When buying a home, you should consider buying it in a trust instead of the traditional way. Purchasing a home through a trust has major benefits, but it involves more complexities and formalities than a traditional home purchase. Engaging the help of an experienced attorney is key.
A trust can avoid the drawn-out probate process, which involves going to probate court and, eventually, the distribution of your assets after your passing, in addition to exorbitant fees, expenses and delays by the court system. Additionally, by avoiding probate, unlike with a will, the name of the individual or other entity who inherits the real estate won’t become a matter of public record. With the advent of technology, protecting our privacy and loved ones from scammers makes the absence of public records even more important.
A qualified estate planning attorney can explain the many types of trusts available to you. Many people decide to deposit their assets in various trusts to guarantee that their estate is completely safeguarded. Revocable and irrevocable trusts are the two categories of trusts.
In a revocable trust, the creator or grantor has complete authority over it and is free to alter its provisions as they see fit, as well as completely revoking the trust. The trust’s grantor may name beneficiaries or, in some situations, may serve as the trust’s beneficiary. However, there are certain tax and asset protection benefits that do not come with a revocable trust.
The irrevocable trust is less flexible when it comes to modification of its provisions. Unlike a revocable trust, it does not permit change or termination of the trust without the trustee’s consent. As a fiduciary, the trustee is in charge of overseeing the assets on behalf of the beneficiary.
Families frequently establish an irrevocable trust to avoid paying estate taxes on inheritances that exceed the $12,060,000 federal estate tax threshold (as of 2022). In cases where you want to shield the estate from future financial obligations, irrevocable trusts may be the answer.
Your attorney should be well-versed in three areas:
A lawyer who focuses their practice on estate planning and probate concerns should be knowledgeable about how your assets will be transferred upon death, how the laws and rules of probate affect the transfer of these assets, as well as the tax implications and exemptions related to this transfer. While you have good intentions when you designate your beneficiaries, you may be leaving your loved ones with burdensome tax consequences if your estate planning doesn’t anticipate these issues proactively. An experienced estate planning attorney will factor in the tax implications when helping you plan your estate.
Real Estate Law
The trust must be properly drafted to offer the advantages that are inherent in them. Additionally, it must be properly included in a structured estate plan. The benefits will be negligible or nonexistent if you don’t put your real estate into a trust with a comprehensive, well-organized estate plan. As you can see, hiring legal counsel will enable you to make the most of a real estate trust.
Trust Administration Law
The only factors determining how an individual’s possessions are distributed after death are their estate plan and the attorney they choose. As a result, without adequate estate planning and legal representation, a person’s possessions are left up to the state to split.
Solidify Your Legacy
At Beress & Zalkind, our estate planning attorneys can help you establish trusts that protect your family and your estate from a costly, time-consuming, and stressful probate process. When you’re ready to discuss protecting your assets and solidifying your legacy, contact us by calling (718) 513-3588 or emailing firstname.lastname@example.org.