm today to speak with an experienced and knowledgeable attorney.

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.

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