Let’s take a brief look at what a Trust and a Will is.

What is a trust?

A trust can be seen as a legal train used to pass ownership to a third party (trustee) who holds the assets and later transfers ownership to the beneficiaries of the trust. This legal document can help shield your assets from taxes and the probate process. It can help lessen paperwork and can make the transfer of assets less difficult. It is important you note that not all assets can be included in a trust. Assets like cash accounts, valuable personal properties, etc. can go into a trust whereas assets like insurance, health savings account and medical savings account are not to be included in a trust.

 To create a trust, you will need the assistance of a competent estate planning attorney or a trust attorney. The two primary types of living trust are the Irrevocable and Irrevocable trust.

What is a will?

A will is very common. This is a legal document that indicates how you want your assets to be managed and shared. It states the beneficiaries of your assets, it contains the name of your children’s guardian, the name of your estate executor, etc. A will is a very significant estate planning document as it allows you to express your wishes regarding your assets in a lucid manner.

What are the difference between a trust and a will?

A will needs probate a trust doesn’t

A will needs to undergo probate before the transfer of assets can take place. Probate is a court process done to determine the authenticity of a will. This process is dreaded by estate owners and estate beneficiaries because it takes time and it can be expensive. A trust, on the other hand, doesn’t require probate. In fact one of the reasons a trust is created is to avoid probate.

A will doesn’t provide for life and death

A will come into effect when the testator dies. It can’t be used to plan for the disability or incapacitation of the testator. If the owner of a will become incapacitated before he or she dies, the family members will have to visit the court to request that a guardian is chosen to oversee the affairs of the testator. This process can be stressful and expensive. A trust, on the other hand, has provisions for disability. So in case the grantor becomes incapacitated before death, everything will be taken care of based on the terms of the trust.

Contact an Attorney to prepare your will or Trust

A trust and a will are two important legal documents. You will need the help of a professional when creating these documents.

Remember, a trust isn’t a will that can easily be created with the help of an online tool. You will need someone with experience if you wish to create a trust that conforms to your wishes regarding your assets and your estate in general. You will also need the help of an attorney to create an error-free will. Don’t leverage online tools, they may not get the job done for you as you want.

An estate planning attorney is your go-to professional when in need of estate planning advice and when you also need to create a trust (revocable or irrevocable) and a will. They boast of the experience and knowledge to assist you. They can also offer you valuable advice when needed. Contact us and we’ll provide you with the best estate planning attorney for your trust.

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What is a Revocable Trust?

Basically, a revocable trust, which is also regarded as a living trust, is a document that ascertains how your assets will be shared after your demise. This document is used to hold some of your assets for future purposes. Your assets can be anything ranging from your investments, real estate, personal possessions, etc.

A revocable trust is to be created while alive. It is important that you contact an estate planning attorney or a trust attorney when creating a trust. They can guide you through the process. After creating a trust, you are to transfer or assign ownership of your assets to the trust. Assets contained in the trust are then distributed to chosen beneficiaries after your demise. What makes a revocable trust unique is that, anytime you wish, you can decide to terminate the provision. That is why it is termed “revocable.” However, it is very important you note that when the grantor (creator of the trust and owner of the estate) dies, the revocable trust becomes irrevocable because the grantor isn’t alive to make changes. Irrevocable trust, on the other hand, is the opposite or a revocable trust.

What is an Irrevocable trust?

An irrevocable trust is a trust that cannot be altered without the knowledge of the beneficiaries designated by the grantor. If as a grantor, you decide to terminate or alter the terms in an irrevocable trust, you will have to get the go-ahead of the beneficiaries you selected before doing so. This is because having assigned ownership of your assets to the trust, you can no longer claim ownership of the assets present in the trust even if it was put there by you. It is safe to say that an irrevocable trust is a risky type of trust.

The irrevocable trust is the opposite of the revocable trust where it is possible to alter the trust. However, the grantor is stripped off benefits like creditor protection in the process.

