Trust Lawyer on Long Island, NY 

What Is a Trust?

A trust is a legal arrangement between three people/entities. The settlor is the person who establishes the trust to hold assets. The trustee is the person charged with managing the trust. Finally, the beneficiary is a person or organization that will receive the assets in the trust.  

Much like a will, trusts allow you to determine how your assets will be distributed after you pass away. However, trusts differ from wills in significant ways. Trusts go into effect when you sign them, meaning your assets can be managed and distributed even before you pass.

Trusts also make it possible for your estate to avoid probate. You may know probate is a court-supervised process of distributing assets. It is often lengthy and expensive. With a trust, your beneficiaries can receive assets without the hassle of probate. 

The Types of Trusts 

Some of the most common types of trusts include:

• Living trusts: These allow you to transfer assets and property into a trust while you are alive, hence their name.
• Testamentary trusts: These are created through a will and take effect after your passing.  
• Special needs trusts: If you have a loved one with special needs, this trust can allow you to support them financially without jeopardizing their eligibility for government benefits.
• Spendthrift trusts: These trusts regulate beneficiaries’ access to funds for their benefit. They can also protect assets from creditors.

What Assets Can You Put in Trusts?

You can put many kinds of assets and property in a trust. These things include real estate, financial accounts, personal property, business interests, and life insurance policies. It is even possible to place intellectual property in a trust. 

The Benefits of Creating a Trust

Creating a trust is a decision you will likely be glad you made. At Treglia Law, our Long Island trust attorney can assist you with all things concerning this advantageous estate planning tool. 

With our lawyer’s help, you can secure many of the benefits of a trust, including:

• Asset protection: A trust allows you to protect your assets from creditors, lawsuits, and other financial risks. 
• Eliminating the need for probate: By placing assets in a trust, you can allow your beneficiaries to receive assets without probate. 
• Asset distribution control: With a trust, control when and how your assets are distributed. In fact, you can set detailed guidelines, such as requiring beneficiaries to be a certain age or reach milestones before receiving an inheritance.
• Privacy: Trusts generally remain private, while wills become part of the public record. This means a trust can keep the details of your assets and their distribution private. 
• Tax advantages: Depending on the type of trust, you could shield your assets from estate taxes. You may also contribute to certain kinds of trusts while avoiding gift taxes. 
• Peace of mind: Ultimately, creating a trust can offer you the peace of mind that comes from knowing your assets and property are protected and will be managed and distributed just how you wish.