Property that changes hands through a trust does not need to go through the probate process. As a result, trusts are versatile tools that can help to ease tax burdens, make individuals eligible for Medicaid benefits, or provide payments to other parties without the challenges of probate.
A Manhattan trusts lawyer could help you form trusts that meet your estate planning needs. Whether you are looking to transfer property upon your death, or want to get a head start, a skilled attorney could help you decide whether a trust is the right option for you.
The Fundamentals of Trusts
A trust is one way that people can legally transfer property to others. Unlike traditional estate planning tools, such as wills, a trust can go into effect at any time. State law sets in place specific rules for people to follow when creating a trust.
According to Kansas Statute § 58a-402, a person making a trust must be of sound mind and have the intention of making this legal document. Additionally, the trust itself must specifically name property, identify a beneficiary, and nominate a person or organization to serve as a trustee. Outside of these rules, a trust may serve any purpose.
Once the creator of the trust signs the paperwork, the document takes immediate effect based on the term of the agreement. Under the law, trustees must follow the language of the agreement and perform their duties appropriately. A Manhattan lawyer could further explain the legal concepts that control the creation and execution of trusts.
What are the Benefits of Creating a Trust?
When most people think about estate planning, they imagine the standard choice of creating a will. However, wills only have legal power after a person’s death, and will likely need to go through probate, which can be costly, confusing, and time consuming.
Trusts offer a way to transfer ownership of property and avoid legal entanglements after a person’s death. Another advantage of a trust is flexibility, as these documents may go into effect and provide property to beneficiaries at any time. In addition, this change of ownership avoids tax liabilities. In this way, parents may leave homes to adult children while they move into retirement without paying taxes on the transfer or waiting until their passing.
Trusts also help parties avoid the lengthy and costly probate process. An attorney in the area could help people decide whether a trust is the right choice for them.
Get in Touch with a Manhattan Trusts Attorney
Every person should have an effective estate plan so they and their family can be prepared in the event the person unexpectedly passes away or becomes incapacitated. An effective estate plan can ensure a person’s wishes are met, such as providing money to charity, transferring ownership of a family home, or releasing control over a family business.
A trust is one way to achieve all these goals. A trust allows parties to transfer ownership of property to others while avoiding both taxes and probate. Contact a Manhattan trusts lawyer today to explore your options.