As risky as this type of trust may seem, it has some benefits. An irrevocable trust can prevent the payment of taxes on assets placed in the trust. This is because the assets present in the trust are no longer a part of the benefactor’s taxable estate. It simply denotes that, the assets aren’t taxable after the death of the grantor. Preparing an irrevocable trust can be difficult, for this reason you need to hire a competent estate planning attorney.

Which is better for you, a revocable trust of an irrevocable trust?

Trusts are majorly used to escape huge estate taxes. When I say “huge” we are talking about several million dollars in estate taxes. So unless you are a billionaire, it is best you consider a will.

A trust can be very expensive to create. A will, on the other hand, is cheaper to create compared to a trust. So choose wisely.

Contact an Attorney to prepare your Revocable or Irrevocable Trust

A revocable trust and an irrevocable trust are two complex legal documents. You will need the help of a professional when creating these documents.

Remember, a trust isn’t a will that can easily be created with the help of an online tool. You will need someone with experience if you wish to create a trust that conforms to your wishes regarding your assets and your estate in general.

An estate planning attorney is your go-to professional when in need of estate planning advice and when you also need to create a trust (revocable or irrevocable). They boast of the experience and knowledge to assist you. They can also offer you valuable advice when needed. Contact us and we’ll provide you with the best estate planning attorney for your trust.

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Creating a trust for a minor

In a trust created for little children, the beneficiaries are usually the children. Creating a trust for those little children of yours is definitely not a walk in the park. It consists of several process. However, you will have very little to worry about if you hire a competent estate planning attorney or a trust attorney.  Below are some steps to stick to:

Choose a trustee

For any trust created, there must be a grantor and a trustee. If the owner of the trust (grantor) creates a living trust, he can designate his or herself as the trustee. But, if a grantor decides to select his or herself as a trustee, then he or she must make provision for a successor should incase the individual kicks the bucket.

The duty of the trustee is quite simple. He or she is to manage and distribute the assets placed in the trust based on the terms of the trust.   Furthermore, the trustee has a fiduciary duty to take certain actions on behalf of the beneficiaries. Isn’t that simple enough?

Draft the terms of the trust

This is very important because the terms of the trust will determine how the assets placed in the trust will be managed and distributed after the demise of the grantor.  The grantor will have to make plans regarding how the children will receive the assets placed in the trust. For example, the grantor can indicate the exact time (age) he wants the minor children to receive the assets placed on the trust. When the money placed in the trust is large, it is usually distributed in little portions. This is a very common practice. 

Draft the required trust documents

After all has been done concerning the designation of a trustee and drafting the terms of the trust, the grantor must go ahead and create the necessary legal document which is regarded as the trust deed.  In a trust deed are the names of the beneficiaries and the designated trustee as well. This document also indicates if the trust is a revocable trust or an irrevocable trust. If the grantor wants to relive him or herself from the stress of creating this document, the individual can get a lawyer to create it or buy a trust kit.

After the creation of the document, it requires proper execution. That is, it has to be signed in the presence of a notary or in the presence of one or two witnesses.

Place assets in the trust

This is the final phase. The grantor has to assign ownership of his or her assets to the trust for the trust to be complete. If the grantor intends to place real properties in the trust, the individual may be required to present a new deed that comes with trustee language, like “Paul Parker, trustee of the Parker Living Trust, dated April 12, 2020.

After the transfer of the assets to the trust, it is the job of the trustee to manage the assets for the beneficiaries.

Remember, a trust can help secure the future of your children. So make that wise decision today.

Estate Planning Attorney

Creating a trust for a minor can be a very complex process. Such plans are best handled by professional lawyers, not yourself or the some estate-making site on the net. To create a trust that secures the future of your minor children, you need someone who understand your wishes and is capable of incorporating those wishes in the terms of the trust. You need someone who won’t make silly mistakes that might ruin that trust. An estate planning attorney and not yourself, is the best pick for this job. Contact us and we will provide you with the best trust attorney who’ll help create the best trust for those minor children of yours.

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A living trust is an important estate planning element. This element or medium can be used to store individual’s assets while still alive. Creating a living trust is one of the best ways to share and safeguard the assets of your estate. This estate planning element can also protect your assets from the court intervention.

