Founding Attorney
Most families want to make things easier for their loved ones and preserve as much of their hard-earned assets as possible. A well-crafted trust can help achieve both goals. By placing certain property in a trust, you can ensure it passes smoothly to your beneficiaries while minimizing taxes and avoiding the delays that often accompany probate court proceedings.
What Is Probate?
Probate is the court process that validates a will and oversees the distribution of an estate. While it serves an important purpose, it can also create unnecessary delays and costs for families who are already dealing with loss.
Common frustrations with probate include:
- Lengthy court timelines
- Attorney and filing fees that reduce the value of the estate
- Public disclosure of financial details
- The potential for disputes between family members
For these reasons, many people prefer to keep their property out of probate. One of the most effective solutions is creating a trust.
How Does a Trust Help You Avoid Probate?
When you place assets in a trust, those assets are legally owned by the trust itself rather than by you as an individual. After your death, the trustee you selected distributes the assets directly to your beneficiaries according to your instructions. Because the property no longer needs to pass through your personal estate, the probate court is not involved.
That means your loved ones can receive their inheritance more quickly, at a lower cost, and with greater privacy, which is essential for families in New York and New Jersey. By transferring ownership to a trust, you can save your beneficiaries from having to handle two court processes.
Trusts Provide Tax Advantages
Beyond keeping assets out of probate, certain trusts can help reduce the taxes your estate may be subject to. The type of trust you create determines whether and how those benefits apply.
Revocable Living Trusts
These are the most common trusts used for estate planning. They are flexible, allowing you to change or revoke them at any time. While a revocable trust does not reduce taxes during your lifetime, it keeps your estate private and facilitates more efficient asset transfers after death.
Irrevocable Trusts
These trusts cannot be easily changed once created, but they can remove assets from your taxable estate and protect them from creditors. Common examples include:
- Credit Shelter Trusts for married couples to take full advantage of estate tax exemptions
- Irrevocable Life Insurance Trusts (ILITs) to prevent life insurance proceeds from being taxed as part of the estate
- Charitable Trusts to support causes you care about while reducing taxable income or estate value
Properly structured, these trusts can lead to significant tax savings for you and your heirs. Because tax laws in New York and New Jersey differ and are subject to change over time, professional guidance ensures that your plan adheres to the latest requirements.
Common Types of Trusts in Estate Planning
Trusts come in many forms, each serving a specific purpose. Some of the most common include:
- Revocable Living Trust–Avoids probate and allows you to maintain control of your assets during your lifetime.
- Irrevocable Trust–Offers potential estate tax and asset protection benefits.
- Special Needs Trust–Preserves government benefits for a loved one with a disability.
- Charitable Trust–Establishes a charitable legacy while reducing tax exposure.
- Testamentary Trust: Established through a will to provide long-term management of assets, though it still goes through probate.
Selecting the right trust depends on your personal goals, family dynamics, and financial situation.
How a Trusts and Estates Attorney Can Help
A trust only works as intended when it is properly created and funded. Failing to retitle assets or using generic online forms can result in assets still being subject to probate or tax benefits being lost.
Working with an experienced attorney helps ensure that:
- Your trust is compliant with both state and federal laws
- Assets are correctly transferred into the trust
- The document clearly defines how property should be distributed
- Your wishes are legally enforceable
At Merlino & Gonzalez, we assist clients throughout New York and New Jersey in establishing trusts that reflect their goals and protect what matters most to them. We take the time to understand your unique circumstances, explain your options in clear and straightforward language, and prepare all necessary documentation.
Plan Today to Protect Tomorrow
At Merlino & Gonzalez, we work with families to design trust-based plans that safeguard wealth and simplify the estate process. Whether you live in Staten Island or East Brunswick, we are ready to help you create a strategy that fits your needs and secures your family’s future.Contact us today to schedule a consultation and learn how the right trust can make a lasting difference.