When it comes to estate planning in New York, wills and trusts are two of the most common tools used to manage assets and ensure your wishes are carried out. While both serve key roles, there are significant differences between a trust vs. will in NY that are important to keep in mind as you plan for the future.
In this guide, we’ll explore the key distinctions between these two estate planning tools, as well as their advantages and disadvantages. Whether you’re just starting to think about your estate planning or looking to review an existing plan, this overview will help you make an informed decision.
Understanding the Basics: Wills vs. Trusts in New York
At their core, wills and trusts are estate planning tools used to facilitate the distribution of assets after the owner’s death. However, they differ in their purpose and structure.
Wills
A will is a legal document that outlines how a person’s assets and property should be distributed upon their death. It names an executor to oversee the process and can also include provisions for guardianship of minor children. Wills go through probate, a court-supervised process that can be time-consuming and public.
Trusts
In contrast, a trust is an arrangement where a trustee (the person managing the trust) holds and controls assets on behalf of one or more beneficiaries (the people who will receive the assets). Trusts allow for the transfer of assets outside of probate, offering potentially faster distribution. They can also be used to manage assets during the owner’s lifetime.
An estate planning attorney in New York can help you understand the nuances of wills and trusts and determine which option, or combination, best fits your needs and goals.
Additional Differences Between Wills and Trusts
Beyond the basic structure and probate process, wills and trusts in New York have several other important distinctions.
One key advantage of trusts is their ability to protect assets from creditors and lawsuits. Once assets are transferred into a properly structured trust, they are generally shielded from the grantor’s personal creditors or legal judgments. This can provide an added layer of safeguarding for your wealth and legacy.
Trusts also offer more flexibility in terms of asset management and distribution. The trustee can be granted a wide range of powers to invest, distribute, and even control the assets according to the grantor’s wishes. This can be particularly useful for managing complex estates or providing for minor children or other dependents.
Last but not least, trusts maintain greater privacy compared to wills, which become part of the public probate record. This confidentiality can be important for individuals or families who value keeping their financial affairs out of the public eye.
If you’re considering using a trust as part of your estate plan, consider searching for a “trust attorney near me.” An experienced lawyer can help guide you through every step of the process.
Disadvantages of Wills and Trusts in New York
While wills and trusts both offer important estate planning benefits, they also have some potential drawbacks to consider:
Wills:
- Wills are subject to probate, which can be a lengthy and costly process.
- The contents of a will become part of the public record, potentially compromising privacy.
- Wills offer less flexibility in terms of asset management and distribution compared to trusts.
Trusts:
- Establishing a trust typically requires more time and upfront legal fees than creating a will.
- Transferring assets into a trust can be complex and may require re-titling property.
- Ongoing administration and management of a trust can result in additional costs and responsibilities.
An experienced estate planning attorney in New York can help you weigh the pros and cons of wills and trusts in the context of your specific goals and circumstances, and recommend strategies to minimize the potential disadvantages of each approach.
Choosing the Right Estate Planning Tool for Your Needs
Determining whether a will or a trust (or a combination of both) is the best fit for your estate planning needs requires careful consideration of your unique goals and priorities. Factors like the complexity of your asset portfolio, your desire for privacy, and your plans for asset distribution can all influence the optimal approach.
Consulting with an experienced estate planning attorney is invaluable in this decision-making process. They can help you understand the nuances of wills and trusts, analyze your specific situation, and recommend the most appropriate solution to ensure your wishes are carried out effectively.
Work with an Experienced Estate Planning Attorney in New York
If you’re searching for “trust attorney near me,” or “lawyer for wills near me,” in Riverhead, NY or surrounding areas, the experienced POA and estate planning attorneys at Sherryll Law, P.C. on the East End of Long Island are ready to guide you through each step of the process.
We’ll work closely with you to assess your loved one’s care needs and preferences, and help you establish a comprehensive power of attorney that protects their interests and grants you the authority to make important decisions on their behalf.
Let us be your legal guide through this journey. Contact us at (631) 506-8440 or complete our online form to schedule a consultation.
Protect your legacy with Sheryll Law
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The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.
Sheryll Law, P.C.
633 East Main Street, Suite 2
Riverhead, New York 11901
(631) 506-8440
https://sheryll-law.com/
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