New York Trusts
A New York Trust Lawyer can explain that dealing with Estate Planning issues are difficult. The first time that you may encounter estate planning concepts could be with the passing of a loved one, where you are obligated to handle their estate. Or perhaps you are in need of a comprehensive estate plan to protect your family. Documents such as a Last Will and Testament, Durable Power of Attorney and Trust, are key Estate Planning tools that will ensure that your wishes are honored, that the estate is handled the way it was intended, and that the heirs are taken care of. A Trust is an arrangement where a trustee holds title to property for another, called a beneficiary. There are many different kinds of trusts, depending on the purpose. A Trust always has four components:
- Someone must create it (this person is the grantor);
- Someone must agree to hold the Trust property for the benefit of another (known as the trustee);
- The money and assets of the Trust must be held for the benefit of another (the principal)
- Someone must benefit from the Trust (the beneficiary).
Two other areas of distinction are whether the Trust is a Living Trust or a testamentary Trust. A Living Trust is one where the Trust is effective during the grantor’s lifetime. A testamentary Trust is where the Trust takes effect after the death of the Grantor.
The biggest benefit of a Trust is that the property that is placed into the Trust does not have to go through the Probate process. Probate is a court process that entails authenticating the decedent’s Will, paying off the assets of the estate, and distributing the estate’s assets to the heirs. Probate can be a long and drawn out process, depending on the complexity of the estate. Probate can also be costly, as there will be court costs and attorney fees associated with this process. If the decedent had a Trust, the process is entirely different. When someone passes with a Trust, a successor trustee (which was appointed in the Trust document), will be in charge of paying the debts of the estate and distributing assets. This process will not involve the courts, which means the process is far quicker, simpler, and less expensive. Once the debts have been paid and the assets have been distributed to the heirs, the Trust terminates automatically. It is important to consult with a New York Probate Lawyer during the Probate or Estate Administration process, and there are many details to care of and to ensure that the process goes smoothly.
One of the most responsible and loving things you can do for your loved ones is ensure that your estate is secured in the event of your passing. If you are creating your own estate plan, or you have been called upon to deal with estate of your loved one, it is important to contact a New York Estate Lawyer for advice. At Stephen Bilkis & Associates, PLLC will provide you legal guidance and a free consultation. Contact any of our offices throughout the New York area, including all five boroughs of New York, including Manhattan Brooklyn Bronx queens and Staten Island, Long Island in both Nassau and Suffolk County and Westchester County. Call today for your appointment at 800.696.9529.