An essential part of estate planning in NYC is preparing a legalized document with extensive details about how you want your funds to be used and distributed after you pass. One method to ensure that your last wishes are fulfilled is by creating a living trust in NYC. There are many plus points involved when it comes to writing a living trust on time. Some of them include avoiding probate, keeping your estate private, and managing your funds in a better manner.
With a living trust, you can place your funds in a trust and use them for your personal needs during your lifetime. You also get to assign a trustee who is responsible for transferring your assets to your designated recipients (called beneficiaries) after your demise. These trusts are called ‘living’ as they are written when you are alive.
There are mainly two types of living trusts; irrevocable and revocable. The former cannot be modified therefore you need to make it with extreme caution and understand its policies properly before you finalize your decision. The latter on the other hand can be revised or adjusted as per your needs. Due to the flexibility it provides, majority of individuals opt for a revocable trust instead. If you are still in doubt and are unable to make a decision, following are 9 top reasons to write a living trust in NYC to motivate you to secure your assets:
Reason #1
A living trust enables married individuals to save up on their estate taxes. This is known as portability i.e. the ability to join the individual estate tax exemptions of both the spouses. This will allow you to protect double the amount of money from estate taxes. Moreover, you also get to save sufficient funds for your loved ones.Reason #2
Creating a revocable living trust allows you to hold your assets for your minor children or grandchildren. In such case, the individual you appoint to be the trustee has the authority to manage the money inherited for the minors until they reach an age specified by you. This allows you to accommodate the needs of all of your minor children exactly the way you wish to.Reason #3
With a living trust, along with protecting minors, you can also prevent your grown-up children from overspending. A living trust entitles you to appoint a trustee who can hold the funds in the trust for as long as they want in case the child gets into an alcohol or drug problem. The trustee then distributes the money as necessary.Reason #4
A living trust enables you to keep your funds within the reach of your immediate family. In case your child gets divorced, you don’t want a large a part of funds to wind up with your child’s ex spouse.Reason #5
If you are worried about your funds being passed on to your spouse’s new partner after your demise, it is best to create a living trust in NYC while you can. This prevents your spouse from getting ownership over all of your assets.Reason #6
The most important and common reason of having a living trust prepared is that it allows you to avoid probate. When it comes to a living trust, there is no need to get any kind of approval from the court before your funds can be transferred to the individuals inheriting it. This allows your relatives to avoid any kind of probate court proceedings. Such processes take almost a half to a full year. Moreover, probate proceedings can cause you to lose 3-5% of your total assets.Reason #7
Along with avoiding probate, a living trust enables you to protect and maintain the privacy of your family members. A probated legal document becomes a matter of public record and thus it can be accessed by anyone and everyone. As the funds placed in a living trust don’t have to go through any probate proceedings, they can’t be viewed by unauthorized individuals.Reason #8
In case you become subject to any disabilities during your lifetime, a living trust allows a successor trustee to make important financial decisions for you. You wouldn’t have to worry about your estate going in the wrong hands. Moreover, you will be able to access the assets and benefit from it in your time of need.
It is best to carry on with estate planning procedures in advance to benefit the most from it when the time comes. If you are still not sure if preparing a living trust in NYC is the right choice for you, consult a professional to assist you in the process and secure your assets right away!
