Trusts Attorney Long Island NY
Law Offices of James Henry Dunne, Esq.
Nassau • Suffolk • Queens • Brooklyn • NYC
Call or Email Now for a Complimentary Consultation
516-483-7037
Nassau • Suffolk • Queens • Brooklyn • NYC
Call or Email Now for a Complimentary Consultation
516-483-7037
Knowledge • Experience • Efficiency • Integrity
Earning Trust By Exceeding Expectation
Safeguard Your Assets & Privacy
Revocable Trusts
Irrevocable Trusts
Testamentary Trusts
Special Needs Trusts
Revocable Trusts
Irrevocable Trusts
Testamentary Trusts
Special Needs Trusts
Trusts are thought of as a vehicle for wealthy individuals. However, Trusts have a place in the estate and legacy planning for individuals of more modest means too. Trusts are an important piece of estate planning but are the source of a great deal of confusion. In addition, Trusts are often unnecessarily promoted by some attorneys selling a product that may not be in your best interest.
Many times, Trusts are formed to preserve the wealth that is passed on to 'spendthrift' beneficiaries as an alternative to inheriting wealth in a 'windfall' all at once from a Will. Statistics show that almost 70% of those that inherit will spend the entire inheritance within 18 months and more than 70% of beneficiaries will buy a luxury car within 21 days of receiving their inheritance. Studies have also found that assets are completely gone over 90% of the time prior to lasting for the benefit of the generation that follows the named beneficiaries (making it unlikely that grandchildren will receive any of what you had hoped they would). A Trust can help to avoid these issues and ensure that the legacy you pass on is utilized for the long-term security of your beneficiaries (for their Maintenance, Education, Support, and Health — in other words, their "needs," but not necessarily their "wants").
A Trust is created during an individual's (Grantor's) lifetime whereby a designated person, the Trustee, is given responsibility for managing the Grantor's assets for the benefit of the eventual beneficiary (or beneficiaries). The Trustee holds legal possession of assets and property that flow into the Trust. A Trust is designed to allow for the easy transfer of the Grantor's assets while bypassing the often complex and expensive legal process of probate. Living Trusts can be either irrevocable or revocable.
A Revocable Trust allows the Grantor to modify the Trust, but that Grantor loses certain benefits such as creditor protection. Revocable Trusts may be amended or canceled at any time as long as their creator (the Grantor) is mentally competent. They do offer the benefit of allowing their creator to cancel them and reclaim property held by the Trust at any time before their death. However, such Trusts do not offer the same protection against legal action or estate taxes as Irrevocable Trusts, which is often why people seek to establish a Trust in the first place. Trusts also offer privacy for those that wish to avoid the public eye. The privacy which a Trust affords is one of the key reasons Trusts are used by many people who guard their privacy zealously. When using a Revocable Trust, government entities will consider that any property held in the Trust belongs to the Trust's creator and therefore may be included in their estate for tax purposes or when qualifying for government benefits.
Revocable Trusts are also often appropriately recommended due to the complexities of many 'modern' relationships in today's society. Addressing the complexities of second marriages, non-marital domestic partnerships, children from past relationships, minor children and adult step-children, special needs children (and adults), and more, bring complexities to the estate planning process making a Will something that may not be the best way to commemorate your wishes, or to protect those that need it most after you pass or become incapacitated.
An Irrevocable Trust is a type of Trust where its terms cannot be modified, amended or terminated without the permission of the grantor's named beneficiary or beneficiaries (with some exceptions). The Grantor, having effectively transferred all ownership of assets into the Trust, legally removes all of their rights of ownership to the assets and the Trust. The main reasons for setting up an Irrevocable Trust are for estate and tax considerations. The benefit of this type of Trust for estate assets is that it effectively removing the Trust's assets from the Grantor's taxable estate. It also relieves the Grantor of the tax liability on the income the assets generate. While tax rules periodically change, in most cases, the Grantor cannot receive these benefits if they are the trustee of the Trust. The assets held in the Trust can include, but are not limited to, a business, investment assets, cash, and life insurance policies. Once property is transferred to an Irrevocable Trust it is owned by the Trust for the benefit of the named beneficiaries. Therefore, it is safe from legal judgments and creditors, as the Trust will not be a party to any lawsuit. It is important to note that an Irrevocable Trust cannot be modified, amended or terminated without the permission of the Grantor's named beneficiary or beneficiaries.
