You should carefully explore all of your options when you plan your estate. This is one of the reasons why personalized attention is so valuable. When you discuss everything with a licensed estate planning attorney, you can ask questions and gain a full understanding of the possibilities that are out there. With this in mind, we will look at living trusts and the role of the successor trustee in this post.
Revocable Living Trusts
Some people think that trusts are only used by wealthy people. There are certain types of trusts that are utilized by high net worth individuals for tax efficiency and asset protection purposes. These would be irrevocable trusts.
Revocable living trusts don’t help with asset protection or transfer taxes, but they are very valuable for people who want to facilitate efficient asset transfers.
Let’s say that you maintain direct possession of your personal property and state your final wishes in a last will. You probably want to see your heirs receive their inheritances right after you pass away. Unfortunately, this will not happen.
In the will you name an executor. This is the person who will administer the estate. The executor must admit the will to probate before any inheritances are distributed to the heirs.
Probate can be a time-consuming process. It will typically take around nine months at minimum in the state of New York, and it can take longer if the circumstances are complicated in any way.
There are also expenses that accumulate during probate.
If you utilize a revocable living trust, you facilitate asset transfers outside of the process of probate, but you retain control of the assets while you are living.
In the trust agreement you name a trustee, and you name a beneficiary. As the grantor of the trust you can act as the primary trustee and the beneficiary at first, so you directly control the actions of the trust.
You name a successor trustee and successor beneficiaries who will assume these roles after you die. The successor trustee can be a person that you know, but it can also be a professional entity like a trust company.
After your passing, the successor trustee will follow the instructions that you leave behind in the trust agreement. Assets will be distributed to the successor beneficiaries according to your wishes, and probate will not be a factor.
Special Report on Living Trusts
When you learn about living trusts, you can immediately see the appeal. If you would like to obtain more detailed information, download our special report on the subject. This report is being offered free of charge at the present time, and you can obtain access through this website.
To get your copy, click this link and follow the simple instructions: Smithtown, NY Living Trust Report.
- Why Would You Use a Trust? - October 19, 2021
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- How Can You Mitigate Estate Tax Exposure - September 27, 2021
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