There are many different tools a person can use to create an estate plan in New York. Depending on their personal situation, this can include a trust. Simply put, a trust is an agreement between its creator (a trustor) and a third-party trustee. The trustee manages the trustor’s assets on behalf of their beneficiaries. This can be beneficial for some, however, it is not necessary for everyone. Continue reading below to learn more about trusts and contact an skilled New York estate planning attorney for guidance during this time.
What are the Pros of Setting up a Trust?
Not everyone has to create a trust. However, there are certain benefits to doing so. This can vary by person depending on what they want for their estate. With the creation of a trust, you can do the following:
- Plan for how your property and wealth will be distributed to either individuals, organizations, or both. Transferring assets this way allows people to have more control over how it is done. The amount can be paid out all at once or the payments can be staggered.
- Allow beneficiaries with special needs to receive their inheritance from the estate without being barred from receiving government assistance.
- Help manage assets while the individual is still living.
What are the Cons of Setting up a Trust?
It is important to also be aware that there are certain disadvantages to creating a trust. Generally, trusts have higher costs of preparation than other methods that can be used. This is due to the fact that the trustor is required to retitle their assets in the name of the trust. Doing so takes both time and money. Failing to retitle assets can result in them not passing through the trust and having to go through probate instead. In addition to this, trusts do not offer special estate tax benefits or asset protection. This means if a creditor needs access to a person’s assets, they can do so with those that are in a trust.
Using an Estate Planning Attorney
There are a variety of ways that an estate plan can be set up, including with a trust. The specific setup a person may need can vary depending on their personal desires. That is why it can benefit anyone to enlist the help of a New York estate planning attorney for assistance during this time.
Contact our Firm
If you or a loved one needs assistance creating an estate plan and wish to speak with an experienced attorney, contact the Law Office of Andres D. Gil, PLLC today.