Estate planning can go beyond a simple will. Declaring your wishes through a will is a great start. For some, there is a need to explore other testamentary documents to help assets get to a beneficiary efficiently. After you execute your will, it may be in your best interest to consider using a trust for certain assets. A trust manages assets before they are sent to probate, the court procedure for an estate. A trust differs greatly from a will as assets are often passed quicker as they avoid probate and cheaper as they come with significant tax benefits. A trust is not solely for the high net worth. There are numerous reasons for any person to consider a trust. Understandably, planning one’s estate can be a trying and uncomfortable conversation. Our firm is dedicated to providing a comforting environment to help address every client’s needs as they embark on developing a comprehensive estate plan, including wills and trusts. Zimmet Law Group has decades of experience practicing estate law. Our knowledgeable attorneys are ready to guide you through the various trust options and help you find the right option for your goals. For a consultation with one of our attorneys, contact Zimmet Law Group, P.C.
What is a trust?
A trust is an alternative way to pass assets to a beneficiary. Trusts are beneficial because they avoid probate. In doing so, they are passed quicker because they avoid court procedures, and cheaper because they avoid court fees and other legal fees. In addition, they often provide tax benefits, leaving more to those chosen and, for some trusts, protects assets from creditors.
Simply put, a trust provides a third party the authority to hold assets on behalf of a beneficiary. This party is called a trustee. His or her responsibility is to receive and manage assets for the benefit of a beneficiary. The owner of the property or asset (the settlor) must legally transfer ownership to the trustee. Once the settlor passes, the trustee will transfer the asset to the beneficiary.
What kind of trust is right for you?
Answering that question is complicated. There are numerous types of trusts available. Each one has its own function. The basic types of trusts are revocable and irrevocable.
- Revocable trust: A revocable trust is created during the lifetime of the trust maker and managed by the creator, acting as the trustee. The trustee can amend the trust throughout his or her lifetime, adding and removing assets to the trust at will. While a revocable trust helps avoid probate, it comes with a diminished tax benefit and does not act as an asset protection technique.
- Irrevocable trust: Generally, this trust cannot be changed, amended, altered, revoked, or otherwise modified after creation. There are exceptions, including the explicit written consent of the beneficiary. Irrevocable trusts provide benefits, including a quicker allocation of assets, savings on the court and legal costs, and the tax benefits that come with executing a trust.
Whether you wish to leave money or property to a family member, care for a pet, or leave assets to a charity, there are numerous trusts that can meet your needs. Below is a small sampling of the many trusts available to you.
- Asset protection trusts
- Charitable leads trusts
- Generation-skipping trusts
- Supplemental needs trusts
- Charitable remainder trusts
- Special needs trusts
- Life insurance trusts
- Testamentary trusts
- Qualified personal residence trusts
- Pet trust
- Inter vivos trusts
Contact a New York City trust attorney
Zimmet Law Group, P.C. provides knowledgeable legal services regarding trusts to clients in New York City and the surrounding suburbs. It is important to develop an estate plan that meets your needs and protects the family you will leave behind. For a consultation with one of our attorneys, contact Zimmet Law Group, P.C. today.