A living trust can help you exercise excessive control over your properties. It can also help bring your wishes regarding your estate to pass. Cool, right? There are several types of living trust, so it is best you contact a trust attorney or an estate planning attorney to determine which trust is best for your situation.

Remember, estate owners place their assets in revocable trust. However, not all assets can be placed in a revocable trust. We’ll be taking a lucid look at the various assets that you should consider placing in a trust.

What assets can go into a revocable trust?

Life Insurance

It is possible to alter the name attached to your life insurance to that of the trustee designated for the revocable trust without having to worry about any tax issue. However, ensure you contact an estate planning attorney before you make any decision. When it boils down to revocable living trust, there exist some states that don’t safeguard a person for creditor protection reasons.

Cars

As surprising as this is, it is very true. Of course, you can change the titles of cars in your trust.  Not just cars, bikes, airplanes, trucks, etc. But, mind you, some sates consider this transfer as a sale and would charge taxes for changing the title of the vehicles in your trust.

If this happens in your state, the best thing to do is to drop the idea and buy your new car in the name of the trust. This aside, in some states, probate is not done to facilitate the transfer of ownership of a vehicle after the death of the owner. Some states gives individual the opportunity to choose beneficiaries for their vehicle before their demise.

Health Savings Accounts and Medical Savings accounts

It is impossible to rename these accounts in the name of your trust. This is because these accounts are exempted from trusts or custodian accounts created to foot medical bills that qualify.

What assets cannot go into revocable trust?

Cash accounts

Things like savings, CDs, money markets can all be included in your trust. However, ensure that you are very cautious with CDs. Your bank may impose penalties on you if you decide to change the title or name of your CDs into a revocable living trust. They do this because they believe that by changing the title you are trying to withdraw your funds early. Early withdrawal of funds leads to a penalty.

Valuable personal assets

This one is very common. Types of valuable properties are necklaces, PCs, paintings, sculpture, cars, pets, equipment, and the list just goes on.

You can contact a lawyer regarding the tendency of drafting a pour-over will. A pour-over will enables your executor to move your valuable personal assets to your trust after your demise. Probate will still be required here but since it involves little properties, it shouldn’t be that difficult.

Business interests

You can as well place your shared, general and limited partnership interests, etc. in a trust.

Estate Planning Attorney

Estate planning can be a very complex process. Such plans are best handled by professional lawyers, not yourself or the some estate-making site on the net. To plan an estate that portrays your wish, you need someone who understand your wishes and is capable of incorporating those wishes in your estate plan. You need someone who won’t make silly mistakes that might ruin your precious estate plan. An estate planning attorney and not yourself, is the best pick for this job.

An estate planning attorney is not only experienced in planning estates, an estate planning attorney is well conversant with all elements of an estate plan. This denotes that, they can offer you valuable advice regarding your estate plan. They can plan an estate that avoids probate, help you plan an estate that doesn’t require your beneficiaries to pay so much in estate taxes, etc.

If you want to provide your family with the best care and protection even after you are gone, you need to hire a competent estate planning attorney to assist you in planning your estate. We boast of such attorneys. Contact us now and let’s help you with that plan of yours.

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What is a Living trust?

A living trust is an important estate planning element. This element or medium can be used to store individual’s assets while still alive. Creating a living trust is one of the best ways to share and safeguard the assets of your estate. This estate planning element can also protect your assets from the court intervention.

A living trust can help you exercise excessive control over your properties. It can also help bring your wishes regarding your estate to pass. Cool, right? There are several types of living trust, so it is best you contact a trust attorney or an estate planning attorney to determine which trust is best for your situation.

What are the benefits of a living trust?

A living trust boast of several benefits which is why it remains one of the best estate planning elements. By creating a living trust, you are directly solidifying your authority over your assets. As stated, it can help prevent probate, it can also help in the event of your incapacitation. Let’s take a look at some common benefits of a living trust:

It protects your assets from probate

All estate owners hate the probate process. In fact, your estate beneficiaries are also bound to hate the process if you don’t put plans in place to bypass this stressful process. Assets you place in living trusts are free from probate. This denotes that, these assets can be transferred to the designated beneficiaries without court approval which is in the form of probate.

