Astoria NY Lawyers Helping Clients Plan for the Future with the Creation of Trusts
With the creation of a trust, it is possible for New Yorkers to protect and manage their assets for their intended beneficiaries, meanwhile keeping those assets out of probate court and potentially shielding them from costly estate taxes. There are many different types of trusts available to individuals and their families in New York State, each with its own strengths and limitations, and not every one of them will be considered beneficial to your specific needs or estate planning goals.
Irrevocable trusts (also known as living trusts), for example, allow you to keep control over the trust and see to the distribution of its assets over your lifetime. In this way, you can personally observe how the trust helps you and your beneficiaries in real time. However, with an irrevocable trust, you are still viewed as the owner of the property within the trust, therefore it is not shielded entirely from estate tax or creditor collection efforts.
Conversely, the revocable trust names a trustee to oversee the management of the trust, and ownership of assets and property within the trust is given to the beneficiaries. Depending on how you craft the trust, these assets may be distributed over time or upon some triggering event, for example, the beneficiary’s marriage or perhaps your eventual death. As the assets are considered the property of the intended beneficiaries, you will not be subject to estate taxes for those assets, and they can be protected from creditors. However, you do not have the power to alter the terms of the trust after it is executed without the express consent of all beneficiaries.
Who Can Serve as Trustee?
The trustee owes a fiduciary duty to the trust and its beneficiaries. When making decisions regarding the management of the trust and the distribution of its assets, they must always act in the best interests of the beneficiaries and the estate. A trustee has a large responsibility and must respect their duty. If a trustee is judged to be inadequate or fraudulently misusing their position and authority, they may be removed.
Anyone who is legally eligible to create a trust in New York also has the right to serve as a trustee. When selecting a trustee for your trust, it is important that you choose someone who you trust and who you feel is up to the task. And, normally, it is wise to select a trustee who lives within the same state as you, for their ease and convenience.
A trustee could be your spouse, your parent, your child, your sibling, your closest friend, your business partner, or they could be someone from outside your family, such as a financial advisor or an estate planning attorney. The trust lawyers at Ortiz & Ortiz, LLP can aid you in selecting the most suitable trustee for your estate.
Is it Possible to Contest a Trust via Litigation or Other Legal Means?
Estate litigation pertains to trust contests, will contests, conflicts of interest, breaches of fiduciary duties, and more. If someone believes that anyone involved with a trust is acting in bad faith or should not be involved with estate matters–be it the trust’s creator, the trustee, the beneficiary, or other figures involved in the estate plan–it is possible to raise an objection and seek legal action.
If you believe that there is something wrong or invalid in the trust documents, or if you believe the trustee’s actions to be suspicious or negligent, please reach out to the trust attorneys of Ortiz & Ortiz, LLP in Jackson Heights, NY.
Our law firm has years of experience supplying legal services to beneficiaries, trustees, executors, grantors, and collection agencies in matters of estate litigation and contested trusts. To learn more about what services we could provide you in your legal situation, please contact our law offices for a consultation.
Do You Need a Trust Attorney?
To better ensure that your trust is effective and well-executed, it is important to hire the services of legal professionals experienced in matters of estate planning in New York.
Just as a trust is not a requirement for anyone in NYC, there is no legal requirement to involve a trust lawyer in the creation of your trusts. However, any small error could result in unforeseen consequences, potentially rendering the effectiveness of the trust extremely limited and weak.
There are many considerations that must go into the creation of a trust, including just what type of trust is best for you and your estate. There are numerous types of trusts, including but not limited to: living trusts, irrevocable life insurance trusts, charitable trusts, and spendthrift trusts. An experienced attorney can assist you in the creation of your trust and other elements of your estate plan, so that you feel well-informed about the decisions you are making, and more at ease that they’re being handled correctly in the eyes of the law.
Contact the Trust Lawyers of Ortiz & Ortiz to Speak About Your Estate Planning Goals
For legal guidance in the creation of your trust and any other estate planning needs, please reach out to the trust attorneys of Ortiz & Ortiz, LLP. Our law firm has decades of experience providing legal services to clients in and around the five boroughs of New York and we would be proud to provide you with the dedicated and compassionate legal representation that you and your beneficiaries deserve.
To schedule a consultation, please call our law offices at 916-796-1858.