What is the Difference Between a Will and a Trust in New York?

What is the Difference Between a Will and a Trust in New York?

Everyone is different, therefore, everyone will have a different estate plan. Your estate plan should suit your individual needs. As a result, there are many different documents you may want to consider. Two of the most important documents are wills and trusts. Read on to learn more about what these documents entail and the differences between them.

What is a Will?

A will may be one of the most important documents you ever create. It is a legal document that declares your wishes for your estate after your passing. It will ensure that your wishes are fulfilled, and take unnecessary stress off your friends and family.

A will may include assets such as:

  • Real estate
  • Bank accounts
  • Securities
  • Items of personality

Additionally, you can designate gifts and other items of sentimental value to family and friends. For example, if you wish to write a letter to a loved one, or leave a favorite photograph to a friend, you can designate these requests in your will.

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.

To figure out which type of trust is right for you, you should speak with an experienced estate planning attorney.

Just a few of the trusts you can create 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.

If you have any questions or concerns regarding the estate planning process, contact our firm today to speak with an experienced attorney. Estate planning can be stressful, but our firm is here to walk you through the process every step of the way.

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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