Estate planning often includes setting up a trust to benefit your loved ones now and after your death. They are administered outside of probate, so the disposition of assets is faster. Some trusts acquire ownership of the grantor’s assets, which is a way to qualify for Medicaid and pay for nursing home care. When you are planning your estate, a well-versed legal professional could help you navigate the process from start to finish.
Trusts need administrators to manage them. Our diligent trusts attorneys at Tully Law Firm, PC, serve in that capacity, but if you name a family member or friend, we are also happy to assist them in their duties to ensure your wishes as the grantor or maker are followed. Trusts can be complicated, but a Melville trust administration lawyer could help make them less daunting.
Revocable trusts are also called living trusts because the grantor sets them up and can control them by adding and removing assets and beneficiaries during their lifetime. Although they cannot be used as tax shelters, and some retirement accounts are not eligible for a deposit, these trusts circumvent probate, which means the public has no access to the details as they do in probate cases. Assets are quickly distributed after the grantor’s death.
When grantors become incapacitated, the courts appoint conservators to oversee assets, but if a revocable trust is in place, the trust administrator automatically steps in without court interference. When a grantor dies, a revocable trust is irrevocable. Once an irrevocable trust is established, the grantor cannot alter it because the assets have been transferred to the trust as owner. Irrevocable trusts are tax shelters and are especially useful for separating interests in a family business. A Melville trust administration attorney from our firm could discuss how a trust can benefit a particular situation.
Trust administrators are fiduciaries with a heightened duty to abide by the trust maker’s wishes, mostly after the maker dies. The administrator must put the maker’s interests first and cannot consider any act that benefits the administrator to the detriment of the maker, such as undervaluing an asset and selling it to a family member. Trust administrators:
Other forms, such as Form 1041, may have to be filed for income taxes. A Melville trust administration attorney ensures the process runs smoothly so beneficiaries receive their assets promptly.
Trust administrators unfamiliar with the process should hire professionals to assist them because beneficiaries can unknowingly make errors that may result in the trust losing money. Challenges may also routinely include the maker of a revocable trust not being of sound mind when removing or adding assets or beneficiaries to the trust or questions about the administrator’s day-to-day handling of the trust.
Revocable and irrevocable trusts are essential tools when conducting estate planning. You can provide for loved ones and friends, but also for your pets, charities you support, and to help pay for nursing home care. Trusts are administered separately from probate, so they are less expensive. Some are used as tax shelters.
We are happy to discuss your estate planning needs and whether a trust can benefit you. A Melville trust administration lawyer from our firm could serve as your administrator or assist someone unfamiliar with the process. Contact us today to schedule a consultation at your convenience.
