There are many different living trust benefits which you may wish to take advantage of. However, you need to know what a living trust can do for you. You also need to know how to follow all formal requirements within the state of New York for creating and funding a living trust.
Eghrari Wealth Training Law Firm can provide you with help getting all of the living trust benefits that you need. Our Suffolk County trust lawyers can help you to determine what kind of trusts are right for you and will explain why you need trusts as part of your asset protection and estate plan. We can also help you with every step of the process in creating a legally valid trust that provides you with the expected benefits. Give us a call today to learn more.
What are Some Living Trust Benefits?
A living trust is a trust which you create during the course of your lifetime. It is also called a revocable trust. The New York City Bar explains that “often, living trusts help you during your life” and then make it possible to “give away the property after your death.”
Living trusts have many advantages when you create them during your lifetime. For example:
- Living trusts can be modified or changed as needed. You can also revoke the trust at any time. You have a great deal of flexibility and maintain substantial control over assets which you have placed in a living trust.
- Living trusts can be part of an incapacity plan. You could become incapacitated at any time due to an unexpected injury or because you get badly ill. If you become incapacitated, someone should take control over managing assets and investments.
- If you put assets into a living trust, you can name a backup trustee. This backup trustee can immediately start taking control over the assets held in the trust once you become incapacitated. This is important if you have any assets which require hands-on management and which could decline in value if you cannot take care of them due to incapacity.
- Living trusts can help you to avoid probate. If you put property in a living trust, you can be the beneficiary when you are alive and receive income from investments or appreciation. You can set up the trust so the income and/or assets transfer to your spouse, children, or other loved ones outside of probate after your death. This makes the process of transferring the assets much quicker. However, you do need to be aware that a living trust will not help you to avoid any estate taxes. All assets held in the trust are still yours.
While a living trust can provide protection for your property in case of incapacity, the fact that you retain control over the assets means they are still a countable resource for you. If you need nursing home care and are trying to qualify for Medicaid coverage, assets held in a living trust will still be considered accessible resources that could put you over the limit for means-tested benefits. As a result, if your goal is to protect your nest egg, you may wish to consider an alternative type of legal tool.
How Can You Take Advantage of Living Trust Benefits?
If you have decided a living trust is right for you, you will need to create a living trust. You must follow all New York requirements to create a trust document and ensure that it is legally enforceable. You must transfer appropriate assets to the trust which you wish to protect in case of incapacity and which you plan to transfer outside of probate. You will also need to name a trustee (which is usually you, while you are alive) and to name a backup trustee who is going to manage trust assets if you can no longer do so.
The process of creating an enforceable living trust can be a complicated one, so be sure to get legal help in understanding the process.
Getting Help Creating Living Trusts
Eghrari Wealth Training Law Firm has a long history of helping clients throughout Suffolk County, NY to secure living trust benefits. Give us a call at (631) 265-0599 or contact us online to learn more about the different ways in which we can help you with trust creation. You can also download our estate planning checklist to find out more about how living trusts and other types of trust documents can fit into your comprehensive estate plan.