Top Reasons to Establish a Living Trust in New York

A living trust is an important tool that can help people in New York manage their assets and plan for the future. When you create a living trust, you are taking steps to ensure that your property, money, and other belongings are handled in a way that benefits you and your loved ones. Many people are unsure about whether they should create a living trust, but there are several good reasons why it is worth considering. A living trust provides peace of mind and can help you avoid problems down the road. Understanding how a living trust works and how it can benefit you is a smart move if you want to protect your family and your assets. For legal assistance, Cole, Sorrentino, Hurley, Hewner & Gambino, P.C. , can provide the guidance you need to navigate these complex legal issues.

Richard H. Cole
Partner

Thomas F. Hewner
Partner

Donna L. Haslinger
Partner

Vivian P. Roche'
Partner

Keith R. Rosso
Attorney

Tasha D. Frazie
Attorney

One of the main reasons to establish a living trust is to ensure that your assets are distributed according to your wishes after you pass away. With a living trust, you can specify exactly who will receive your property, when they will receive it, and how it will be used. This can be very helpful if you have certain preferences for how your assets are handled. Unlike a will, a living trust allows for the immediate transfer of assets after your death, without the need to go through the probate process. Probate can be long, expensive, and stressful for your loved ones. A living trust can simplify things, making it easier for your family to receive the benefits you intended for them.

Another key reason to set up a living trust in New York is to maintain control over your assets during your lifetime. A living trust is often called a revocable trust because it can be changed or canceled at any time while you are alive. This gives you the flexibility to manage your finances as your needs change. You remain the trustee, meaning that you control your property, just as you did before creating the trust. If you ever want to make changes, such as adding or removing assets or changing the beneficiaries, you can easily do so. This flexibility is a major advantage, allowing you to adapt to different circumstances and make sure that your trust always reflects your current wishes.

One often overlooked benefit of a living trust is the ability to avoid court interference in case of incapacity. If you become ill or unable to manage your own affairs due to an accident or age-related issues, the person you name as your successor trustee will be able to step in and manage your trust for you. This ensures that your financial matters are handled smoothly, without the need for a court to appoint a guardian or conservator. Without a living trust, your family might need to go through legal proceedings to gain control of your assets, which can be time-consuming and emotionally difficult. A living trust provides a seamless transition and avoids these complications.

Privacy is another significant reason people choose to create a living trust. Unlike a will, which becomes public record during probate, a living trust remains private. This means that the details of your assets, debts, and beneficiaries are not made available to the public. For those who value discretion, this privacy can be an important factor in deciding to establish a trust. Your family’s affairs will be kept confidential, and there will be no need to disclose personal financial information during probate. This can help protect your loved ones from unwanted attention and ensure that your estate is handled quietly and efficiently.

For families with young children or dependents, a living trust is an excellent way to provide long-term financial security. You can specify how the funds in the trust are to be used for the care of your children or other dependents, ensuring that their needs are met even if something happens to you. For instance, you can set up guidelines for how much money will be used for education, healthcare, and daily living expenses. A living trust can also provide instructions for when your children will receive the remaining assets once they reach a certain age. This allows you to protect your children’s future while making sure that the money is used wisely.

Tax benefits are another important reason to consider establishing a living trust in New York. While a living trust will not directly reduce estate taxes, it can be structured in a way that minimizes the tax burden on your heirs. For example, certain types of trusts can help shelter assets from estate taxes, allowing more of your wealth to be passed on to your beneficiaries. Working with a knowledgeable attorney can help you explore these options and structure your trust in the most tax-efficient manner possible. This is especially important if you have a large estate or if you are concerned about how taxes will impact the amount your heirs will receive.

Related Videos

A living trust can also be a helpful tool for managing out-of-state property. If you own real estate in multiple states, your family may need to go through separate probate proceedings in each state after your death. This can be complicated, expensive, and time-consuming. By including your out-of-state property in a living trust, you can avoid this problem and ensure that all of your property is handled according to your wishes, no matter where it is located. This can be especially beneficial for people who own vacation homes or investment properties outside of New York.

In some cases, a living trust can also help prevent disputes among family members. When the terms of your trust are clearly laid out, it can reduce the likelihood of disagreements over how your assets should be distributed. This can help keep your family relationships intact and avoid the emotional and financial costs of legal battles. By appointing a trustworthy and impartial successor trustee, you can further reduce the risk of conflicts. The trustee will have a legal duty to follow the instructions in your trust, ensuring that your wishes are carried out in a fair and equitable manner.

A living trust can help you leave a lasting legacy for your family. By creating a trust, you are not only providing for your loved ones but also ensuring that your values and priorities are reflected in how your assets are used. For example, you might choose to set up a charitable trust within your living trust to support causes that are important to you. This can be a meaningful way to give back to your community and leave a positive impact on the world, even after you are gone. A living trust gives you the opportunity to shape your legacy and make sure that your life’s work continues to benefit others.

Creating a living trust is a thoughtful and responsible step that can provide peace of mind for you and your family. It offers flexibility, control, and privacy, while also helping you avoid the potential pitfalls of probate and incapacity. Whether you are looking to protect your assets, care for your loved ones, or leave a lasting legacy, a living trust can be an essential part of your estate plan. The benefits of a living trust are clear, and it is never too early to start planning for the future.

If you are considering establishing a living trust in New York, it is important to seek legal advice to ensure that your trust is set up correctly and in accordance with state laws. At Cole, Sorrentino, Hurley, Hewner & Gambino, P.C., we have the experience and knowledge to guide you through the process of creating a living trust that meets your unique needs and goals. Contact us today to learn more about how we can help you protect your assets and provide for your loved ones.