If you wish to have all your bases covered, your estate plan must be comprised of more than a single document. Understandably so, it may be overwhelming to select which documents are the best fit, and then go about establishing them. This is why legal advisement is almost always recommended during this planning process. Without further ado, continue reading to learn the different living trusts and wills and how an experienced Putnam County trusts attorney at the Law Office of Andres D. Gil, PLLC can help you select the best ones for your estate plan.
What are the different types of living trusts?
In its most general sense, a living trust is a legal arrangement that may be made during your (i.e. the grantor’s) lifetime. With this, you may facilitate the transfer of your assets to fund the trust without the intervention of a New York State surrogate’s court. More specifically, the following types of living trusts function in the following different ways:
- A revocable living trust: this type may be altered, amended, or terminated at any point during your lifetime, but its assets may be included in your taxable estate.
- An irrevocable living trust: this type may be managed by a third party during your lifetime (i.e., the trustee), but its assets may not be included in your taxable income or estate.
- A charitable trust: this irrevocable trust type may distribute contributed assets upon its expiration, after providing current income/partial tax deduction to you and your noncharitable beneficiaries.
- A special needs trust: this type may have your beneficiaries with disabilities receive its funds, all without jeopardizing their opportunities to collect from federal and state public assistance programs (i.e., Social Security Income).
Are there different types of wills?
You may be wrong to assume that there is a standard will that every testator establishes. Rather, the different types of wills are as follows:
- A simple will: this type may allow you to dictate who will distribute your assets (i.e., the executor), who will receive your assets (i.e., the beneficiaries), and who will be the guardians of your minor children.
- A testamentary trust will: this type may allow you to place some of your assets into a trust for your minor beneficiaries of inheritance recipients, with certain terms and conditions attached.
- A joint will: this type may allow you to establish a shared estate plan with your spouse, but cannot be altered after the death of one testator.
- A living will: this type may allow you to instruct how your medical care is to be handled should you ever become incapacitated.
At the end of the day, the type of living trust and will you establish is based on personal preference and ultimately the unique character of your estate. But if you have any further questions or concerns on the matter, please do not hesitate to reach out to a skilled Putnam County estate planning attorney. Schedule your initial consultation with the Law Office of Andres D. Gil, PLLC today.