When people want to create an estate plan, they have a variety of different tools at their disposal. In some cases, this may include a trust. A trust is an agreement between its creator, referred to as a trustor, and a third-party trustee. This person manages the trustor’s assets on behalf of beneficiaries until they are able to do so themselves. This can be beneficial for some, however, it is not necessary for everyone. Continue reading below to learn about the pros and cons of creating a trust and contact an experienced New York estate planning attorney for guidance during this time.
What are the Pros of Setting up a Trust?
There are many reasons why a person may benefit from creating a trust for their estate plan. This can vary depending on the goals for their estate. A trust can allow you to do the following:
- Plan for how your property and wealth will be distributed to individuals or organizations. Transferring assets through a trust allows people to have more control over how their assets are given. The amount can be paid out all at once or they can be staggered.
- Allow beneficiaries with special needs to receive their inheritance from the estate without being barred from receiving government assistance.
- Help manage assets while the individual is still living.
What are the Cons of Setting up a Trust?
While there are certain benefits to creating a trust, there are also certain disadvantages. Generally speaking, trusts have higher preparation costs than other methods of setting up an estate. This is because they require the trustor to retitle their assets in the name of the trust, taking both time and money. The failure to retitle assets can cause them to not pass through the trust and instead have to go through probate. Trusts also do not offer special estate tax benefits or asset protection. If a creditor needs to obtain access to assets, they can do so with those that are in a trust unless certain provisions are put in place.
Using an Estate Planning Attorney
Trusts are just one way assets can be prepared for in estate planning. There are several other ways this can be done to create a comprehensive estate plan. That is why it can benefit all individuals to retain the services of an experienced New York estate planning attorney to provide you with guidance during this time.
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.