Long Island Trusts Lawyers

Preserving Your Wealth for the Future

Many believe estate planning, including trusts, is only for the ultra-wealthy. When most people inventory their possessions, they are surprised to learn that their assets are much more valuable than they had supposed. Your hard-earned wealth took you a lifetime to create and should be protected in the best way possible. One of the most valuable tools in estate planning is to establish trusts of various types.

Trusts come with many benefits, including being able to dictate how and when your beneficiaries will receive your property. Certain types of trusts can help protect your wealth from creditors, minimize estate taxes, and offer more privacy for your family members after your death.

If you want to take advantage of this excellent estate planning tool, please reach out to a caring and capable trust lawyer like those at Davidov Law Group. Our trust attorneys can help you determine the best kind of trust for your situation and will carefully craft a legally sound document that gives the best protection for your assets. Contact our talented legal team right away for a consultation by calling (516) 253-1366.

What is a Trust Used for in Estate Planning?

Trusts offer a variety of uses, depending on your unique situation and your family’s needs. A trust is a legal structure that holds your assets in a special way. The assets may be accessed as described in the terms of the trust. A carefully crafted trust will allow the grantor, or creator, to disburse the funds at the time and in the way he or she desires. This may even include the grantor having access as a beneficiary in some cases!

Trusts may hold virtually any kind of asset the grantor deems valuable. This could include bank accounts, savings accounts, homes, land, rental properties, businesses, vehicles, and more. While trusts cannot directly own retirement accounts, they can often be named as the beneficiary of those accounts. The trust is created by the grantor and administered by the trustee, who is named in the document. This individual should be someone the grantor trusts implicitly, as the trustee will have a fiduciary duty to carry out the trust terms precisely as the grantor intended. The trust will also name beneficiaries, which may include a spouse, children, grandchildren, friends, charities, extended family members, and even pets.

For assistance creating a trust for your estate plan, please reach out to our attentive and dedicated legal team. We will be happy to explain the various types of trusts and help you determine which direction to proceed for you and your family.

How Can Having a Trust Help Me?

Trusts are a valuable tool in many estate plans. They give the creator a great deal of protection while they are alive and control over their wealth after they die.

Some advantages to having a trust in your estate plan are:

Gives greater privacy to your family members
Avoids the probate process
Allows you to dictate which family member will receive what assets, as well as how and when the funds will be disbursed
Allows you to assign a non-family member as an heir, including close friends, extended relatives, unmarried partners, and even pets

Contact the experienced trust attorneys at our law firm right away to learn more about how creating a trust can protect you and your family.

What Are Some Different Kinds of Trusts?

Trusts generally fall into two categories: revocable and irrevocable trusts. A revocable trust comes with greater flexibility and allows the grantor to adjust the terms of the trust during his or her lifetime. However, revocable trusts offer less tax relief than irrevocable trusts. In an irrevocable trust, the grantor will not be able to easily access the wealth or change the terms of the trust.

Some additional forms of trusts that are commonly used in New York are:

Testamentary trusts – These trusts are created by a will and provide for the distribution of the grantor’s estate.
Charitable trusts – Charitable trusts allow the grantor to include their preferred charity as a beneficiary of their wealth.
Living trusts – In a living trust, the grantor may also be a beneficiary. This means grantors could gain access to their wealth during their lifetime while benefiting from the tax benefits and protection from creditors that trusts offer.
Credit shelter trusts – Married couples use these trusts to reduce or even eliminate the tax burden on a surviving spouse.
Irrevocable life insurance trusts – Also known as an ILIT, the irrevocable life insurance trust may not be altered or terminated and grants the life insurance payout to the heirs of the grantor’s choice.
Special needs trusts – This type of trust allows a grantor to provide for a family member with special needs after the grantor’s death.
Spendthrift trusts – These trusts are helpful when leaving money for a beneficiary you feel will not be ready to handle a large sum of money at once. The trustee will disburse the funds according to your instructions, such as in smaller amounts over a longer period of time.

What Are the Duties of a Trustee in Trust Administration?

The trustee has a fiduciary duty to follow the trust’s instructions rather than distribute the trust’s assets according to the trustee’s preference. This person should be someone the grantor has confidence in, such as a close family member.

Some of the duties of a trustee are:

Filing with the proper authorities, such as the IRS or surrogate’s court
Alerting beneficiaries of the distribution of the trust
Distributing assets according to the grantor’s wishes
Ensuring each beneficiary meets the qualifications outlined in the trust

If you need help choosing a trustee, or if you have been named as trustee for someone else’s trust, you should seek legal counsel from knowledgeable trust attorneys. Contact Davidov Law Group right away for help with all of your estate planning needs.

Why Is It Important to Work With the Right Trust Lawyers?

The creation and distribution of your trust affect how well your assets are protected and whether your loved ones receive your wealth the way you wish. Not having a trust or estate plan in place could mean your valuables are subject to probate or intestacy, a long and costly process that could end in your assets going to people you would not have chosen.

With comprehensive estate legal services on Long Island, you can move forward with confidence, knowing your trust is legally sound and protects you and your family from creditors, unnecessary taxes, and probate. Your lawyers will be valuable allies as they help you prepare a trust that minimizes your family’s tax burden, implements a business succession plan, and allocates your possessions in the way you desire.

