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LIVING TRUST LAWYER IN ROCHESTER NY

A Living Trust is a trust created by a person while they are alive, and provides for that person or others. A Living Trust may be either revocable or irrevocable, depending on the objective. Trusts are a useful and flexible tool for both estate and asset protection planning, including the assurance of continued governmental benefits, and wealth preservation. Trusts are useful for avoiding probate, and for protecting assets from creditors or other unwanted claims.

A revocable Living Trust provides flexibility and probate avoidance, and is most useful for clients with complex family situations, privacy concerns, or who own real property in more than one State.

Irrevocable trusts are often used to reduce estate taxes, preserve governmental benefits, or to protect assets from the nursing home. They are also useful tools in second marriages, or for families struggling with problems of alcoholism, drug addiction, mental health issues, or creditor claims.

Testamentary trusts are trusts which are created in a Last Will and Testament. They are not considered “living trusts”, as they are not created while you are living, but rather upon your death and through your Will. The selection of a living trust or testamentary trust requires careful consideration and experience.

LIVING TRUSTS FAQ

What are the disadvantages of a living trust?
A living trust can add complexity (and cost) your estate plan. It also requires funding, which many people neglect.

What is the purpose of a living trust?
A living trust is a testamentary substitute that can be used to avoid the estate administration process. This is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

Which is better a will or a living trust?
Everyone should have a Will. If someone needs a living trust, they should also have a Will. There is no one-size-fits-all best solution. The decision needs to be made with the advice of an attorney who focuses his or her practice exclusively on trusts and estate planning.

Who needs a living trust?
A living trust is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

Do you pay taxes on a living trust?
A typical irrevocable living trust is taxed internally at the highest possible rate. A revocable living trust or an irrevocable grantor trust are taxed at the grantor’s tax rate. You should consult with a tax professional as part of your planning.

Are trusts a good idea?
A living trust is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

Can I create a living trust myself?
Any trust is a complex legal document that should be prepared by an attorney who focuses his or her practice on trusts and estate planning. The consequences of improper drafting or using software without an attorney can be disastrous and expensive.

When should you start a trust?
There are many types of trusts. Some trusts are used for income or estate tax planning. Some are used for asset protection or Medicaid eligibility. The most common trusts are used when there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

Do I need a will if I have a living trust?
Absolutely. If you neglect to place assets in the trust, the Will makes sure those assets make their way into the trust.

What is a living trust?
A living trust is a testamentary substitute that can be used to avoid the estate administration process. This is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

How does a living trust work?
A living trust is a testamentary substitute that can be used to avoid the estate administration process. This is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

How to execute a living trust after death?
Living trusts are established during lifetime. They can be revocable or irrevocable. Testamentary trusts are established after death, and are irrevocable.

How to set up a living trust?
A living trust is a complex legal document that should be prepared by an attorney who focuses his or her practice on trusts and estate planning. The consequences of improper drafting or using software without an attorney can be disastrous and expensive.

What is a revocable living trust?
A living trust is a testamentary substitute that can be used to avoid the estate administration process. This is a good idea if there are assets in multiple states, a complex estate plan, a need for privacy, or a less than ideal family situation.

How much does a living trust cost?
Depending on the complexity, a plan involving a living trust will include a Will, Powers of Attorneys and a Health Care Proxy and will typically cost several thousand dollars when properly prepared by an attorney who focuses his or her practice on trusts and estates. Some software programs are less expensive, but the consequences of using the software without the supervision of an attorney can be disastrous and far exceed the cost of hiring an attorney in the first place.

Can you have both a will and a living trust?
If you have a living trust, you should also have a Will which transfers assets to the trust in case you forgot to transfer them during life.

Can I amend my living trust without an attorney?
This is typically a bad idea as both the drafting and execution of the documents are complex. Errors in this planning can cost far more than discussing revisions with an attorney.

Does a living trust protect assets from nursing home?
A properly drafted irrevocable living trust can protect assets for future Medicaid eligibility. A revocable living trust provides no protections under the current laws.

How do taxes work in a living trust?
A typical irrevocable living trust is taxed internally at the highest possible rate. A revocable living trust or an irrevocable grantor trust are taxed at the grantor’s tax rate. You should consult with a tax professional as part of your planning.

What to do when spouse dies with a living trust?
The Trustee should consult an attorney to properly account for trust assets, prepare a settlement, and release the Trustee from further liability to the beneficiaries.

Can a living trust be contested?
A living trust can be contested, particularly in the accounting aspects. However, unlike a Will, there are no notification requirements to living heirs that are not specifically named as trust beneficiaries.

How to transfer real estate into a living trust?
Your attorney should prepare a deed as well as the necessary ancillary documents. This is a complex legal process which must be 100% accurate, or title to the property may be tarnished.

How do I get a copy of a living trust?
The Grantor can choose to provide you with a copy if you ask them. In addition, if you are a named beneficiary, you will receive notification when the trust is settled.
There is no other person I could think of that I could trust to understand my complex family... I feel good about what we have accomplished.

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RICHARD A. KROLL
ATTORNEY

Richard A. Kroll, Esq. has an active practice in the area of Estate Planning, Trusts, and Probate. He is a member of the...

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CAROLYN A. REARDON
ATTORNEY

Private practice in Rochester, New York with the Kroll Law Firm since 2007, a group practice in Brighton, New York with emphasis on...

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MARCUS W. KROLL
ATTORNEY

Marcus's practice involves estate planning for all families, including LGBT couples, second marriages, and families who have members with...

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