Living trust is one of the most essential estate document. A trust is a document that allows you transfer estate properties to desire beneficiary, make plans towards what happen to your estate when you are unable to manage them. Typically, a living trust is an extensive estate plan document that covers or can be utilized when you are alive and well, when you become incapable of managing your affairs (financial, personal) and lastly when you die.
There are two major type of living trust. The revocable living trust and the irrevocable living trust. These different trusts still serve the same purpose of protecting your estate and also beneficiary, however, they do so in different manner.
Revocable trust.
A revocable living trust is a type of trust document that allow the trust maker retain power over his estate properties. Asset transferred into this trust would be safe and the trust maker has control over the trust. You may decide to dissolve the trust, handle the assets himself name a successor trustee or beneficiary of the trust. A named trustee would handle the assets [placed in the trust should you become incapable or physically disabled.
Note: At the death of the trust maker, a revocable trust become an irrevocable trust. At this point you would no longer have control over what happens to the trust.
Irrevocable trust.
Once an irrevocable trust is created, it cannot be changed. The trust maker would not have any control over the asset placed in the trust. The asset would be controlled by the trustee until the beneficiary can take ownership. This type of trust is favorable for quick transfer of estate properties and also prevent excessive tax consideration on estate.
Note: transfer of asset to an irrevocable trust is always permanent.
Advantages of revocable and irrevocable trust.
- The irrevocable trust Prevent excessive estate taxes.
- You can easily and effortless control what happens to the asset placed in your revocable trust. Even when you are incapable the named successor trustee would ensure that your desires are implemented.
- Estate privacy and secrecy can be achieved with a living trust while transferring estate properties to named beneficiaries.
- Living trust prevent long exhausting probate processes.
- A revocable trust allows you to control asset placed in it. You can remove or add a named beneficiary, close up the trust.
Bottom line.
- Whether you die intestate (without a Will) or you created a Will, probate will be required to implement any of the estate plans. However, once there is a will, the probate process will be easier and quicker.
- Since the first mistake of not making estate plan has been made, you don’t need to make anther costly mistake. Rather than have someone incompetent act as an administrator in the intestacy administration, you could ask the court to allow you get an estate attorney.
- The attorney would be professional enough to help you with necessary document and paperwork. For your convenience, contact an estate planning attorney near you.
- All debt must be paid before final distribution of the deceased estate properties.
- For a decedent with will the estate’s executor or personal representative assigned by the decedent initiate probate proceedings in a surrogate court. This is usually the first step in implementing an estate plan.
- Petition to the court will be easier with the help of an estate or probate attorney, contact one closest to you today.
- A named individual can react the appointment to act as an executor of the estate. If such is the case, the court will look to out for someone else.
A living trust can save you from lots of troubles. The document would ensure that all facet of your life is planned for and that any unexpected occurrence would be taken care off. Should you want to create a trust; contact an estate planning attorney near you.
Contact an estate planning attorney near you
Simple mistakes can ruin estate plans; as such you need an expert capable of making suitable and approbation estate plans and documents. Contact our estate planning attorney near you today, 11352, New York to guide you through the process estate plan documents.
We offer assistance, counseling in estate related issues, probate matters, family law issues, and other advance guardianship and conservatorship issues in New York.