A living revocable trust helps individuals avoid probate, and the hassles and expenses that come with it. It also allows individuals to keep their estate private, so that it is only available to their immediate family in case of their demise. This legalized document enables you to appoint a trustee who is responsible for holding title and managing your funds in the most effective manner. However, as the grantor, you have the ability to modify your living trust the way you find feasible up until you pass. Moreover, not only does transferring funds into a living revocable trust save you a lot of time, but it also helps you save thousands of dollars in official fees.
Setting Up a Living Trust in Queens
While setting up a living trust is not a very complicated task, it is best to consult an expert estate planning lawyer in Queens before you go forward with the process. Here is a step-by-step procedure to set up a living trust in Queens:
Among various living trusts, the revocable ones are the most common, although it is best to select one after you carefully consider all the factors related to your particular situation. Some factors include your marital status, whether you own a business, whether you are a parent or not, and more. Once again, the best way to end up with the best choice is consulting a financial advisor to guide you through the process.
The next step you need to take is deciding what parts of your estate you would like to place into your living trust. You can even place your residential property in the trust to secure it.
Once you have decided upon the assets you need to place in your trust, next decide how you will receive them. Usually, living revocable trusts benefit family relatives, a spouse, charity or even business partners. However, they don’t necessarily have to. Your funds are your personal property, and you can let any individual or institute of your choice inherit them.
It is important to appoint a trustee who you can completely trust and rely on after you pass. Administering a living revocable trust is a huge responsibility and you need to make sure that your assigned person is right for the job.
Finalize your legal document. Answer all the questions about your financial background and estate with complete honesty. Finally, have your living revocable trust reviewed by your estate planning lawyer in Queens and sign it. Lastly, store it in a safe place and inform your trustee about it.
Before you carry on with the last step mentioned above, look at the following phases that your living revocable trust will cover:
Phase #1 (When the Grantor is Alive and Well)
As the grantor, you need to make sure that the legal documents of your living revocable trust contains clauses that allow you to utilize the stored funds for your personal usage during your lifetime. When you are alive and completely in the right state of mind, you can use your assets the way you find suitable. Moreover, your trustee takes direction from you. You reserve the right to terminate your trust at any time during your lifetime. Hence the term living revocable trust. You are in complete control of your estate.
Phase #2 (In Case the Grantor Is Disabled)
Your living revocable trust should explicitly state what would happen in the case you become mentally incapacitated. In such case, you won’t be able to spend, manage, invest, or distribute your funds as you won’t be in the right state of mind. A successor trustee is to be appointed in a living revocable trust so that they can take over the responsibility of the trust in such circumstances. Plan everything way ahead of time with your estate planning lawyer in Queens so that your estate is managed in the best possible manner.
Phase #3 (After the Grantor Passes Away)
A living revocable trust cannot be modified after the grantor’s demise and hence it automatically gets converted to an irrevocable one. The successor trustee who has been appointed by the grantor takes full responsibility of the grantor’s estate and takes care of any unpaid taxes, loans, and bills. The process is quite similar to when the grantor loses their right state of mind. However, in this case, the trustee then distributes the remaining funds to the names beneficiaries while following all the instructions provided in the final legalized document.
- We hope you found something worth your while in the information provided above regarding creating a living trust in Queens. Consult an estate planning lawyer today, and get started with the process.