Estate planning is one of the most important things an individual can do for themselves and their family. There are a number of different components to a comprehensive estate plan, some of which include the execution of a will, an advance healthcare directive, asset preservation, appointing a guardian, power of attorney, Medicaid planning, and the establishment of a trust. Trusts exist to preserve certain assets, whether they are monetary or real property. Typically, trusts are created after a will is executed.
There are many benefits to creating a trust in New York City. First, the items that are included in the trust will not be required to go through the probate process. As a result, there are significant tax benefits to passing down inheritances in a trust. It is important to note that trusts are not exclusively for individuals of a high net worth. There is usually a trustee appointed to be the authority of the trust who receives and manages assets until the settlor passes.
One of the questions that often arises is how long the trust will be effective. If the trust is monetary in nature, it will exist until the funds are gone. For example, if the trust exists to protect college funds for a beneficiary, the trust will dissolve when the college tuition is paid off. Another type of trust can hold real property, such as a house. That situation allows the trust to exist until the asset is gone.
If you have questions about creating a trust in New York, contact our firm today.
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.