Types of Trusts
While there are numerous types of trusts, they fall into three categories.
Revocable Trusts
Many New York residents choose to add revocable trusts to their estate plans. You can name yourself as the trustee and manage the property inside the trust while you’re of sound mind. You’ll also list a successor trustee to take over if you become incapacitated.
You can modify or revoke the trust at any point as long as you are of sound mind. As long as it’s active, though, the trustee will distribute property inside of it to beneficiaries based on your guidelines.
Revocable trusts do have some limitations. Since you have full control over the property, it’s still technically a part of your estate. That means creditors can potentially seize it with a court order, and the property will still count toward your assets when trying to qualify for Medicaid.
Irrevocable Trusts for Asset Protection & Medicaid Planning
If you want to protect your assets or remove property from your estate to qualify for Medicaid, an irrevocable trust might be the right solution. Generally, you cannot revoke, modify, or serve as the trustee if you choose an irrevocable trust. However, you can receive income from the assets inside of it.
In most cases, creditors cannot touch the assets inside an irrevocable trust. Also, the property won’t be included in your estate’s value when applying for Medicaid, as long as you didn’t transfer it during the look-back period.
Special Needs Trusts
If you have a disabled child, you need to ensure they have ample financial resources. At the same time, you do not want your son or daughter to lose access to government programs. Your trusts lawyer can help you create a special needs trust for your child. This is also referred to as a supplemental needs trust. It allows you to provide for your child without impacting their ability to receive benefits. These trusts have numerous rules you must follow to avoid losing benefits, so consult with our firm first. Then we can help you create and fund the trust while staying within the law.
Trusts for Pets
Your pets are like family, and you want to ensure they’re cared for after you’re gone. With that in mind, you might consider leaving money for your pet’s care in your last will and testament. However, your will could be held up in probate, meaning the caregiver won’t have the resources necessary. Fortunately, you can ensure your animals are cared for by setting up a trust for your pets.
Benefits of Having a Trust in Long Island
- Avoiding Probate: Establishing a trust can help Long Island residents bypass the probate process, which can be time-consuming and costly. By transferring assets directly to beneficiaries, trusts ensure a smoother and faster distribution of the estate.
- Maintaining Privacy: Unlike wills, which become public record during probate, trusts remain private. This ensures that the details of your estate, including the distribution of assets, remain confidential, protecting your family’s privacy.
- Asset Protection: Trusts can safeguard assets from creditors and lawsuits, providing a layer of protection that is especially beneficial in Long Island, where property values and potential liabilities may be significant.
- Managing Estate Taxes: Trusts can be structured to minimize estate taxes, helping more of your assets pass to your beneficiaries. This is particularly important in states like New York, where estate taxes can be a notable concern.
- Providing for Minor Children or Special Needs Beneficiaries: Trusts allow you to designate funds for minor children or beneficiaries with special needs, ensuring they are cared for according to your wishes. Trusts can specify the conditions under which funds are released, providing ongoing management and support.
- Flexibility and Control: Trusts offer flexibility in managing your estate, allowing you to make changes as your circumstances evolve. This control can be crucial for Long Island residents who wish to adapt their estate plans to changing family dynamics or financial situations.
- Planning for Incapacity: A trust can provide for the management of your assets if you become incapacitated, ensuring that your financial affairs are handled according to your instructions without court intervention.
- Tailored Estate Planning: Trusts can be customized to fit the specific needs of Long Island residents, considering local legal nuances and estate planning practices. This adaptability makes trusts a versatile tool in comprehensive estate planning.
Establishing a trust can offer significant benefits to Long Island residents, providing peace of mind and ensuring that your estate is managed and distributed according to your wishes.
How Our Trusts Lawyer Can Help You
We are here to help you by:
- Personalized Consultation: We start with a thorough consultation to understand your specific financial goals, family dynamics, and long-term objectives. This allows us to recommend the most appropriate type of trust for your situation.
- Drafting and Execution: We meticulously draft trust documents to ensure they comply with all legal requirements and accurately reflect your wishes. We handle all aspects of trust execution, from funding the trust to transferring assets, ensuring a seamless and efficient process.
- Ongoing Trust Administration: Trust administration can be complex and time-consuming. We provide ongoing support to trustees, helping them manage trust assets, comply with fiduciary duties, and navigate any legal or financial challenges that could arise.
- Modifications and Terminations: Life circumstances and goals can change over time. If you need to modify or terminate an existing trust, we are equipped to assist with these adjustments, ensuring your estate plan remains aligned with your current needs and wishes.
- Dispute Resolution: Trust disputes can be emotionally and financially draining. We are adept at resolving conflicts through negotiation, mediation, or litigation, protecting your interests, and preserving family harmony whenever possible.
- Education and Guidance: We believe in empowering our clients with knowledge. We take the time to explain intricate legal concepts and provide clear guidance on your rights and responsibilities as a trustor, trustee, or beneficiary.
Contact Our Trusts Lawyer in Long Island Today
Our Long Island trusts attorneys at SGF Law are here to help you navigate the complexities of trust law and achieve your estate planning goals. Whether you want to establish a new trust, administer an existing one, or resolve a trust-related dispute, our dedicated team is ready to assist you every step. Contact us today to schedule a consultation and learn more about how we can help you protect your assets, support your loved ones, and ensure your legacy. We are committed to providing the highest level of service and expertise, making trust planning a smooth and stress-free experience.
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Contact with our Long Island trusts attorney by calling (631) 519-9831. We are committed to providing our clients with everything they need for a comprehensive estate plan that suits their unique situation.
