Trusts and estate planning are critical components of managing one’s financial legacy, offering structured options for asset distribution and family wealth management. This legal field addresses the creation of trusts, wills, powers of attorney, and health care directives—each designed to ensure that an individual’s wishes are honored and their loved ones are taken care of in their absence. Effective estate planning not only provides peace of mind but also minimizes potential disputes and taxes, ensuring a smooth transition of assets to the next generation.
At the Law Office of Angela Siegel, we specialize in guiding clients through the complexities of trusts and estate planning. Based in Garden City, Angela Siegel serves clients throughout New York and Florida, offering expert legal counsel tailored to each client’s unique circumstances and goals. With a compassionate approach and a deep understanding of the intricacies of estate law, Angela ensures that every estate plan is meticulously crafted to protect her client’s interests and provide for their family’s futures.
Types of Trusts in Estate Planning
Some types of trusts that may be useful in estate planning are:
Trusts for Minors
Many people leave money to their children or their grandchildren in a trust as part of a comprehensive estate plan. This is typically done to ensure the money is there for the children’s benefit while they are younger, such as support, education, medical expenses, etc. Once the children reach a certain age or achievement level (such as obtaining a bachelor’s degree), they may receive money from the trust to do with as they please.
Special Needs Trust
Special needs trusts are tools that enable a person to leave property to an individual with special needs. Many individuals with special needs receive government benefits. If they were to suddenly inherit money, they would be disqualified in most cases from those benefits until the inheritance was spent. Special needs trusts protect those individuals’ government benefits while allowing them to have money for any extras they may need.
Marital Trusts
Married couples sometimes include trusts in their wills, or separately, for the benefit of their spouse, typically for two reasons: (1) taxes and (2) property protection. In previous years, marital trusts were needed for some couples to take advantage of estate tax exemptions, and they may be needed in the future as the laws are expected to change. Marital trusts can also protect property from a spouse to ensure that it ultimately goes where it needs to go. For example, a husband with grown children from a previous marriage may decide to let his wife use his property after he passes, but puts it into a trust so that after she passes away it goes to his children.
Revocable Living Trusts
Revocable living trusts are documents completely separate from wills although they often work hand in hand with wills to carry out the decedent’s wishes. Revocable living trusts are primarily used to avoid probate in states where probate is particularly cumbersome, or in a few other instances, such as when a person owns real estate in multiple states.
Irrevocable Life Insurance Trusts
Irrevocable life insurance trusts (or ILITs) can be used in order to move a person’s life insurance proceeds outside his or her estate for estate tax purposes.
Spendthrift Trusts
Spendthrift trusts are generally established to protect the beneficiaries’ assets from both themselves and creditors. These trusts usually have an independent trustee which has complete discretion over the distribution of assets of the trust.
As you can see, there are many different types of trusts, each of which can be customized to serve a valuable purpose in accomplishing the wishes of those making gifts or planning an estate. An experienced estate planning attorney can help you assess your finances and goals to determine the best vehicles to preserve your wealth and your legacy.
Ready to Create a Trust in New York or Florida? Contact Us Today!
If you’re ready to start planning your estate or need guidance on the right type of trust for your situation, contact the Law Office of Angela Siegel today. Our dedicated team is ready to help you preserve your wealth and ensure your legacy is protected. Call us or visit our office in Garden City, or reach out online to schedule a consultation.