If you are considering gifting or transferring assets, there are distinct differences between an outright transfer and a transfer into a trust that is important to understand.
1. When prepared correctly, a transfer to a trust provides:
•Asset protection; and
•A step up in tax basis.
2. An outright transfer to children or others may incur:
•A carryover tax basis.
When considering an outright transfer to children, it is important to consider the following:
•What happens if children divorce?
•What happens if the child predeceases you?
•What happens if your child has outstanding creditors?
An experienced Elder Law attorney can explain the benefits and drawbacks so that you can make an informed decision about what is best for you and your family.
Please contact us directly with your questions or comments.
Vivian Garrastegui, Esq.
SCHNEIDER, GARRASTEGUI & FEDELE PLLC
135 Pinelawn Road
Suite 110 South
Melville, NY 11747
(P) (631) 519-9831