It is well established that living trusts are a good estate planning vehicle. Living Trusts can be
used to achieve most of your estate planning goals. Trusts can be used to minimize estate and
income taxes, avoid probate, and protect assets from Long Term Care Expenses such as nursing
home bills.
One common misconception about Living Trusts is that they are all the same. This is not true,
in fact, nearly all trusts differ depending on the circumstances. There is no standard form trust
which fits everyone. The trust which your neighbor does is going to be different from the trust
which you may need.
In determining which Living Trust is right for you, there are many factors which need to be
considered. First of all, a person’s particular wishes will often affect the type of trust they may
need.
Another factor is the size of your estate and the type of assets owned. A person whose is
wealthy will have a different trust then a person whose is middle class. A person whose estate
consists mostly of real estate will have a trust which differs from a person whose estate consists
mostly of liquid investments. A person’s income and cash flow will also affect the type of trust
they need.
A person’s marital status, family situation and age are also factors in determining the type of
trust. A single person’s trust may be different from a married persons trust. A person who has
close family will have a trust which is different from a person who does not have close family.
If you have minor or disabled children, then your trust will be different from a person who has
non-disabled adult children. A person who is middle aged will have a trust which is different
from an older person and so on. Similarly, a person’s health will also impact the type of trust
they need.
There are numerous factors and variables to consider when setting up a living trust. All of
these factors need to be examined and discussed in order to properly draft the trust which fits
you. It is important to get the right advice and personalized guidance in these situations. You
should consult with an attorney experienced in the areas of elder law and estate planning to help develop
your living trust.
You can call us at 718-928-3355 or email your questions to [email protected].