Additional considerations are Testamentary Trusts, which begin when you pass away, and Special Needs Trusts, which are created to protect the assets of disabled individuals while still qualifying them for government benefits.
The only way to find out what best meets your needs is to candidly share your history, current situation, family dynamic, and future goals with James so he can make a recommendation that is best for you.
Call or Email Now for a Complimentary Consultation
Many times, Trusts are formed to preserve the wealth that is passed on to 'spendthrift' beneficiaries as an alternative to inheriting wealth in a 'windfall' all at once from a Will. Statistics show that almost 70% of those that inherit will spend the entire inheritance within 18 months and more than 70% of beneficiaries will buy a luxury car within 21 days of receiving their inheritance. Studies have also found that assets are completely gone over 90% of the time prior to lasting for the benefit of the generation that follows the named beneficiaries (making it unlikely that grandchildren will receive any of what you had hoped they would). A Trust can help to avoid these issues and ensure that the legacy you pass on is utilized for the long-term security of your beneficiaries (for their Maintenance, Education, Support, and Health — in other words, their "needs," but not necessarily their "wants").
A Trust is created during an individual's (Grantor's) lifetime whereby a designated person, the Trustee, is given responsibility for managing the Grantor's assets for the benefit of the eventual beneficiary (or beneficiaries). The Trustee holds legal possession of assets and property that flow into the Trust. A Trust is designed to allow for the easy transfer of the Grantor's assets while bypassing the often complex and expensive legal process of probate. Living Trusts can be either irrevocable or revocable.
A Revocable Trust allows the Grantor to modify the Trust, but that Grantor loses certain benefits such as creditor protection. Revocable Trusts may be amended or canceled at any time as long as their creator (the Grantor) is mentally competent. They do offer the benefit of allowing their creator to cancel them and reclaim property held by the Trust at any time before their death. However, such Trusts do not offer the same protection against legal action or estate taxes as Irrevocable Trusts, which is often why people seek to establish a Trust in the first place. Trusts also offer privacy for those that wish to avoid the public eye. The privacy which a Trust affords is one of the key reasons Trusts are used by many people who guard their privacy zealously. When using a Revocable Trust, government entities will consider that any property held in the Trust belongs to the Trust's creator and therefore may be included in their estate for tax purposes or when qualifying for government benefits.
Revocable Trusts are also often appropriately recommended due to the complexities of many 'modern' relationships in today's society. Addressing the complexities of second marriages, non-marital domestic partnerships, children from past relationships, minor children and adult step-children, special needs children (and adults), and more, bring complexities to the estate planning process making a Will something that may not be the best way to commemorate your wishes, or to protect those that need it most after you pass or become incapacitated.
An Irrevocable Trust is a type of Trust where its terms cannot be modified, amended or terminated without the permission of the grantor's named beneficiary or beneficiaries (with some exceptions). The Grantor, having effectively transferred all ownership of assets into the Trust, legally removes all of their rights of ownership to the assets and the Trust. The main reasons for setting up an Irrevocable Trust are for estate and tax considerations. The benefit of this type of Trust for estate assets is that it effectively removing the Trust's assets from the Grantor's taxable estate. It also relieves the Grantor of the tax liability on the income the assets generate. While tax rules periodically change, in most cases, the Grantor cannot receive these benefits if they are the trustee of the Trust. The assets held in the Trust can include, but are not limited to, a business, investment assets, cash, and life insurance policies. Once property is transferred to an Irrevocable Trust it is owned by the Trust for the benefit of the named beneficiaries. Therefore, it is safe from legal judgments and creditors, as the Trust will not be a party to any lawsuit. It is important to note that an Irrevocable Trust cannot be modified, amended or terminated without the permission of the Grantor's named beneficiary or beneficiaries.
Additional considerations are Testamentary Trusts, which begin when you pass away, and Special Needs Trusts, which are created to protect the assets of disabled individuals while still qualifying them for government benefits.
The only way to find out what best meets your needs is to candidly share your history, current situation, family dynamic, and future goals with James so he can make a recommendation that is best for you.
Call or Email Now for a Complimentary Consultation