If you were to die without a will, your assets would be passed according to intestate succession rules. These rules generally allow your closest living relatives to inherit your assets. The court would appoint an executor for your estate and a guardian for your children.
Trust
A trust is a tool that allows a third party, known as the trustee, to oversee assets on behalf of a beneficiary. Contrary to popular belief, trust funds aren't only for the very wealthy.
A trust can be used for a number of purposes. For example:
- Protect assets. Trusts are commonly used as asset protection tools because the assets contained in the trust are no longer legally owned by you. This prevents them from being seized by creditors or subject to legal judgments.
- Minimize taxes. Trusts can be used in conjunction with a will to minimize taxes, prevent your assets from going through the time-consuming probate process, and protect your personal privacy.
- Prevent mismanagement of assets. Leaving an inheritance in a trust allows you to have greater control over how your beneficiaries will spend the assets. This can be helpful if you are worried about spending decisions due to age, mental health concerns, addiction, or a past history of poor money management.
- Provide for a loved one with special needs. If you have a loved one with a physical or mental disability, providing an inheritance outright can jeopardize their claim to valuable government benefits. A special needs trust can pay for expenses that will improve their quality of life while still allowing them to access necessary healthcare services.
- Support charitable giving. If charitable giving is important to you, creating a trust can be an effective way to leave a lasting legacy for a cause that you support.
Please keep in mind that a trust is not a substitute for a will. A trust expands your estate planning options, but you will still need to create a Last Will and Testament.
To learn more about our probate-avoidance plans, click here.
How Estate Planning Protects Your Loved Ones
Estate planning is an absolute necessity for New Yorkers of any age, no matter your wealth level or current health status. Dying without an estate plan in place can leave your children and spouse in limbo—unsure of how to cover costs or what will remain within the family at a time when they are already in a state of grief.
You can start working with an experienced attorney today to craft a comprehensive estate plan that covers:
- Assigning guardianship for children
- Creating trusts for dispersing assets according to your wishes
- Drafting a will and naming an executor
- Ensuring heirlooms go where you want
- Granting power of attorney if you become incapacitated
- Making sure special needs dependents are cared for after you are gone
- Planning for health emergencies with advanced medical directives
- Preparing for long-term care through Medicaid
- Protecting your family from unnecessary tax liability
Schedule a Consultation Today with our New York Estate Planning Attorney
Alatsas Law Firm is conveniently located for residents of Brooklyn, Queens, and Staten Island. Our ground floor office is handicapped accessible with a subway stop and two bus lines nearby. Once your initial plan has been created, it is a good idea to review your documents every three to five years to ensure they are still appropriate. Life events such as a significant increase or decrease in income, marriage, divorce, and the birth or adoption of a child can all affect your estate plan. Changes in tax laws may also necessitate an update of your documents.
We know that dealing with legal issues affecting your family can be stressful, but we will proactively work to provide you with peace of mind as you move forward. If you’re in need of assistance with a divorce or family law concern, contact us today at 718-233-2903 to schedule a free, no-obligation initial consultation.
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