A will decides what happens to your estate when you are no longer available, and generally, the Will as a type of estate document, only plan for your exist and no while you are alive. However, this is not so with the revocable trust. A revocable 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 in New York.
A revocable trust is a legal entity created to hold the ownership of an individual assets. When planning for these phases, it is essential you have a trust attorney in New York with experience on such legal matters, would guide you, and provide the necessary assistance and backing.
Revocable trust is different from a will
A revocable trust is different from will. This distinction can be seen in the way each documents are executed and their benefits. Living trust are legal documents through which you place your assets for protection and also easy transfer of estate to appointed beneficiary called the successor trustee. A will however, is a written legal documents with a plan to distribute your assets upon your death.
The revocable trust can be used for transfer of an estate
The revocable trust document can be used to transfer property or a part of an estate to a desired beneficiary while you are 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.
Revocable trust can be used in cases of incapacitation
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.
When the trust maker dies, the document can also be used
The third and last phase of application of a revocable trust is when the trust maker dies. A revocable 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 Trust prevents unwanted guardianship
In the process of creating a living trust, you name a trustee, who takes over making financial or medical decisions for you when you are unable to dos so. This trust is only implemented when you become incapacitated. A court proceeding would no longer be needed for establishing guardianship and appointing a legal guardian for you. Your trustee as stated in the revocable trust would step into this decision making duty of managing your estate and other affairs.
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 can be placed in a Living Trust
Real Estate, houses and Mortgages
To transfer a house or other real estate property to a revocable trust in New York, a new deed must be made with the local real estate records. Estate taxes issues would also have to be settled. It is always good consult a living trust attorney for estate plans.
Bank and other financial accounts
Financial accounts can also be transferred into the living trust, for protection or for ease of transfer to beneficiaries.
Start making your estate plans and obtain a revocable trust.