New York residents can protect their estate using a variety of financial tools. Although having a will can reduce probate costs and ensure the distribution of your property, it may not meet all your needs. We often help clients establish trusts as part of a comprehensive estate plan.
According to Fiduciary Trust International, a revocable trust, also known as a living will, ensures the proper management of your assets if you are no longer able to do so. The trustee you select can distribute principal and income to you, and in some cases your family, if you become incapacitated or when you die. There are several benefits of funding the trust before you pass away.
Skip probate court
Probate is the administrative proceeding where the court supervises the distribution of assets and payment of debts. The process is often time-consuming and expensive. Property placed in a revocable trust can bypass probate court, and your trustee can distribute assets per your instructions. Probate is also open to the public. By placing items in a trust, you can maintain privacy for your loved ones.
Avoid conservatorship
If you become incapacitated, family members may go to court, fighting for control of your finances. A revocable trust protects against this possibility. The trustee appointed by you can legally take control of your assets. Choose an individual or organization that you trust as your successor trustee. Communicating your wishes while still in good health and sound mind can avoid competency questions later in life.
Trusts and asset preservation tools help ensure the continuity of your estate. Taking time giving your plans thorough consideration can help you obtain eligibility for Medicaid benefits during your golden years and minimize the tax bill for your family after your passing.