A Living Trust is a powerful estate planning tool that can not only help you manage your property later in life, but distribute or manage it according to your wishes upon your death. A quick review on living trusts: A Living Trust is an estate planning tool that is often used as a will substitute. When you create a trust, you transfer assets such as real estate, stocks and bonds, and personal property to the trust. These assets are then managed for your benefit during your lifetime, and either … [Read more...] about Four Questions You Must Ask Yourself Before Creating a Living Trust
Wills & Trusts
Renouncing a Will
Renouncing a will means giving up an inheritance left to you within a will. But why would anyone want to give up their inheritance? Renunciation may be a tactic used by a spouse who would choose to take a share of an estate provided by state law, known as an elective share, rather than a smaller portion of the estate that may be provided for in the will. An ‘elective share’ is a legal device that was originally intended for the protection of the wife. In the past, family property was often … [Read more...] about Renouncing a Will
Should You Put Your House In Your Child’s Name?
As estate planning attorneys, clients often ask us if they should simply retitle significant assets, such as their home, into their children’s names to smooth the transfer of assets upon their passing. In many situations, the answer will be no, and here’s why…. Medicaid Look-back Periods Senior citizens often must turn to Medicaid, a need-based, joint state/federal program, to help with the catastrophic costs of nursing home expenses. Medicaid may review gifts and transfers of assets up to … [Read more...] about Should You Put Your House In Your Child’s Name?
The Advantages and Disadvantages of a Living Trust
There have been many advertisements and websites that tout the benefits of a living trust, but like other estate planning tools, it may not be suitable for each and every estate. While there are certainly many benefits, we need to review the disadvantages as well. The Disadvantages of a Living Trust A trust, whether a living trust or any other type, is a complex legal document and agreement, and as such, a trust is more work to create than other estate planning tools that avoid probate. To … [Read more...] about The Advantages and Disadvantages of a Living Trust
What a Trustee May and May Not Do…
Choosing a Trustee is as important a task as choosing an Executor for your estate. We’ll review the Trustee duties and what a Trustee may and may not do within those duties. First, let’s review the purpose of a Trust as an estate planning tool. A trust is a legal arrangement in which a "grantor," the person creating the trust, transfers ownership of property into the name of the trust and selects a Trustee to manage it. The Trustee may be a family member, a trust attorney, or, in the case of … [Read more...] about What a Trustee May and May Not Do…
Planning for a Purpose: Charitable Lead Trusts
A charitable lead trust can be used to transfer assets to children or others at a significantly reduced tax liability. Creating a charitable lead trust involves four parties: A settler or grantor: the person setting up the trust A trustee: the person managing the trust Two beneficiaries: one a qualified charity or tax-exempt organization, the other a ‘regular’ beneficiary, often the grantor’s children. Charitable lead trusts are designed to pay an income stream to a charity for a term … [Read more...] about Planning for a Purpose: Charitable Lead Trusts
Will Trusts Defined
A will trust, also known as a testamentary trust, is a trust that is literally defined by the will and created upon the death of the testator, the person who had the will drafted. Normally, we think of a trust as a living trust, a legal arrangement in which a "grantor," the person creating the trust, transfers ownership of property to the trust and selects a trustee to manage it. The trustee may be a family member or a trust attorney, and in the case of a living trust, the grantor may also be … [Read more...] about Will Trusts Defined
Estate Planning for Parents
Many parents with young children overlook the important process of estate planning. They often consider themselves too young, too busy, too healthy or too cash-strapped to begin this essential task. The important decisions that come with estate planning can also paralyze them, for who can imagine their children being raised by another person should the unthinkable occur? But the problem is…the unthinkable can occur, and parents should certainly hope for the best, but plan for the worst. … [Read more...] about Estate Planning for Parents
The New York Probate Process
Probate is the legal process which administers the estate of a deceased person and transfers ownership of their assets. Probate law varies from state to state, as does the process of probating a will or estate, so let’s focus on the particulars of probate in New York. Probate takes place in probate court upon the death of an individual. In New York, this court is known as the Surrogate’s Court. The New York probate process is considered somewhat less burdensome than many other states, but … [Read more...] about The New York Probate Process
Why Would I Need a Trust?
A trust is a valuable estate planning tool, but many don’t realize how their estate can benefit by creating a trust. First, let’s look at how a trust operates. A trust repositions assets to an artificial entity (the trust) to hold and manage, normally for the benefit of your heirs. Assets that can be titled to a trust include, but are certainly not limited to: Real estate; Stocks and bonds; Certificates of Deposit; Art and other valuable personal property; Businesses; and Life … [Read more...] about Why Would I Need a Trust?
