If you live in New York and are currently navigating your way through the estate planning process, you may be sorting through your options in an effort to determine the best way to preserve your wealth for future generations. Chances are, you may be exploring the idea of placing some of your assets into a trust, but you may not have much experience in the area or a comprehensive understanding of exactly what trusts can do.
According to CNN, trusts, which are fiduciary arrangements that involve you placing certain assets under the care of a trustee, can prove tremendously helpful for those looking to leave as much as possible behind for their loved ones. While different types of trusts offer different advantages, many people choose to place assets into trusts because of the many money-saving benefits they can offer.
More specifically, placing assets in a trust can safeguard them in a number of different ways. Typically, creditors or anyone who files a lawsuit against you cannot touch any assets you have placed in a trust. Assets you place in a trust also do not count toward the overall value of your estate, meaning they can be a great way to reduce the amount of estate taxes your loved ones must pay after your passing.
Another major advantage of placing assets in a trust is that doing so allows you to distribute what you want to your beneficiaries without dealing with the probate process, which can prove complicated. Creating a trust also allows you to designate someone as trustee, and this person can manage your trust and make distributions on your behalf if you pass away or become incapacitated.
This information about the benefits of trusts is informative in nature and not a substitute for legal advice.