Helps you save money

As weird as that seems, it is the gospel truth. Everyone wants to save money. You want to save money, right? Well, creating a living trust is one simple way to go about that. Because a living trust helps you bypass the probate process, you tend to save money that would have been used to pay for court fees. Court fees, sometimes, can be sort of expensive, you know?

What counts as incapacitation in a living trust?

When you create a living trust, you will have to designate a trustee. The trustee will help make crucial decision in the event you become incapacitated. With that being said, what does it mean to be incapacitated?

An incapacitated individual is one that isn’t capable of taking care of him or herself. There are lots of illness and accidents that can result in incapacitation. One of such illness can be Alzheimer, or other types of mental sickness. In addition, a ghastly accident of any sort can also lead to incapacitation.

Estate Planning Attorney

Estate planning can be a very complex process. Such plans are best handled by professional lawyers, not yourself or the some estate-making site on the net. To plan an estate that portrays your wish, you need someone who understand your wishes and is capable of incorporating those wishes in your estate plan. You need someone who won’t make silly mistakes that might ruin your precious estate plan. An estate planning attorney and not yourself, is the best pick for this job.

An estate planning attorney is not only experienced in planning estates, an estate planning attorney is well conversant with all elements of an estate plan. This denotes that, they can offer you valuable advice regarding your estate plan. They can plan an estate that avoids probate, help you plan an estate that doesn’t require your beneficiaries to pay so much In estate taxes, etc. If you want to provide your family with the best care and protection even after you are gone, you need to hire a competent estate planning attorney to assist you in planning your estate. We boast of such attorneys. Contact us now and let’s help you with that plan of yours.

The post What Counts As Incapacitation In a Living Trust appeared first on Best Estate Planning lawyer in NYC.

A good synonym for revocable trust is living trust. A good lawyer will always advice his or her client to create a living   trust. A living trust will come in handy for those who want to escape the probate process. Every estate owner surely wants to plan an estate that avoids this process, this makes a revocable trust or a living trust a very important element of estate planning.

What can a living trust do?

A living trust can facilitate the smooth and easy transfer of assets to designated beneficiaries. With the help of a revocable trust, you can appoint someone to oversee your financial affairs even while alive or dead. Isn’t that amazing? The benefits of this significant estate planning document doesn’t stop there. There are more!

It is important you note that there are various forms of revocable trust. Each form is used for diverse purpose. Thus, it is very imperative that you are aware of the appropriate documents, you know the appropriate legal process, and you fully acknowledge the basics of a living trust.

You can make this process smooth like butter cutting through knife by simply contacting an attorney who is conversant with trusts and all that is associated with it. It is very important that you create a trust, as failure to do so could put the financial future of yourself and those you care about in jeopardy. A trust facilitates the easy transfer of your assets to a legal a different legal personality who is called a trustee. 

With the assistance of an estate planning attorney, you can place some of your assets in your trust. Doing this will protect it from probate and unnecessary estate taxes. In summary, creating a trust is the best way to safeguard your family and loved ones from some unpleasant things that may happen post-death.

A revocable trust is just another type of will

You all know a will, right? That legal document that contains how you want your estate to be distributed.  It is very safe to say that a revocable trust is another type of will after carefully scrutinizing what each elements are. Having stated what a will is, let us take a look at what a revocable trust is so you can see the clear similarity. A living trust is that document that helps safeguard your assets and facilitate the easy transfer of your assets to the designated beneficiaries. Though a will and a living trust are almost similar, they can’t replace each other. It is important that you still you go ahead and create a will even after creating a living trust.

Types of trusts

Deciding if you need a living trust or not depends on your wish regarding your estate plan. There exist several types of trusts, but the most common are the revocable and irrevocable trusts. There is also the special needs trust and the spendthrift trust.

