How to Set Up a Living Trust in New York

As people age, they become concerned about what will happen to their assets after they pass away. Most people might think of a will, but another option is a living trust. Living trusts in New York have some unique considerations, but with a competent partner like Ettinger Law Firm, the process is simpler.

What is a Living Trust?

A living trust holds all of your assets and is often easier to manage than a will. While you still need a will, a living trust maintains control over your assets both during your lifetime and after your passing. There are two types of living trusts.

Revocable Trust

A revocable trust gives you complete control to change or cancel your assets and beneficiaries at any time. The assets are in a trust, but you can still use and modify them as needed. It provides a lot of flexibility as laws and your own assets shift.

Irrevocable Trust

An irrevocable trust is fairly concrete once it is set up. Distributions and changes are restricted unless all individuals named sign off on them. However, you will pay less in taxes because the trust itself is taxed.

How to Set Up a Living Trust

You can set up a living trust by yourself or with a trusted law firm. Doing it on your own can be confusing and prone to mistakes if you are unfamiliar with the law. Consider working with a reputable law firm to ensure you follow these steps correctly.

1. Pick a Trust

Select which type of trust you would like to set up. Beyond a revocable or irrevocable trust, you can also choose a single or joint one. Single living trusts are suitable for individuals who wish to manage their own assets. A joint living trust is typically established with a spouse and grants them control after your death, which may be a good idea if you share an asset, such as a house or a car.

2. Consider Assets

Consider the property and assets you want to include in the trust. Some examples include stocks, artwork, real estate and family heirlooms. You must find the paperwork for items, like deeds for houses and vehicles, to include.

3. Choose a Trustee

Choose a trustee — this can be yourself, a loved one or a dependable individual. You will also need to select a successor trustee for after you pass. If you are transferring your assets to a minor, you must choose someone to handle the trust until they reach maturity.

4. Create the Document

When you write the document, outline all assets included in your living trust, along with successors, trustees and beneficiaries. You can write this yourself, although it is a good idea to have an experienced attorney assist you.

5. Sign in Front of a Notary

Once you have completed the document, you will need to sign it in the presence of a notary public who is commissioned by the state and serves as an impartial witness. You can search for one online or ask your appointed law firm for assistance.

6. Transfer Ownership to Trust

You must transfer ownership of all your assets to the living trust. Under a revocable trust, you can still access the assets, while an irrevocable trusts require certain permission. Transferring ownership requires some official paperwork. A lawyer is recommended for this task to ensure everything transfers correctly. This avoids ownership disputes later on.

7. Keep in a Safe Place

You do not need to file a living trust with a government agency, but it is your responsibility to store it safely. Tell your successor or trustee where it is so they have access if you pass away unexpectedly or become mentally incapacitated.

Why Partner With Ettinger Law Firm

Ettinger Law Firm is a leading law firm for estate planning. It specializes in the field, including living trusts. With a team that has more than 35 years of experience throughout New York, the firm promises to help you create a comprehensive estate plan with accessible information and a low-pressure approach.

Ettinger Law Firm has twelve locations across the state of New York and focuses on estate planning and elder law. A notable feature is the Lifetime Estate Planning Process, which monitors recent law changes, reviews the plan for free triannually and comes with the Ettinger Elder Alert. This alert system sends weekly notifications containing techniques for managing your wealth and estate. The firm also offers a free consultation.

Benefits of a Living Trust

Living trusts are not exclusive to wealthy individuals and can be a helpful addition to a will. Below are some key features.

Control

Living trusts help you maintain control over your assets. You can make all the important decisions regarding them without interference while you are still alive.

Distribution

Trusts also help distribute your assets upon your death. If there are specific individuals you want to receive your house or a piece of jewelry, you can outline this in a trust and ensure they get it.

Privacy

Having a trust keeps your assets private. Because you do not have to file with a government agency, only you and any successors, trustees or law firms know about it.

Probate

Families of people who passed away without a will or trust must go to probate court, which can be a lengthy legal process that determines how the government distributes the deceased’s assets. New York does not have a Uniform Probate Code, so the procedure is complicated. A trust eliminates this process because you have already determined where your assets go.

Charities

If you want to donate some of your assets to charities, trusts make it easier for successors and trustees to do so. You can outline which charities and what amount you want to give to each.

Taxes

Trusts may reduce your estate taxes. While there is no inheritance tax on trusts, the estate tax in New York fluctuates annually, so check the Department of Taxation and Finance for the updated amount. The federal government also applies some estate taxes.

Finding a Firm for Living Trusts

Preparing for your passing can be a bleak process, but it is necessary to control your assets’ distribution. You can create a living trust on your own or hire a trusted law firm, such as Ettinger Law Firm, as a leading option with relevant experience to assist you.