What is a Living Trust?
What is a Living Trust?
A living trust is a legal document that allows individuals to place their assets into a trust during their lifetime, with clear instructions on how those assets should be managed and distributed after their passing. Unlike a will, a living trust can help avoid probate, providing a faster and more private way to transfer assets to beneficiaries. At Law Offices of Benjamin B. Neschis, P.C., we assist New York City residents in establishing living trusts tailored to their specific needs.
How Does a Living Trust Work?
A living trust is created by a grantor, the person who establishes the trust and transfers their assets into it. A trustee is appointed to manage the trust, and they are responsible for carrying out the instructions outlined in the trust agreement. In many cases, the grantor serves as the trustee during their lifetime, maintaining full control over their assets. Upon the grantor’s passing, a successor trustee takes over to ensure the assets are distributed according to the trust’s terms.
Benefits of a Living Trust
A living trust offers several advantages, including:
- Avoiding Probate: Unlike a will, which must go through the probate court process, a living trust allows assets to be transferred directly to beneficiaries. This can save time and money while maintaining privacy.
- Maintaining Control: A revocable living trust enables the grantor to modify or revoke the trust during their lifetime, providing flexibility in managing assets.
- Planning for Incapacity: If the grantor becomes incapacitated, the successor trustee can manage the trust’s assets without court intervention.
- Privacy Protection: Probate proceedings are public records, whereas a living trust keeps financial matters private.
Do You Need a Living Trust?
While a living trust is beneficial for many individuals, it may not be necessary for everyone. Factors such as the complexity of assets, family dynamics, and estate planning goals should be considered. Our team at Law Offices of Benjamin B. Neschis, P.C. can help determine whether a living trust is the right choice for your situation.
Get Legal Assistance for Your Estate Planning Needs
Creating a living trust requires careful planning to ensure it aligns with your long-term goals. If you are in New York City and need guidance on setting up a living trust, our firm is here to help. Contact Law Offices of Benjamin B. Neschis, P.C. to discuss your estate planning options today.
