What Do I Need to Know About Revocable Trusts in New York?

What Do I Need to Know About Revocable Trusts in New York?

There are many options available for people who wish to create an estate plan. This can include setting up a trust. Doing so can protect their wealth from taxes to pass on as much as they can to a designated beneficiary. This is possible by appointing a third-party trustee to manage the individual’s assets on behalf of the beneficiary. There are various trusts that can be made based on the desires of the trustor. One of these is a revocable trust. Continue reading below and contact an experienced New York estate planning attorney to learn more.

What is a Revocable Trust?

It is possible to modify, change, or terminate a revocable trust at any time throughout the trustor’s life. It is important to know that this can be done without the permission of the beneficiary, as long as the trustor is of sound mind to do so. This makes revocable trusts a common choice for people looking to create a trust.

How Do I Fund a Revocable Trust?

When a revocable trust is made, it can either be funded during the person’s lifetime or at their death. There are different actions that can be taken to fund a revocable trust. These can vary depending on the assets being put into it. This can include:

  • Residences or other real estates. In order to transfer real estate into a trust, trustors need to execute a deed. It is important to take these steps to receive the benefits of property tax exemptions or valuations.
  • Marketable securities and cash that are not in tax-deferred savings. Trustors in these situations need to open accounts in the name of the trust so that a bank or brokerage can transfer the assets from the individual account to the trust account.
  • Interests in closely held business entities. There are often restrictions on transferring these assets, which is why it is important to consult an attorney. This can be limits on types of transfers, requiring the consent of other parties before transferring, or requiring the consent of other parties before a transferee receives full ownership rights.
  • Life insurance policies. Trustors who change the ownership of a life insurance policy to their trust should only need to change the beneficiary designation on the policy in most cases. This can be done with a form from the life insurance company.
  • Tangible personal property. This can include jewelry, furniture, artwork, books, clothing, electronics, etc. These assets usually do not have ownership documents, which is why they can be transferred through a general transfer and assignment document. 

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.

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