Why Would I Create a New York Revocable Living Trust?
Many Brooklyn residents choose to create a revocable living trust as part of their overall estate plan. You might assume that trusts are only something that wealthy people do to “hide” their assets. But the reality is that trusts can offer anyone a flexible means of managing and disposing of their property both during their lifetime and after their deaths.
How Trusts Differ From Probate
One of the most common trusts used in New York City estate planning is a revocable living trust. We call this a “living” trust because it is made during the settlor’s lifetime. For example, you can create a revocable living trust and name yourself as the trustee. You would then continue to manage any property transferred into the trust during your lifetime. Essentially, the property in the trust remains under your control the same as if you did not have a trust.
So why bother creating the trust? The main reason is that once you die, any property owned in your sole name becomes part of your probate estate. This requires a formal legal proceeding before the Surrogate’s Court in New York to appoint a personal representative (executor), gather your assets, and distribute them either according to the terms of your will or New York intestacy law. This process can take several months, and often years, and can be quite expensive and cumbersome depending on the nature of your estate.
In contrast, any property in your revocable living trust at the time of your death remains in trust. A successor trustee named in your trust documents simply steps into your place and continues to administer the trust, generally without any court supervision or other formal legal process required. In most cases, the successor trustee will simply distribute the trust’s assets according to your trust’s instructions and then terminate the trust. Of course, you may wish to continue the trust for a period of time after you die; for instance, if you have young children you may want your successor trustee to continue managing the trust’s assets until your kids reach adulthood.
By keeping your property out of the probate process, a trust can also help maintain your family’s privacy. Wills are a matter of public record. Trusts are not (in most cases). Keep in mind that you still need a will to take care of some matters, such as nominating guardians for any minor children who may survive you.
Finally, because a living trust is revocable, you can alter, amend, or even abolish the trust at any point during your lifetime if your estate planning needs change. Once you die, however, a revocable living trust becomes irrevocable, which means your successor trustee is bound by its terms from that point forward.
Contact a Brooklyn Trusts Lawyer Today
Whether a trust is right for you and your family’s situation will depend on a number of factors. Our Brooklyn trusts lawyer will be happy to sit down with you and discuss your options. Contact Yeung & Associates, PLLC, today at 718-889-7568 to schedule a consultation.