For people with estates that are valued over $5 million, there are a number of advantages to setting up a trust. The top two advantages are avoiding probate and avoiding estate taxes. Probate is a lengthy legal process that can cost an estate a great deal of money. It can also hold up the dissemination of assets via a last will and testament. In addition, estate taxes can be rather sizable on large estates, and avoiding this is better for the family members that will benefit from the distribution of assets.
There are many advantages of a trust, but it is important to understand that to properly set up and maintain a trust, an estate owner will need to work closely with a Trusts Lawyer Nassau County NY. These sorts of trusts can be rather complicated and sometimes expensive to set up and maintain, which is why having an attorney helps in this respect.
How a Trust Works
While there are many facets of a trust, setting up the trust essentially allows an estate owner to transfer their assets to a trustee. This means that, when a person passes away, they basically have no estate that belongs to them, meaning probate is avoided and there is nothing for the government to levy estate taxes on. Click here for more information.
Appointing a Trustee
Some people are concerned because transferring assets to a trustee takes away a great deal of discretion with their estate and any fiduciary decisions are out of their hands. For this reason, many people named themselves as a trustee or a co-trustee along with a family member or an attorney. This allows them to control the fiduciary trajectory of their estate so everything is taken care of until the time an individual passes away and their estate is disseminated.
It’s not unusual for a person to have an estate that could technically be valued at over $5 million. If this is the case for you, it may be wise to think about establishing a trust. To do this, consultations with a Trusts Lawyer Nassau County NY are essential. Fortunately, the legal services found at The Law Offices of Peter Morra can help you if you’re considering setting up and managing a trust.