What is the Difference Between a Trust and a Will in New York?
What is the Difference Between a Trust and a Will in New York?
Estate planning is essential for managing your legacy, and understanding the roles of trusts and wills is a fundamental part of this process. In New York, both documents help distribute assets, but they serve different functions and come with unique advantages.
Key Features of a Will
A will is a legal document that specifies how your assets will be distributed after death. It can also designate guardians for minor children and name an executor to oversee the estate. However, wills must go through probate, a court-supervised process that can be lengthy and become part of public record. Probate can delay the transfer of assets and may incur additional costs.
Benefits of a Trust
A trust is an arrangement where a trustee holds and manages assets on behalf of beneficiaries. Trusts come in many forms, such as revocable or irrevocable trusts, and can provide greater control over how and when assets are distributed. Unlike a will, a trust avoids the probate process, allowing for a more private and quicker transfer of assets. Trusts can also be activated during your lifetime, offering protection and management of assets if you become incapacitated.
Key Differences Between a Will and a Trust
- Probate: Wills go through probate, while trusts do not.
- Privacy: Wills become public records; trusts remain private.
- Activation: Wills only take effect after death, while trusts can be used during your lifetime.
- Asset Control: Trusts allow more detailed planning for asset distribution, including conditions for disbursement.
Choosing the Right Option
The decision between a will and a trust depends on your specific goals. Wills are simpler and typically less expensive to create but may lead to higher costs during probate. Trusts offer benefits like avoiding probate and greater control but come with higher initial setup costs and complexity.
How We Can Help
At Law Offices of Benjamin B. Neschis, P.C., we help New York City residents craft comprehensive estate plans tailored to their needs. Whether you’re considering a will, trust, or a combination of both, our team provides expert guidance to secure your legacy and ensure peace of mind for you and your family.
