Trusts To Safeguard Your Legacy
Plan for your and your loved ones’ future by establishing a trust. In legal terms, a trust is a financial agreement among you the original asset-owner, your trustee, and your beneficiaries. The trust document contains legal instructions for what assets you want the trust to distribute on your behalf. It is important to understand the two types of trusts that exist, irrevocable and revocable trusts, as well as the trust administration process when creating your estate plan.
Revocable Vs. Irrevocable Trusts
There are two different types of trusts and each could benefit your unique legal needs differently. Overall, a trust can help you avoid probate. During your lifetime, your property will be moved into a trust and the trust will then own the property, then after you pass, your beneficiaries will receive your assets as directed by your New York estate plan.
How A Revocable Trust Works
A revocable trust, also known as a living trust, can be altered at any time. The flexibility of a revocable trust gives the owner a level of control during their lifetime to add or subtract beneficiaries. This flexibility comes with its own set of risks. For example, a revocable trust is not protected from creditors and assets within the trust are subject to both state and federal estate taxes.
The Irrevocable Trust
In contrast, an irrevocable trust offers all the advantages of a revocable trust and more. This legal document is set in stone the minute the legal document is signed. This type of trust is very difficult to modify after the document is created and agreed upon. The irrevocable trust removes the assets from your taxable estate resulting in no income tax liability and no estate tax after death.
Ingold Law PLLC is on your side to assist your loved ones if you become incapacitated and when you pass. We can guide you through the trust administration process and support you and your loved ones every step of the way.
Talk To An Attorney Today
If you have a trust, we will secure the process to ensure that the instructions you have in place are followed. If you pass away or become incapacitated without a trust, our Buffalo law firm can provide guidance for your loved ones as they navigate the necessary probate proceedings. Contact our office at 716-972-3698 to make an appointment.