Many people in the New York City area rent their primary residence. However, for those who own their homes, these parcels of real estate are often among the largest single-item assets in their portfolios. This, combined with the fact that property values are high in the area, has the potential to cause a considerable amount of loss in the probate process.
The way most people avoid this loss is by using trusts. As mentioned on CNN, this type of ownership has the potential to avoid the probate process entirely . Trusts are legally distant from the person who establishes them, and many are not dissolved upon that person’s death. Rather, those who use these financial tools typically plan ahead so that certain heirs gain access to the funds and assets held within.
Trusts seem more complex on paper than they often are in reality. The most commonly used trusts are rather simple in terms of function. They are official stores of wealth that one may transfer assets to, modify the terms of and withdraw from if one has certain prescribed funding, modification and beneficiary privileges. Per FindLaw: People often name themselves as beneficiaries of their trusts, a title they schedule to pass to their children under certain conditions.
The FindLaw resource also mentions the fact that those who felt burdened by trust paperwork in the past may find the processes surrounding funding and deed paperwork more streamlined now. Even so, performing these tasks is often not as straightforward as it might be for other types of simple ownership structures, such as brokerage or banking accounts. However, there are many ways that an estate planner might address this complexity, potentially allowing a higher percentage of an estate to weather probate without diminishing.