Trust are essential when planning your estate. Through trust, you can have anyone whom you solely desire manage and make financial decisions over your assets both while you are alive or dead as well as when you become mentally incapacitated. Although, living trust are in various forms and as such may require knowing the right documents and the legal procedures to filing this documents.
Working with trust attorney in Brooklyn, can make the process of trust plans less complicated. Trust are important to ensure that you and loved ones or benefactor, have their financial future covered. It ensures the transfer of ownership of an asset or property to a separate legal entity. With the help of a trust lawyer, you can place certain assets into trust, thereby protecting the assets left to your children of beneficiaries of your estate from excessive inheritance taxes, and creditor. Trust can also be used safeguard and protect your properties until they get to the rightful hand of the trustee.
Revocable living Trust
A revocable living trust is a legal entity created to hold the ownership of an individual assets. A revocable living trust covers three phases of the trust maker’s life; mainly while he is alive, possible incapacitation and what happens to his estate after his death. When planning for these phases, it is essential you have a trust law attorney, whom through experience on such legal matters, would guide you, and provide the necessary assistance and backing.
While the trust maker is alive, the trust formation and documents ensures that the trust maker own, control and invest in his assets or estate. Even while a trustee may have appointed with the assets transferred or funded into the trust ownership, the trust maker controls the assets during his life time. He reserves the right to undo a revocable trust, hence, the term revocable. The trust maker can reclaim the assets placed into the trust, sell the assets, or divert to another beneficiary.
A trust attorney would guide you through the next phase of preparing your trust for the future, when cases of incapacitations may come up. The trust document should contain a named successor, someone who would step in and take over management of the estates, make medical decisions as well as financial decisions.
The third and last phase of application of a revocable living trust is when the trust maker dies. A revocable living trust at this point becomes automatically irrevocable. The trustee now also pays the trust maker’s final bills, debts and taxes, just as he would had it being the he was alive but mentally incapable. A revocable trust, ensures that the named successor or beneficiary of the estate and properties gets the remaining assets as wanted by the deceased.
Revocable Living Trust helps to avoid probate
Planning for the future of your loved ones won’t be complete if they still have to fight and go through probate to get what is rightfully theirs. A revocable living trust will ensure that probate is avoided. During the probate process, the entire assets are frozen until a judge decides to either uphold the will or over rule it. Thus, the vital advantage of the revocable trust. It is your responsible however, to plan with your trust attorney to ensure that your assets are placed into the trust before death.
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:
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.
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.