Many people have phobia for discussing the inevitable and planning towards it. While discussing what would happen when you get old and frail could be quite uncomfortable, not discussing it at all would be detrimental to yourself, your property and family. You are advised to seek an estate planning or Living trust attorney in Brooklyn to discuss and create a Living trust Brooklyn.
A living trust is an estate planning document which gives you (the grantor) the opportunity to place all your estate property into a trust while you’re still alive, and allows you to transfer same property to your beneficiaries even while you’re still alive or after your death. Usually, the grantor is also the trustee of the living trust, and as such, he as the rightful owner has total control of the assets.
A living trust is different from a will in that, while the will declares how your estate will be distributed at your death, the living trust gives you control of your estate even while you’re still alive but probably old and frail. The major advantage of a living trust over a will is that a living trust avoids probate and saves cost and time required for court proceedings in order to probate a will. A living trust is also revocable and amendable.
Assets to be transferred in a living trust
It is not always an easy thing creating a living trust Brooklyn, as a living trust attorney will better explain to you. The following are a list of potential assets which you must have to transfer to your living trust:
- Real estate
To transfer a house or other real estate property to a living trust in Brooklyn, a new deed must be made with the local real estate records. In Brooklyn, certain tax transfer forms will have to be filed along with the deed. It’s good you consult a living trust attorney before delving into these waters.
- Cooperative apartment
To transfer a cooperative apartment, the cooperative cooperation must be contacted for the transfer to be approved. The cooperation will then have to issue a fresh stock certificate naming the trustee as the owner of that apartment.
If the house or apartment being transferred is subject to a mortgage, then the mortgage bank must be notified to obtain its approval. If not, then the full mortgage must be paid since the transfer was unauthorized.
- Bank and brokerage accounts
Banks and brokerage companies all have their forms and requirements for transferring accounts into trusts. These requirements or rules must be properly investigated before completing the transfer.
Advantages of creating a living trust
There are several reasons why it is important for you to have a living trust.
- It eliminates the need for probate
With a living trust, no probate will be held after your death and thus, there will be no court costs or probate attorney fees. There will be no court delay in distributing or transferring your assets, and all your wishes will be kept private between you and your beneficiaries. Your assets will go directly to your beneficiaries after your death when you create a living trust, and this is a major advantage over a will.
- It avoids guardianship proceedings
When you create a living trust and name a trustee, when you later become incapacitated there will be no need for a court proceeding in establishing guardianship and appointing a guardian for you. Your trustee would step in because you have given such person full authority to manage your personal and estate affairs without external or governmental intervention.
- It reduces estate taxes
Estate taxes must be paid to the state after the owner dies and before the estate is distributed to the heirs according to his last will. But with a living trust Brooklyn, no estate taxes will be paid as the estate is simply transferred to the trustee without knowledge or interference of the state.
- It ensures that your wishes are effectively carried out without contest from any party
A disgruntled party may successfully contest a will but this is not so with a living trust. Whatever is in the living trust document is final and is not subject to any form of contest.
- It gives you power to manage your assets even after your death
With a living trust, you can choose what age your assets will be handed over to your children. With this, you can provide for the care and educational support they’ll need when they grow up. You can name a trustee who will manage the assets until your minors are old enough to handle them themselves.
- It gives you an overall peace of mind
After successfully creating a living trust, you and your family can sleep well knowing fully well that your wishes must be carried out just as you have stated.