Trusts Lawyers in Jackson Heights, NY, Helping Clients and Their Beneficiaries with Their Estate Planning Needs
Are you considering adding a trust to your estate plan? While a Last Will and Testament and a power of attorney are vitally important to almost every person’s needs, trusts can also be valuable additions to the estate plans of individuals with larger estates or assets that they wish to shield from taxation and creditors.
There are many different types of trusts available to you to choose from in New York, and not every one of them will suit the needs of your estate or your beneficiaries. However, if the trust is well-executed and responsibly managed, then it could be enormously beneficial to everyone who relies upon it.
To learn more about the benefits and responsibilities relating to the creation and maintenance of an NYC trust, please reach out to the law firm of Ortiz & Ortiz, LLP. Our trust attorneys have years of experience helping clients with large and small estates plan their estates and pursue their goals. To discuss your case, contact the law offices in Jackson Heights, NY for a consultation.
What Are the Benefits of Creating a Trust in NYC?
Every estate planning document and tool has its advantages and limitations. And, so, understandably, not every estate planning tool is right for every estate plan. The benefits of creating a trust for your estate plan are numerous, but if they do not benefit you and your beneficiaries, then perhaps you do not require a trust at this time. With that being said…
The Benefits of Creating a Trust:
- Keep assets private and out of the public probate process.
- Depending on the type of trust you create and the stipulations you include within it, you can see the distribution of the trust’s assets during your lifetime and watch how it benefits you and your heirs in real time.
- If you wish it, certain trusts allow you to maintain complete control over the assets.
- Trusts can often provide benefits for avoiding estate taxes.
- Assets within trusts are afforded a certain level of asset protection.
Do You Need Both a Will and a Trust?
It is possible to have both a will and a trust in place and, for some estates, it is highly recommended to do so. However, just as there is no legal requirement to have a valid Last Will and Testament in place, there is similarly no requirement to create a trust for your estate plan. It is possible to have one but not the other.
The biggest difference between the average will and trust is that while a will must enter probate court, a trust does not have to do so. With a well-constructed trust, it is possible to have your assets avoid probate entirely. Probate court is a public process, so the assets being distributed can be learned about if someone so wishes it. If you are worried about privacy more than anything else, then you may wish to do everything possible to avoid probate.
Similarly, items in some trusts also avoid the same estate taxes that assets receive in probate when they’re locked up in a will. However, it should be noted that trusts are generally more expensive than a will, and not every estate can afford them.
What Types of Trusts Are Available in the State of New York?
The law allows for many different variations of trusts, some of which allow for full management by the trust’s creator and others that pass on that control to other parties.
The Common Types of Trusts in New York City Include:
- Irrevocable Trust: With an irrevocable trust, you are making someone else the trustee, and the assets within the trust become the rightful property of your beneficiaries. This makes the assets safe from taxation or collection efforts. However, you do not have control over the trust, unless granted that control by all beneficiaries.
- Living Trusts: Revocable living trusts allow you to be the trustee and oversee the management and distribution of assets within the trust during your lifetime. After your passing, the assets are kept out of probate. With a revocable trust, you are still considered the owner of property within the trust, so these assets are not necessarily afforded protections from estate taxes or creditors the same way an irrevocable trust would.
- Medicaid Asset Protection Trusts: For those who are planning ahead for Medicaid and Medicare, they need to know that the state may take a sizable chunk of remaining assets to pay off the medical care you received. Assets put into an asset protection trust will be better shielded from Medicaid reimbursement efforts.
- Special Needs Trusts: If you are looking out for someone with mental or physical special needs, you may put assets into a trust to tend to their needs while also still allowing them to remain qualified for government programs and benefits.
Speak with the Trust Attorneys of Ortiz & Ortiz, LLP Today About Your Goals for Your Estate Plan
If you would like to protect assets for your beneficiaries and avoid the long probate process, then perhaps you should consider creating a trust for your estate plan.
The law firm of Ortiz & Ortiz, LLP has decades of experience providing legal advice and services to clients in and around Jackson Heights and all five boroughs of New York.
To speak with our trust lawyers and associates, please contact our law offices at 917-540-9772.