Understanding Estate Planning and the Key Differences between a Trust and a Will

Death is inevitable and quite understandably, a hard pill to swallow. Estate Planning in Brooklyn for this inevitability is not the easiest thing anybody has to do. However, it most certainly is one of the most important steps they can take to protect their final wishes.Whether they want to protect their children, partner(s) and/or loved ones so they are provided for in their absence or they want to donate their wealth to a charity, this is a concern that more people need to be proactive about.
It doesn’t matter if somebody has accumulated millions worth of prime Brooklyn real estate, multiple cars, huge investments, and large bank accounts, among other personal possessions, or they have modest savings and a small condo. Whatever you own right now is your estate.As the circle of life would have it, you can’t take your estate with you when you die. After this, the question remains of who will get your estate, how much, and when.
  • Estate Planning

    As the name implies, estate planning is essentially coming up with a plan that answers the questions mentioned previously. It’s a way you can control how your estate is distributed among people and/or organizations you care about.
    This involves sitting down with one of the best estate planning lawyers in Brooklyn and writing down the plan. You both will come up with a plan so you can protect everyone you care for.

    What does it do?

    Identifies who you wish to receive your property after you pass away.
    Minimizes tax and other hurdles to ensure easy transfer of property.
    Determines reduced tax payments and legal fees for property transfer.
    Provides instructions for life-prolonging medical care in case you become disabled before passing away.

    In addition to describing how your real estate, bank accounts, stocks and securities, life insurance policies, and personal belongings are distributed, estate planning answers other questions as well.

    For example:

    1. Who will be appointed as guardian for your minor children?
    2. Does someone need to be appointed to manage the estate in case your children are minors?
    3. What tax payments need to be made to transfer property ownership?
    4. Are there any specific funeral arrangements that need to be made?

    While these pointers explain the gist of what estate planning in Brooklyn involves, the process can be a complex undertaking on your own. There is a lot more that goes into planning for incidences you can’t project.
    This often overwhelms people and they neglect this step. Without anyone’s fault, the family is then left to pick up the pieces once you’re gone.

    If you haven’t thought about estate planning in Brooklyn, then is where you can begin:

  • Will or Living Trust

    These are the most common approaches to estate planning. Most people would have these terms either in movies or in real life, but few understand the differences and commonalities between the two.

    1. The objective of writing a will or living trust is the same: identify what you are leaving behind and the beneficiaries who will receive it.

    The one small difference here would be the transfer of property into the trust if you use a living trust for estate planning.

    2. While a will goes into effect only in case of your death, a trust takes effect as soon as it is finalized.
    3. Your estate, under a trust, can be distributed before your death, at your death or afterward, while wills are assigned a legal representative to carry out your instructions posthumously.
    4. Using a will, you need to assign an adult to manage the property you leave them, set up a testamentary trust or choose a custodian.

    With a trust, the trustee (bank, estate lawyer or another institution) will manage the property until the child comes of age legally or the age you determine.

    5. Properties left through a will usually pass through probate, while properties left through trusts avoid probate.

    This can be an expensive and dragged-out process. However, the right estate planning lawyer in Brooklyn can make it simpler.

    6. For a will, you can name who pays off your taxes and debts and how.

    You can also forgive debts owed to you. Living trusts might not be a suitable option for this.

    7. While both documents are rarely challenged by courts.

    In case it happens, living trusts are harder to attack compared to wills.

These and other technical differences exist between the two devices of estate planning in Brooklyn and other places. This can be a lot to understand, digest, and then execute. There is no tutorial for this.A trained estate planning lawyer in Brooklyn will provide critical insights and guidance, crucial for proper documentation and execution of your last wishes. You can be certain that you made the right decisions and did your best to secure the future of your loved ones. It may be one of the most difficult things you do, but it is all for those you love and care for the most.

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