Contact an estate planning attorney or a trust lawyer to determine the trust that is appropriate for your estate plan.

Estate Planning Attorney

Estate planning can be a very complex process. Such plans are best handled by professional lawyers, not yourself or the some estate-making site on the net. To plan an estate that portrays your wish, you need someone who understand your wishes and is capable of incorporating those wishes in your estate plan. You need someone who won’t make silly mistakes that might ruin your precious estate plan. An estate planning attorney and not yourself, is the best pick for this job.

An estate planning attorney is not only experienced in planning estates, an estate planning attorney is well conversant with all elements of an estate plan. This denotes that, they can offer you valuable advice regarding your estate plan. They can plan an estate that avoids probate, help you plan an estate that doesn’t require your beneficiaries to pay so much in estate taxes, etc.

 If you want to provide your family with the best care and protection even after you are gone, you need to hire a competent estate planning attorney to assist you in planning your estate. We boast of such attorneys. Contact us now and let’s help you with that plan of yours.

The post The Basics Of a Revocable Trust appeared first on Best Estate Planning lawyer in NYC.

Advantages of transferring real estate into a trust

The advantages of funding real estate into a trust include probate avoidance, tax savings and asset management.

• Probate

Any asset you fund into a trust will automatically escape probate. Possibly you already know how problematic and expensive probate can be and you would be glad to realize that funding your house into a trust will allow it pass to your loved one without having to go through the court.

• Tax savings

If your state imposes inheritance and estate taxes to property, then you may want to find ways to limit how much your loved ones would be paying as tax. Living trusts do not make you free from tax since they are revocable, and you cannot fund real property you’re using into an irrevocable trust. However, if your trust is well-designed by an estate planning attorney with an eye towards tax savings, then your final tax liabilities will be minimized to a considerable extent.

Disadvantages

• It is relatively complex — funding a real property into a trust is not as easy as you would a piece of jewelry. It involves many formalities and any mistake can be catastrophic.
• Cost — the cost of executing a trust is also more than that of a will. While trusts offer more advantages over a will, you have to be prepared for the cost. Before taking this step, you have to ensure the trust is well-rounded to give you the best benefits. It becomes important that you seek help from an estate planning attorney.

How to transfer real estate into a trust

To transfer real property into a trust, you have to sign a new deed that transfers ownership; that is, the trust will now be the owner of the house rather than you.

The best way to go about this is to get an estate planning attorney to do it for you. This is because of the formalities involved and to avoid mistakes.

• Prepare the deed

You have to get a deed document. Your attorney can provide this or else you get it online. It must be for your specific state.

• Current owner: As the owner of the real property, write your full name in the deed. This name should be exactly how you wrote it on the original deed and the trust itself. If the property is owned by joint tenancy, then you should include your name and your spouse exactly as they are in the original deed.
• New owner: in this field, you are to put the name of the trust as the new owner of the real property. If you are the trustee of the trust, you can as well put your own name as the new owner. But in some states, it is better to put the name of the trust as the new owner.
• Description: Here, you are to describe the property exactly as it is, where it is located, and what part of it you are transferring to the trust. If it is jointly owned and you wish to transfer only your part, then you should state clearly that you are transferring only one-half the interest.

After all information is adequately filled, you should then notarize the deed. Those directly involved must also sign.

• Keep a record of the deed

You must then take the document to the office that keeps records of local property. They will make a copy of the document and keep it. They will stamp the original and give back to you.

• Tax

Different states handle real property taxes differently. Most states do not request a tax so long the property is not bought with money. Some other states consider the fact that the owner doesn’t change since you as the trustee is still the owner of the property, but will impose tax when the trust becomes the new owner. You should find out this information about your state online.

• Changing Insurance records

Most real property have insurance policies covering them. Since ownership has changed, you should inform your insurance company to make the necessary changes in their document, such as the owner of the real estate. These changes would not affect the terms, cost and coverage of the policy.

Get help from an estate planning attorney near you

If you live in New York, our New York estate planning attorneys can offer you professional guidance in transferring your real estate to your living trust. Simply contact our law office today.

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