A trust is an estate planning document in which a person places assets (e.g., real estate, investments, bank accounts, etc.) in the control of a Trustee who will manage said assets for the benefit of the Trust beneficiary(ies). The Trust sets forth the terms of how the assets are managed and distributed during the creator’s lifetime and upon the creator’s death. There are several types of trusts, which are used for different purposes. Our law firm can advise you on creating the following types of trusts based on your individualized circumstances, needs and goals: Revocable Trust – A revocable trust holds assets during your lifetime and provides for the distribution of assets upon your death without the need for a probate proceeding in Surrogate’s Court. You can manage, utilize and maintain control of your assets while you are alive. This trust permits you to change or revoke the trust at any point in your lifetime without anyone else’s permission. Irrevocable Trust – An irrevocable trust holds assets, but you do not maintain full control over the trust assets like you do with a revocable trust. You cannot be the person in charge of managing the assets, and the assets cannot be directly utilized for your benefit during your lifetime. Depending on the terms of trust, it may or may not be possible to amend or terminate the trust. The irrevocable trust is often designed to remove assets from your estate for estate tax purposes and/or to protect your assets from the costs of long-term care for Medicaid planning. Like the revocable trust, an irrevocable trust also avoids probate upon your death. Testamentary Trust – A testamentary trust is a trust that becomes active only upon your death and is built into your Last Will and Testament, Revocable Trust and/or Irrevocable Trust. A testamentary trust is used to manage and distribute assets for your beneficiaries according to the terms you have set forth. This type of trust is often used for minor beneficiaries, disabled beneficiaries and/or beneficiaries who have issues managing money. Additionally, the testamentary trust can be highly useful for passing down generational wealth to the next generations. Supplemental Needs Trust – A supplemental needs trust hold assets to support a loved one with a disability or special needs. This type of trust allows the Trustee of the trust to use the trust assets for the benefit of the disabled beneficiary without interfering with his or her government benefits or entitlements that he or she is receiving or may be entitled to receive. You can create and fund this type of trust during your lifetime, or you can establish a testamentary supplemental needs trust upon your death. Our attorneys can provide a more detailed explanation about trusts and estate planning options in Suffolk County, Nassau County and the surrounding metro New York area.

Trusts, Estate Administration

Frequently Asked Questions About Trust Planning and Estate Administration

A solid and comprehensive estate plan can protect your assets that you have worked hard for and ensure a smooth transition to the next generation. A trust is often an essential part of that plan.

For over 25 years, the law firm of Futterman Lanza, LLP, has assisted clients with estate planning and elder law planning in the metro New York area. Our attorneys can help you establish a trust and preserve your assets, whether it is protecting your assets from a probate proceeding, estate taxes, and/or the extraordinary costs of long-term care. The following answers to frequently asked questions about trust planning and estate administration can help get you started. If you are interested in learning more, please contact our law firm today to schedule a complimentary consultation.

What Is a Trust?

A trust is an estate planning document in which a person places assets (e.g., real estate, investments, bank accounts, etc.) in the control of a Trustee who will manage said assets for the benefit of the Trust beneficiary(ies). The Trust sets forth the terms of how the assets are managed and distributed during the creator’s lifetime and upon the creator’s death. There are several types of trusts, which are used for different purposes.

Our law firm can advise you on creating the following types of trusts based on your individualized circumstances, needs and goals:

Revocable Trust – A revocable trust holds assets during your lifetime and provides for the distribution of assets upon your death without the need for a probate proceeding in Surrogate’s Court. You can manage, utilize and maintain control of your assets while you are alive. This trust permits you to change or revoke the trust at any point in your lifetime without anyone else’s permission.

Irrevocable Trust – An irrevocable trust holds assets, but you do not maintain full control over the trust assets like you do with a revocable trust. You cannot be the person in charge of managing the assets, and the assets cannot be directly utilized for your benefit during your lifetime. Depending on the terms of trust, it may or may not be possible to amend or terminate the trust. The irrevocable trust is often designed to remove assets from your estate for estate tax purposes and/or to protect your assets from the costs of long-term care for Medicaid planning. Like the revocable trust, an irrevocable trust also avoids probate upon your death.

Testamentary Trust – A testamentary trust is a trust that becomes active only upon your death and is built into your Last Will and Testament, Revocable Trust and/or Irrevocable Trust. A testamentary trust is used to manage and distribute assets for your beneficiaries according to the terms you have set forth. This type of trust is often used for minor beneficiaries, disabled beneficiaries and/or beneficiaries who have issues managing money. Additionally, the testamentary trust can be highly useful for passing down generational wealth to the next generations.
Supplemental Needs Trust – A supplemental needs trust hold assets to support a loved one with a disability or special needs. This type of trust allows the Trustee of the trust to use the trust assets for the benefit of the disabled beneficiary without interfering with his or her government benefits or entitlements that he or she is receiving or may be entitled to receive. You can create and fund this type of trust during your lifetime, or you can establish a testamentary supplemental needs trust upon your death.

Our attorneys can provide a more detailed explanation about trusts and estate planning options in Suffolk County, Nassau County and the surrounding metro New York area.

What Are the Advantages of Establishing a Trust?

