One of the most basic documents that New York residents may create for their estate plan is a will. All persons should make a will as soon as possible so that they can ensure their assets are distributed as they desire. In some cases, individuals should also create a trust to further safeguard their assets. Here are the top six reasons that a person should make a trust:
- To Avoid Probate and Conservatorship: By creating a trust, persons can bypass the lengthy and expensive probate process. A will is forced to go through the probate court in order to be seen as legal. This may take more than a year to settle, whereas a trust may be settled in a matter of months, without involving the courts.
- To Provide for a Loved One with Special Needs: Those who have children with physical or mental disabilities may provide for them through a trust without disqualifying them for government benefits. With a will, persons can bequeath money to special needs individuals, but this may jeopardize their eligibility.
- To Obtain Privacy in Court Proceedings: Any will that passes through the probate court is subject to public record. A trust, on the other hand, is a private proceeding.
- To Get Flexibility for Blended Families: Those who have blended families may consider a trust to provide for children or spouses from prior marriages.
- To Transfer Out-of-State Property: If an individual holds property in another state, then he or she can more easily transfer ownership of that property in a trust. If the property is distributed via a will, then there will be additional expenses because it may have to go through probate in multiple states.
- To Protect Assets: In a trust, assets are more easily protected from creditors. This allows your loved ones to keep more of the assets than they would be able to with the use of a will alone.
Have further questions on what a trust can do for you? Speak with a Long Island estate planning lawyer at Adler Law to discuss the specifics of your situation. While the firm usually charges $500 for a Wealth Planning Session, the next two people who mention this article can obtain the consultation free of charge! Call the firm as soon as possible to get started. Don't forget to mention this article!