Nobody wants to lose control over assets that were accumulated during one’s lifetime. While many New Yorkers think trusts are only for those with significant wealth, they are serve a wide variety of purposes and can guarantee the distribution of assets precisely as planned. Furthermore, beneficiaries can receive trust funds when the creator of the trust intended them to receive them — at specific ages or upon predetermined achievements.
If a revocable trust is established, the creator will have control over the funds or assets during his or her lifetime. Conversely, if an irrevocable trust is set up, it will set post-death plans in stone, but without the opportunity to make changes to it while the trustor is still alive. Whichever option is chosen, the advantages could be significant.
One advantage that might be overlooked is that trusts can stop creditors from coming after the funds. Falling behind with payments, or other problems with creditors can happen to anybody. However, because a trust is a separate entity, any funds will be protected and safe from creditors while the trustor is alive, and also after death.
In the modern world, with all of its complexities, it is essential to make informed choices to suit different purposes. Gaining knowledge about the different types of trusts might help to determine which option would be the best in a particular scenario. An experienced New York estate planning attorney can explain the pros and cons of each of the many kinds of trusts. A lawyer can help determine which choice would best suit the unique plans and needs of each client, and then help in drafting the document and making sure that it is properly executed.
Source: tgdaily.com, “Common Benefits of Trusts for You and Your Beneficiaries“, Karthik Krishnan, March 1, 2018