In probate court, heirs legally receive a deceased person’s assets. The process can be expensive and long, especially if the estate is large. Testators can avoid probate in multiple ways, such as POD (payable on death) accounts, joint tenancy, life insurance, and naming beneficiaries for retirement accounts. While each of these options has limits, a living trust has none. With a living trust, one can avoid probate while taking advantage of the planning flexibility of a will. Clients of The Law Offices of Peter Morra should consider these factors when deciding whether to set up a trust.
Age
Because of the energy and expense involved in maintaining a trust, set up may not be appropriate for healthy people under 55. Living trusts serve no benefit while one is alive, and healthy people likely won’t have probate worries for many years. Until that time, creating a will with the help of a trusts lawyer in Nassau County NY should be sufficient in ensuring the transfer of assets. Additionally, probate avoidance techniques are becoming more acceptable and become more common as one ages.
Estate Size
The bigger an estate, the more assets a person risks losing during probate. The nature of a person’s assets can make a substantial difference. If a person owns something such as a business that would face harm if tied up in probate, a living trust may make sense. Even for the healthy and young, it is smart to avoid forcing the estate executor to report on the business to a judge for years to come.
Marital Status
A married couple planning to leave their assets to each other should not need a living trust, especially if they jointly own large assets. Probate is not required for a jointly owned asset. For property that is held by an individual, most probate methods are relatively good at expediting the process for a surviving spouse, which reduces costs.
While probate court can ensure the correct beneficiary receives assets after one passes away, there are some situations where it is advantageous to avoid the process. However, clients should consider their age, estate size, and marital status when determining how to avoid probate. By hiring a Trusts Lawyer Nassau County NY, a person can make the right decision.
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