Lawyers Who Draft Revocable & Irrevocable Trusts
New York City | Queens County | Nassau County NY
Limited-Term Trusts | Insurance Trusts | Special Needs Trust Spendthrift Trusts | Family Trusts
Trusts are an estate planning tool that can help protect your assets and minimize tax consequences. Typically, trusts are used as a method of conveying property. There are two main types of trusts: revocable trusts and irrevocable trusts.
A revocable trust is one where trust’s grantor retains control of the trust and can terminate or change the trust. An irrevocable trust is one where the grantor sets up the terms of the trust and thereafter has no further right to terminate or change the trust.
Medicaid Planning Trusts
Irrevocable trusts are used to qualify individuals to receive medicaid benefits. The irrevocable trust separates the control and benefit related to the ownership of the asset. Medicaid currently has a five year look back rule. Assets placed in irrevocable family trusts cannot be touched by medicaid after they have been in the trust for a period of five years.
Trusts Avoid Probate
Assets passed to beneficiaries through trusts avoid the probate process. Wills which are subject to probate are public documents. Trusts which are not subject to probate are private documents that do not have to be filed with a court. Assets received from trusts can be transferred in a simple manner after the death of the individual creating the trust. One of the reasons for creating a trust is avoiding the probate process. Trusts allow assets to pass quickly and efficiently to beneficiaries with reduced costs and legal fees.
Tax Benefits of Trusts
The tax consequences of establishing a trust differ depending on whether the trust is revocable or irrevocable. You should consult with an experienced estate planning attorney to determine which type of trust will best meet your needs.
Creating a Trust
To create a trust, a document is prepared that is referred to as a declaration of trust. After the trust is prepared, you transfer owener-ship of some or all of your property to the trust. A trustee is appointed in the declaration of trusts to deal with the disposition and control of your assets.
The trust and estate attorneys at the Law Offices of Schlissel DeCorpo have extensive experience helping clients utilize trusts as tools for accomplishing their estate planning goals. The average experience of the attorneys and staff in our estate planning department is over 45 years.
How the Proper Trust Can Help You
There are many types of trusts, and each type has its benefits and limitations. Our attorneys have extensive experience with all types of trusts and can explain your options to you, along with the benefits and limitations of each type of trust to determine what is right for you.
Some examples of different types of revocable and irrevocable trusts include:
- Limited-Term Trusts: A limited-term trust can be an effective tool for parents who have funds they don’t need until retirement. The parents can establish a well-funded trust that will pay for their children’s education and then return all remaining assets to the parents for retirement. This arrangement protects the trust money from creditors during the time it remains in the trust.
- Insurance Trusts: Insurance trusts can be used to hold insurance policies and avoid estate tax for property that exceeds the exemption amount.
- Special Needs Trust: A special needs trust or a supplemental needs trust can be established to provide benefits for a special needs child.
- Spendthrift Trusts: A spendthrift trust is created to benefit those who, due to drug addiction, alcohol problems or the inability to manage funds, are not qualified to handle assets.
- Family Trusts: This is also known as a Medicaid planning trust and involves moving assets out of an individuals name in order to qualify for Medicaid benefits (nursing home care).
Contact an Experienced New York City Revocable Trust & Irrevocable Trust Attorney
For additional information about retaining the services of an experienced attorney to assist you with trusts and estates matters in New York City, or to discuss your specific situation, please contact one of our lawyers for a free confidential consultation. We can be reached toll free at 1-800-344-6431, or in the five boroughs of New York City at 718-350-2802 and Nassau County at 516-561-6645. You also may fill out our intake form, and we will contact you.
When It Comes to Estate Planning, Experience Matters
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