Due to the fact that there are many parts to an estate plan, the idea of creating one can often become overwhelming. However, doing so is one of the most important things a person can do for themselves as well as their loved ones throughout their life. An estate plan allows you to have a plan in place for the future of your assets. There are many different tools that can be used to do so, one being a trust. It is important to have a basic understanding of such tools and how they can benefit you. Continue reading below to learn more.
What is a Trust?
There are many people who use a trust to manage their assets within their estate plan. Simply put, a trust is a contract between the estate and a trustee. A trustee is a person who manages a trust for a beneficiary, the individual who benefits from inheriting it. The arrangement allows the trustee to take care of these assets on behalf of the beneficiary until they are able or allowed to do so themselves. There are many different types of trusts that can be created in New York, including:
- Revocable Trust
- Irrevocable Trust
- Testamentary Trust
- Inter Vivos Trust
- Life Insurance Trusts
- Special Needs Trusts
- Charitable Remainder and Charitable Leads Trusts
What are the Benefits of a Trust?
Each tool used to create an estate plan is different from one another. Therefore, they each have their own benefits. The benefits of a trust can include the following:
- Probate avoidance: Probate, a lengthy and costly court proceeding, often takes place during estate administration. However, it can be avoided through the use of one or more trusts in your estate plan.
- Tax reduction: Trusts can help you reduce estate and gift taxes on your estate.
- Control over disbursement: With a trust, you have more control over asset disbursement than a will would provide. A trust can reduce the chances of a beneficiary engaging in poor financial decisions and harming their inheritance.
Contact our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.