Benefits of a Revocable Living Trust
Trusts are excellent tax planning vehicles. When the settlor dies, the corpus (property in the trust) passes directly to the beneficiaries. There is no need to go to probate court. On a related note, the lack of a court proceeding keeps the assets in a trust completely private.
Furthermore, a revocable living trust protects your assets. Since the trust owns this property, as opposed to the individual, creditors cannot seize it to pay debts. Indeed, in most cases, creditors probably would not even know the trust exists.
Trusts are also quite flexible. At the Dilendorf Law Firm, through our secure online portal, we help families use living trusts as advanced estate planning vehicles. For example, inter vivos trusts often accompany pour-over wills. Any assets you have when you die pass to the trust instead of through the will. So, your heirs might bypass the probate process altogether. That means they avoid additional costs and unwanted scrutiny.
In most cases, living trusts significantly reduce estate taxes, but they might not eliminate them altogether. The estate limits are much higher for trusts. The state estate tax applies if the value exceeds $2.06 million, and federal taxes begin at $5 million.
A QTIP (Qualified Terminable Interest Property) trust might provide additional tax benefits. This trust takes advantage of the marital deduction for interspousal transfers and also limits the inheriting spouse’s ownership rights. So, if a couple places their home into a QTIP trust and Husband dies first, Wife can live in the house for the rest of her life, but she cannot sell or otherwise dispose of the house.
A living trust does not completely protect your assets from creditors upon your death. But it does make these assets harder to find.
Living trusts can be completed online under the guidance of an attorney. For a confidential consultation with an experienced estate planning lawyer in New York, contact Dilendorf Law Firm.
New York Living Trust Attorneys
Dilendorf Law Firm
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At the Dilendorf Law Firm, we make it as easy as possible for busy professionals to create a comprehensive, legally-enforceable estate plan. These plans often include a living trust. In addition to control of the property, the settlor, who is normally also the trustee, maintains control of the trust.