It can be difficult to think about the future, but there are a number of important questions you will need to address. Read on to learn more about what happens to your assets in the event of your passing, and some of the most important estate planning documents you can create.
What Happens to My Assets When I Die?
Many people wonder what will happen to their assets once they pass away. The answer is, it is up to you. If you die without first creating a will, this is known as dying intestate. This means that your assets will be distributed by the state of New York. Unfortunately, this also means that your assets will not be distributed according to your wishes. To avoid this, it is important to create a will. A will is a document that declares how your assets will be distributed once you pass away. In this document, you can determine which assets will be left to which of your loved ones. Another way to ensure that your assets go where they are supposed to is by creating a trust.
What is a Trust?
A trust is an agreement between a trustor and a trustee. A trustor creates a trust leaving assets to a beneficiary. A trustee is a third party assigned to manage the assets of the trust for the beneficiary.
All trusts fall into one of two categories: a revocable trust or an irrevocable trust.
- Revocable trust: this is also known as a living trust. This allows the trustor to revoke the trust or make changes and revisions to the trust.
- Irrevocable trust: this is legally binding. Once it is filed, the trustor cannot make any changes to it.
Just a few of the trusts available in New York include:
- Irrevocable Life Insurance Trust: This allows a trustor to remove their life insurance from the estate plan so the beneficiaries are free from any taxes that are placed on it.
- Special Needs Trust: This can be created for a loved one with a disability to make sure they receive the financial support they need throughout their life.
In order to ensure that all goes as planned, it is best to work with an experienced estate planning attorney. Reach out to our firm to discuss your options today.
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.