The following is a brief overview of the main advantages to establishing a trust:

Avoids probate upon your death – Probate is a court-supervised legal process required to access and distribute assets that pass under your Last Will and Testament. Probate can be time-consuming, costly, and stressful for your Executor and beneficiaries under your Will. Any assets held by a trust will avoid a probate proceeding and simplify the administration of your estate for your loved ones. A trust can ensure the smooth and efficient transfer of your assets.
Protects your privacy – A trust is private legal document which keeps your personal financial information and the terms of your trust out of the public record. To the contrary, if your assets pass through probate, then the probate proceeding becomes a matter of public record.
Offers estate tax planning and/or “Medicaid” asset protection benefits – Depending on the type of trust that you create, the trust can reduce or minimize estate tax consequences for your beneficiaries and/or protect your assets from the extraordinary costs of long-term care (e.g., nursing home care).
Protects beneficiaries and provides control over the distribution of assets – With a trust, you can determine not only who gets what, but also when and how. For example, you can stipulate that your children cannot directly inherit assets until they reach a certain age or can only utilize the assets for a particular purpose. Additionally, you can choose who will be charge of managing the beneficiary’s inheritance.
Provides for the management of assets in the event of your incapacity or death – While you are alive and competent, you can choose the person to be in charge of managing your trust assets if an unfortunate and unforeseen circumstance arises.

A trust is often a more practical and effective way for you to pass your hard-earned assets to your loved ones. Let our elder law and estate planning attorneys tell you more about how a trust could benefit you based on your circumstances.

How Does a Trust Avoid Probate?

Upon your death, the designated Trustee of the trust simply distributes the trust assets to the trust beneficiaries in accordance with the specific terms you outlined in your trust, without going through a court-supervised probate proceeding. A probate proceeding is only necessary when assets are titled in an individual’s personal name alone and do not contain beneficiary designations. Once assets are placed in a trust, they are no longer personally owned by you.

Should I Use a Trust Instead of a Will?

For many people on and around Long island, a comprehensive estate plan will include a trust and a Last Will and Testament. A Last Will and Testament is necessary even if you have a trust established because the Will governs assets that may have been unintentionally left out of a trust. Without a Will, the distribution of those assets will be governed by New York State’s intestacy laws.

It is also essential to have a Will if you have minor children because your Will is the legal document in which you designate the legal guardians for your minor children in the event of your death. The designation of legal guardians cannot be done within trust.

Our law firm can present you with a full range of estate planning options and help you determine what is right for you and your family.

What Is Involved in Setting Up a Trust?

To establish a trust and ensure its proper administration, you will need to do the following:

Select the type of trust – Choose the trust which is best suited to achieve your goals. Depending on your situation, you may have a combination of trusts involved in your estate plan.

Choose a Trustee – The trustee should be someone you trust and is capable of managing, or overseeing the management, of the trust assets. You could choose a family member or friend. The Trustee may also be a trust beneficiary. If necessary, you could also choose an impartial corporate trustee if you have no one else to designate in this important fiduciary position.

Identify your assets – You will need to evaluate your overall estate and determine which assets you want to place in the trust. You should also consider the possible tax consequences when making such a determination.

Choose your trust beneficiaries – You will need to determine who will benefit from the trust assets during your lifetime and upon your death. You will also have to determine how the trust assets should be divided among the beneficiaries.

Create the trust document – You will need to establish legally binding documents that clearly outline all of your directions for the trust and the distribution of your property.

Fund the trust – You will need to transfer assets from your name into the name of your trust in order for the trust to be fully effective. This often requires you to change the title to the assets you are placing into the trust. For example, if you are placing your home into a trust, a new real property deed will need to be prepared, or if you are placing bank accounts into a trust, you must change the ownership of the bank accounts to the name of the trust.

What Happens If I Do Not Have a Will or Trust?

If you do not have either a will or a trust when you pass, then your assets may be distributed in accordance with New York State’s intestacy laws. This means if you have any assets in your individual name alone when you pass away without any beneficiaries named, then those assets would be distributed according to the terms of New York state law rather than your own wishes. This process would require a court-supervised proceeding similar to a probate proceeding. Furthermore, New York State law will also govern who has priority to petition the Court to serve as the administrator of your estate. Clearly, this could result in unforeseen and unintended consequences.

Our law firm can structure a tailored estate plan designed to ensure your wishes are followed and not replaced by New York State’s default estate laws.

Why Should I Work with an Estate Planning Attorney?

At Futterman Lanza, LLP, our attorneys create individualized estate plans specifically tailored to meet each client’s unique needs and long-term objectives. Our estate planning lawyers in the metro New York area can assist you with the following tasks:

Help you determine the best type of trust for your needs
Prepare and execute the proper legal documentation
Review assets and determine what assets should be placed into the trust
Assist with the paperwork necessary to transfer assets into the trust so that the trust is properly funded

We care about helping you preserve your assets for your family’s future and achieve your ultimate planning goals. We also offer other planning services, such as elder care planning, that may work in conjunction with your trust planning and estate administration needs.

Contact Futterman Lanza, LLP, for Help with Your Trust Planning and Estate Administration Needs

Futterman Lanza, LLP, can help you with creating a trust, drafting a Last Will and Testament, and making any other preparations needed to protect your assets for now and in the future.

Our law firm has earned a reputation for its client-centered approach, providing compassionate, respectful, and professional representation. We primarily serve clients throughout Suffolk County, Nassau County and the metro New York area from our offices in Smithtown, Melville, and Garden City. Contact our team today to get started with a complimentary consultation.

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