Many attorneys and legal services can help people in the areas of wills, trusts, powers of attorney, probate, and more. Before you understand why you may need a good living trust document, you need a sound understanding of what a living trust is. A living trust in layman’s term is simply a contract that you make with yourself. It can also be a foundational estate planning document.
Idea behind a Living Trust Document
The idea behind a living trust document is to make sure that you have a plan in place that allows someone to manage your finances for you in the instance that you are disabled or incapable of doing it by yourself. This plan can also be helpful in handling your finances after your death. It creates a framework and process that someone on your behalf can follow when allotting all your finances. It makes sure that your finances are safely transferred to your loved ones and right heirs.
Positions of Trust
With any type of trust, there are three positions that you can follow. You have the Grantor, Trustor, or the Settlor. The Grantor is the person who creates the trust, and so you can think of them as the maker of Trust. They decide what the trust says, what happens during the periods of disability, and what happens upon death.
They also have the responsibility of taking all your assets and re-title them to the trust. The second position involves the trustee, and they act as the trust manager. This person manages all of the assets of the trust. They have the ability to decide what will happen to the assets, and whether you need to buy the assets or sell the assets.
All the powers over asset that you have will shift over to the trustee in your absence. The Beneficiary is another role to fill when creating a living trust. This is the person who gets the asset, and they get to use and enjoy them. To sum this setting up, the trustee manages the assets that the Grantor put in the trust for the benefit of the beneficiary. These three positions will exist in any type of trust document that you create.
Living Trust Vs. Wills in the Estate Planning Context
Estate Planning is an essential consideration for homeowners around the nation. However, it is unfortunately overlooked by many people, including first time home buyers in New York City. The most commonly used method for planning post-death asset distribution is a Will. Nonetheless, a Trust not only performs the same function, but also helps you enjoy some additional benefits which include probate avoidance.
In fact, if you combine a pour-over will with living trusts, you can ultimately minimize and eliminate the time you spend on financial expenses that come with probate. Overall, a living trust is a great tool and mechanism for avoiding probate, and a great alternative for signing up with a will.
A living trust is also more private, and offers additional layers of protection from the challenges you can face from court. A living trust can also be pivotal if you live out of state since you may not have to fulfill the requirement for ancillary probate proceedings in the region where you have property.
Overall, a living trust, or a revocable trust is the method from which you can allocate assets to your beneficiaries in your absence, without worrying about the probate process. Real estate, finances, and other assets go into the living trust with the help of the Grantor. The trust documentation involves the name of a trustee and beneficiary.
What does a Living Trust Outline?
A living trust defines the future of your property once the settler or property owner passes away. Since the property assets transfer into the trust, they are no longer applicable for probate. The Grantor fills the role of the trustee. This means that they have complete authority over the trust, along with the assets inside the trust.
Consequently, if the Grantor is still alive, a living trust can be revoked. The Grantor is also responsible for any tax obligations and income that stem from the assets. If the Grantor is unavailable or incapable, the trustee is handed the responsibility for the assets. They have to follow the outlines of the trust documentation, and make distribution and pay bills accordingly.
A Living Trust is Private
Unlike a Will, a living trust is not public. Hence, signing up with a trust means that you can enjoy extra privacy, compared to a last testament and will. A will is subject to public submissions and probate, and becomes a part of public record.
Benefits of a Living Trust in New York
The probate procedure is a painstaking, public and expensive undertaking that authorizes the will through the court. If you did not transfer the assets in the trust before death, probate is not possible. A living trust can alleviate and shorten the time of the probate process, along with providing protection and privacy from court challenges.
The primary setback of the living trust is the transferring process. Assets such as real estate can be difficult and time-consuming to shift into a trust. It may require large amounts of complex litigations and paperwork. Individuals in New York will typically prepare for living trusts as only one part of the entire estate planning procedure.
Get Reliable Living Trust Services in Queens, New York
As you can see, managing and navigating the litigations behind living trusts can be a difficult endeavor to accomplish without professional help. To ensure a smooth transfer of your property asset into your trust, and a comprehensive and just outline over asset distribution, it is important that you seek the best help.
Our lawyers have been successfully practicing over the issues of Wills and Trusts in Queens, New York for years. Simply by giving us a call, we will set you up with an attorney that specializes in the service you are looking for.
Contact us today and get expert consultation over Wills and Living trusts!