The administration of a trust is a responsible and legally complex undertaking which requires the help of a skilled lawyer.
Asset protection is not only for the elderly or the wealthy. For anyone with assets, estate planning, specifically creating a trust, ensures that those assets are managed and distributed in accordance with your wishes while also saving money, time, and probate headaches. In fact, the sooner you take steps to ensure the safety of those assets with a professionally crafted trust, the more peace of mind you can have going into the future.
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At the Matus Law Group, our experienced NYC trust lawyers are dedicated to your future and that of your loved ones. We take your legacy seriously, ensuring that your hard-earned assets are protected for when you need them and are there for your loved ones after you are gone. Depending on your specific needs, our attorney can create trusts of all kinds so you can rest assured that your legacy will live on.
A trust is simply a legal fiduciary relationship where there are three specific roles. The Trustor or Grantor places assets into the trust for the benefit of Beneficiaries at some point in the future. The trust is then managed and administered by a Trustee. All three of these roles can be played by different or multiple people or the same person, depending on the type of trust.
The trust will also give directives for how assets and real estate must be administered upon the grantor’s death. The trustee is responsible for the assets in the trust and disbursing them according to those directives.
A trust can be created with a variety of goals. They can:
A trust can be made a component of a will or a separate entity altogether, depending on the situation. Because there are many different types of trusts with very unique goals, you should discuss your needs fully with an experienced New York City trust attorney who can advise you of your best options. Do not hesitate to contact a lawyer for a consultation and start planning your future (929) 412-1808.
Trusts will fall into two main categories: revocable and irrevocable.
A revocable trust is a living trust (one that is created during the grantor’s lifetime). It allows the grantor to revoke or change the terms of the trust during their lifetime. It then becomes irrevocable upon the grantor’s death.
Most revocable trusts are used to avoid the cost and delay of probate and allow for the management of assets in a safe and definable way. Because the grantor retains control of the trust, however, the assets in the trust remain part of the grantor’s estate and may still be subject to taxes, depending on the type of trust.
An irrevocable trust can be testamentary (created by a will) or living. Once the trust has been established, it cannot be changed or revoked. In this case, the assets are no longer considered part of the grantor’s estate. Because of this, irrevocable trusts are often used to reduce taxes.
There are many different types of trusts, including:
A trust that benefits only your direct descendants and passes your wealth securely to future generations, your children and grandchildren and so on. A bloodline trust does not include spouses or family members not related by blood.
Revocable living trusts are the most common type of trusts that are used in estate planning. These separate entities own the assets in them and are managed by a trustee. A revocable living trust is still under the control of the grantor until death or until the grantor changes or revokes it. It allows the grantor to set out how the assets will be managed or distributed upon their death. A revocable living trust will become irrevocable upon the death of the grantor.
Special needs trusts manage assets that are left to a special needs dependant while ensuring that they will not lose any public or government assistance.
Marital trusts provide income for a surviving spouse in order to take advantage of the unlimited marital deduction laws.
These trusts are often created after the death of a first spouse. The assets are held separately from the surviving spouse to ensure that they are passed on to beneficiaries of the first spouse and not to any new spouse.
Asset protection trusts are created to shield assets from potential creditors.
Dynasty trusts are created to pass family wealth to future generations while protecting the transfers from taxes.
Spendthrift trusts allow assets to be passed on to beneficiaries while setting out restrictions on how and when the beneficiary may use those assets.
Standby trusts allow the trustee to manage assets should the grantor become incapacitated.
Charitable trusts are created to benefit beneficiaries as well as philanthropic interests.
Many individuals have the misconception that trusts are only used in the realm of the wealthy and give them little consideration. While most understand the need for a will, few appreciate how a trust may be even more important.
While both instruments are important in transferring property, a trust allows assets to pass to beneficiaries outside of probate, saving money and a great deal of time. Assets distributed to beneficiaries through a trust may be passed on immediately by the trustee without waiting for the courts. Consequently, a will and trust are often made in harmony with each other, as a will provides for matters that a trust cannot.
Your future and the future of your beneficiaries are always paramount concerns when planning your estate. You want to trust that your estate is structured in the best possible way. Many trusts ensure your ability to have access to your assets while you are alive and then have them distributed to your beneficiaries in the most advantageous way for them when you are gone. In this way you can insure the guardianship for your loved ones. This requires the skill of a New York City trust attorney who fully understands the legal implications of the trust while fully considering the best interests of all involved.
A skilled trust attorney will discuss your needs, how you want assets and estate distributed, and help you understand the financial and tax consequences. Your lawyer can answer complicated legal questions, advise you of the various trust options available when it comes to your estate, and explain the financial ramifications of these options. This enables you to control your wealth while protecting your legacy from creditors and taxes.
The administration of a trust is a responsible and legally complex undertaking which requires the help of a skilled lawyer. A trusts attorney can assist the trustee with the administration of the trust after your death by:
If you have no one that you feel comfortable appointing as trustee to take care of your estate, you may consider naming a professional fiduciary to act in this capacity and that’s when you would need the help of a lawyer. An experienced trusts lawyer is well equipped to handle the details of managing your trust and distributing assets after your death consistent with the terms of your trust.
Making plans for after you are gone can be an emotional undertaking. Each client brings their own concerns and unique circumstances to the table.
At The Matus Law Group, we can help. Our experienced New York City trust lawyers have served families just like yours for over two decades with sensitivity and dedication. We are happy to answer your questions and concerns and offer options for your unique needs. Contact us online or call us at (929) 412-1808 to schedule a consultation.
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