Should You Hire Our Trusts Attorneys?

Creating the right trust for your estate plan can be overwhelming, with the many types of trusts and ways they may be used. The best choice you can make is to consult with an experienced legal professional who will analyze your situation and listen carefully to your goals and needs.

At Davidov Law Group, we have personally witnessed the devastation that comes with not having an effective estate plan. We enjoy helping families prepare for the future by creating the perfect plan, including trusts. We have helped thousands of clients, and we realize that no family is alike. We promise to dedicate ourselves to building the right estate plan for you. We will take the time to explain your options so you can make the right choices for your family.

Call us today at (516) 253-1366 to schedule your assessment!

FAQs About Trusts in Estate Planning

We understand that estate planning can seem complex and overwhelming, and our experienced estate planning attorneys are here to help you through it. The establishment of trusts is one of the most effective estate planning tools. Read answers to our frequently asked questions about trusts in estate planning.

What Is a Trust in Simple Terms?

A trust is a legal agreement by which one person or entity (the trustee) holds and manages assets to benefit another person or persons (the beneficiaries). The creator of the trust, known as the grantor or settlor, transfers ownership of assets to the trust. The trustee is responsible for managing and distributing the trust’s assets according to the instructions provided in the trust document.

What Is the Main Difference Between a Trust and a Will?

While wills and trusts are both essential estate planning tools, they function differently. The differences are as follows:

A will outlines the distribution of your assets after you pass away. It must go through probate before it becomes effective.
A trust allows assets to be distributed directly to beneficiaries without going through probate. Without the need to go through probate, it will save time, reduce expenses, and help maintain your family’s privacy.

Can I Be Both the Grantor and the Trustee?

Yes, you can establish a revocable living trust and serve as both the grantor and the trustee during your lifetime. This allows you to maintain complete control over the assets in the trust. It allows you to access your wealth during your lifetime while benefiting from some tax advantages.

When you pass away, or if you should become incapacitated, a successor trustee will take over the management of the trust according to your directions. In the case of incapacity, this avoids needing a court-appointed guardian or conservator. A successor trustee of your choosing can fulfill your wishes regarding your assets without delay.

What Are the Tax Benefits of Trusts?

What Are the Tax Benefits of Trusts? When an irrevocable trust is established, the grantor relinquishes control over the trust assets and cannot revoke or modify the trust. Only certain types of irrevocable trusts remove the assets from the grantor’s taxable estate, potentially reducing tax liability. When this happens, the gift tax exemption is generally utilized at the time of funding. Although beneficiaries may pay income tax on trust income, these assets are generally not subject to estate tax upon the grantor’s death.

Charitable trusts can provide tax benefits for grantors while benefiting charitable organizations. While a charitable organization beneficiary is generally tax-exempt, if non-charitable individuals receive distributions from the trust, they will owe income tax. The income tax on these distributions is typically calculated using a four-tier system (ordinary income, capital gain, tax-exempt income, and corpus).

What Is the Fiduciary Duty of a Trustee?

The trustee is the person or entity responsible for managing and distributing the assets of a trust in accordance with the trust terms. A trustee owes a fiduciary duty to the trust and the beneficiaries. That duty includes using the utmost care in managing trust assets and considering the best interests of all current and future beneficiaries of the trust. The trustee has a duty of absolute loyalty to all beneficiaries, to put them first in all dealings, and to administer the trust solely for their benefit. The grantor of a trust dictates the terms of how the trust is managed and how the assets are distributed. Provided the terms are not illegal or unconscionable, the trustee has a duty to abide by them exactly as written unless given discretion to change or modify the terms.

How Do I Choose a Trustee?

Choosing a trustee is an important decision. Some people select a professional or corporate trustee to avoid potential conflicts of interest and ensure the trust is administered properly and according to the terms set out by the grantor. You may choose an individual, such as a family member, friend, or professional advisor, or an institution, such as a bank or trust company, as the trustee of a trust you establish. In making your choice, it is important to consider the following attributes:

Trustworthiness and reliability
Knowledge of financial matters
Ability to manage the trust responsibly
Willingness to serve

Can a Trust Be Modified or Revoked?

If you establish a revocable living trust, you can change or revoke it at any point during your lifetime, provided you are mentally competent. This gives you the flexibility to adapt the trust to changes in your circumstances or wishes. Once the trust becomes irrevocable – after your death or upon your incapacity – it cannot be changed without the consent of the beneficiaries.

Irrevocable trusts are designed never to be altered or revoked. Depending on the language in the trust and the specific circumstances, there could be methods to revoke or modify the trust in some cases. Possible strategies include using the powers of the trustee to decant the trust, transferring to a different trust, using the consent of the beneficiaries, grantor, and trustee to modify the trust, or allowing the grantor to remove and appoint new trustees if a change in management is desired.

Why Choose Us for Estate Planning and Trusts?

The creation of trusts can help determine how well your assets are protected and whether your loved ones receive them in accordance with your wishes. Your best course of action is to consult with experienced Long Island trust attorneys who will listen carefully to your goals and needs and accurately analyze your situation.

At Davidov Law Group, we have decades of experience helping families prepare for the future by crafting strategic estate plans, including trusts. We will take the time to explain your options and help you make the right choice for your family. Contact us today at (516) 253-1366.