Wills and trusts are two common estate planning documents. A will allows the decedent to direct who should be the executor, and the will designates a guardian for minor children. A trust is a more flexible legal document, and allows the decedent to direct who receives the assets, such as a living trust. The benefits of a trust are significant, and they may help you build a secure financial future.
The main benefit of a living trust in New York is that your beneficiaries receive your assets immediately, rather than a probate process. A will has to be probated, and that can take a long time. A living trust can limit your family’s exposure to the probate process. If you’re unsure about which type of trust is best for your situation, consider consulting a financial advisor.
When creating a living trust, you can name yourself or someone else as trustee. It is important to name a successor trustee, as this person will be in charge of distributing the property upon your death or incapacity. The trustee will make sure that your property goes to the right people. You can either use a service to create your trust document or hire an attorney to write it for you. Either way, you need to sign the document in front of a notary.
Both wills and trusts work to transfer property after a person dies. When you die, a will or trust transfers your assets to your spouse or heirs. A trust can be a better choice for transferring your assets if you have out-of-state property. However, a trust can also be used when a person lives out of state. While a will can pass property to a surviving spouse or other beneficiaries, a trust may help the beneficiaries receive their inheritance faster.
A trust is a more flexible legal document than a will, and both have their benefits. A trust can provide for more control over the distribution of assets, avoid the probate process, and protect your assets from creditors, second marriages, and immature children. A trust may be an ideal solution for your estate planning needs. Your estate planning attorney will advise you on which type of trust would best suit your situation.
While a will may be easier to read and administer, a trust is much more flexible. It can be set up with multiple beneficiaries, making it possible to avoid a messy probate process. Trusts can also have assets that would otherwise not be covered by a will. A trust allows for the transfer of almost any type of asset, such as stocks, bonds, and real estate. You can even designate a trust to transfer your jewelry.
Another benefit of trusts is that you retain ownership of assets. Revocable trusts allow you to change the terms of your estate plan without going through the probate process. A trust can also avoid the expense of searching for long-lost relatives and estranged relatives. Furthermore, a trust is not contested as easily as a will, so a trust is a better option.
A living trust also avoids probate. The money you leave to your spouse or children can be transferred directly to the trust, allowing the person to manage it as they choose. A living trust can also be set up for a variety of purposes. Whether a living trust is right for you depends on your unique situation and your financial goals. The pros and cons of a living trust are explained below.
Another major advantage of a testamentary trust is the flexibility it allows you to put conditions on the distribution of your property. Intestacy is a state-mandated method of transferring property after a person dies. Your property will be distributed to those next to your last known kin. Minor children will be cared for by a guardian until the age of 18.
While a living trust doesn’t require the grantor’s consent, it can also protect assets for disabled family members. If you set up a special needs trust, you can leave money for a disabled family member without jeopardizing their eligibility for public benefits. A minor’s trust, in contrast, is a legal document for a child’s education. The income generated by a minor’s trust must be used to help the child get an education.
Revocable trusts offer a few additional benefits. While a living trust can be difficult to modify and revoke, a fully funded trust avoids probate and will not be challenged by heirs-at-law. It also prevents a spouse or other party from stepping in and claiming ownership of a deceased’s assets. Revocable trusts also have the benefit of avoiding probate.