There is probably no human being on this planet who hasn’t thought about their death. Yes, the idea is quite morbid and unsavory, but seeing that is inevitable, it tends to cross the mind at least once.
When we’re younger, the thought has its own angst nuance about it. However, adults have it a little bit different, especially when they’ve managed to rake up some estate in their lifetime and have people to look after.
This is the monumental time when the thought of estate planning in Brooklyn makes an entry into their concerns. On top of that, there is the worry about who will be inheriting what. A long list of additional questions also await answers.
An estate planning lawyer in Brooklyn can help solve all of these concerns. One of the solutions they will suggest is to set up a revocable trust in Brooklyn.
What is it?
A trust, in general, is a legal document used for estate planning in Brooklyn. It describes how the assets should be distributed and to whom. What makes it revocable is the fact that you can make as many amendments to it until the day of your passing.
You can fund the trust if you acquire expensive antiquities, buy a property or make any other additions to your estate. You can also remove assets from it and change beneficiaries if you marry, get divorced, have children, etc. However, the moment you take your last breath, the trust becomes irrevocable.
A revocable trust in Brooklyn serves the grantor in three phases – life, incapacity, and death (they don’t have to be in that order).
Life
As mentioned previously, revocable trusts offer the grantor to remain the trustee and continue amending the assets. Even though they are not in the grantor’s ownership, you can still manage them as the trustee. In fact, whatever income is gained from the assets funded in the trust, it goes to you. It is taxable though.Unless you name someone as trustee, you can make decisions on your own and sustain control over the trust.
Incapacity
A mental or bodily disability that renders you unable to make medical, financial, and legal decisions is considered as your incapacity. For this situation, a revocable trust in Brooklyn mentions a successor who can step in to make those decisions.
This involves the grantor naming healthcare proxies, dependable power of attorneys, etc.
Death
Well, this much is self-explanatory. The purpose of setting up a revocable trust in Brooklyn is to ensure your loved ones are taken care of. Since you’ll be transcending beyond the veil, you won’t be there to provide for them, trusts are a solution for that.
When you pass away, your revocable trust will become irrevocable; meaning nobody else can make changes to the trust. The successor trustee will distribute the assets to the beneficiaries as per the instruction you left in it.
Benefits of a revocable trust in Brooklyn
- Probate avoidance becomes a possibility with trusts. Probate is essentially a process that involves your assets being studied by the court for the purpose of determining their distribution. This saves the monetary cost and time spent on court probate proceedings.
- Low-key dealings of a revocable trust in Brooklyn keep it away from being dealt with publically. That’s how the mega-glamorous Elizabeth Taylor sustained the privacy of her estate plan.
- Prevention of challenges to the estate can be achieved with trusts. People you’ve left out of your estate plan are highly unlikely to challenge the plan in order to get what they had their eyes on.
- Guardianship or assignment of a durable POA can be avoided (although some people choose to include these). You can name a trustee who can step in after your passing or incapacity. They can take care of the trust’s management.
Disadvantages of a revocable trust in Brooklyn
- Costs are involved in estate planning. Compared to how much money it takes in the State of New York to create a will, it can seem steep. However, the benefits of a trust outweigh the cost that would incur if the estate was to go under probate.
- Re-titling or funding a trust can be a hassle. You have to rename the estate in the trust’s name each time you acquire it. This involves time spent on filling forms and paying processing fees that may apply.
- A revocable trust in Brooklyn is not really a tax minimizer. The assets in the trust will still incur taxes on whatever they income they gain. They may also be subject to creditor action.
The bottom line here is the fact that compared to wills, revocable trusts offer better management and control over your estate. Yes, there are pros and cons; but that’s true for most decisions we make.
You have to consider whether the pros supersede override the negatives. If you’re still questioning, talking to an estate planning lawyer in Brooklyn may help.
