BENEFITS OF A TRUST
1. Avoid Probate
Probate is when the court estimates the assets of the deceased and ensures that all taxes and debts are paid before giving out the inheritance. It can take several months to complete and may largely reduce what the beneficiaries receive.
Creating a trust technically means that the assets are no longer under your possession. Rather, they’re under the protection of a trustee who manages the account for the beneficiaries. This helps to avoid probate and ensures a timely distribution.
2. Provide Flexibility
Wills are difficult to change. If there’s a falling out among relatives or someone passes away unexpectedly, you have to go through the process of drawing up another document and signing it in front of two witnesses.
Trusts, on the other hand, increase flexibility by allowing you to execute an amendment to alter the agreement. There’s no need for a notary or witnesses, so you can easily make the changes at any time.
3. Personal Management
A will doesn’t go into effect until after the author’s passing, which means that your chosen power of attorney won’t become actionable if you end up incapacitated. Rather, the court will appoint someone, such as a close relative, to act on your behalf.
With a trust, the responsibility immediately passes to the successor. You can include a provision in the document that ensures they know the steps to take and can carry out the proper distributions.
If you’re interested in creating a trust to protect your loved ones, consult Pirrello, Personte & Feder, PLLC, Attorney at Law, in Rochester, NY. With over 120 years of combined experience in family and real estate law, we understand the ins and outs of drafting trusts and estates documents. We work with clients throughout Monroe County and the surrounding counties. Call (585) 544-7090 to set up an appointment, or visit our website for additional information on trusts and estates.