Individuals in New York who are planning for the distribution of their property after they die may have heard of a revocable trust but be unfamiliar with what is involved in such a document. Another name for a revocable trust is a living trust, and as its name implies, it is created and takes effect while the grantor is still alive. The terms of an irrevocable living trust cannot be changed while those of a revocable trust can.
New York basketball fans may have heard about a former University of North Carolina basketball coach who left $200 to each of the approximately 180 players he coached during his career. The coach used a revocable trust to distribute the funds.
When you are preparing your estate plan, you may want to consider utilizing trusts to help you meet a variety of different types of financial and family goals. If you plan and set up trusts appropriately, you can use them to directly pass your assets to your heirs while bypassing the expense and litigation that can be involved with the probate process.
Individuals in New York who are estate planning should keep in mind that there are a number of common errors that people make with their wills, trusts and other documents and accounts. One of these errors is making an estate plan and failing to return to it for revisions. Such changes as children, marriages, deaths and divorces may result in a needed update, so estate plans should be periodically reviewed.
While some people with very simple estates may not need to set up a trust, trusts can be a useful tool for many different people in New York who are in the process of estate planning. People who have a net worth of $100,000 and who have a sizable portion of assets held in real estate, art or business may benefit by using a trust.
Some people in New York might wish to set up a charitable trust so they can donate assets and income earned through it to various designated charities. It is important when people are wanting to set up a trust for this function that they do it in such a way as to avoid potential tax implications.
New Yorkers who want to ensure their possessions are managed properly may rely on wills and similar documents, but living trusts offer an alternative. These structures are notable in that their grantors can name themselves trustees and thus manage the assets they want to safeguard. In addition, other trusts, such as spendthrift trusts, can be included in a living trust so that beneficiaries are explicitly looked after.
Robin Williams fans in New York might be interested to know that his family could be spared the ordeal of going through probate for certain assets. When someone leaves a will, probate courts verify the document and still make decisions regarding the execution of the deceased person's estate. Court records can reveal specifics of a person's estate that families might like to keep private. Since Williams set up at least one revocable trust, probate might not affect certain aspects of the late actor's estate plan.
Some New York residents may find that establishing a living trust is an attractive option for guiding asset disbursement upon death while avoiding a potentially frustrating probate process. For an individual considering a revocable or irrevocable trust, understanding some basic points regarding these trusts can help an individual to approach the subject more gracefully with a financial advisor or attorney.
Not everyone believes that having a revocable living trust is necessary. After all, the federal estate tax exemption for individuals is $5.34 million and $10.68 million for married couples. However, the purpose of such an estate planning tool concerns more than just saving upon estate taxes. A revocable living trust can allow distributions to heirs without the assets having to go through probate and can thus be an effective means for distribution of assets.