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Wills

A Will is a legal request for how your assets should be distributed upon your death. It can also identify a preferred guardian for any surviving children.

When a person passes away, their estate often goes through probate, a court-managed legal process that declares a Will valid and ensures the orderly distribution of their assets. It includes:

• Proving in Court that a decedent's Will is valid
• Identifying and inventorying the decedent's property
• Having the property appraised
• Paying debts and taxes
• Distributing the remaining property as the Will directs

If the person owned their assets through a well drafted and properly funded trust, it is likely that no court-managed probate will be necessary. Oftentimes, a successor trustee simply needs to administer the distribution of the decedent's assets.

Trusts

It's always surprising to find out how many people think that a trust is only for the “rich and famous.” Nothing could be further from the truth. Alan J. Willmes, Esq. can explain the different types of estate planning trusts available and help you determine which will be the most beneficial for you and your family.

A “Living Trust” is a trust that takes effect during the lifetime of its creator (known as the “Settlor” or “Grantor”).

A “Testamentary Trust” is a trust that is created under the terms of a Will and does not take effect until death.

Both types of trusts allow great flexibility in carrying out your wishes.

Since Living Trusts are created during a person's lifetime, they can be either revocable or irrevocable. Irrevocable Trusts are often created for Medicaid planning purposes or to obtain favorable income tax and/or estate tax benefits. For example, a “Medicaid-qualified” Irrevocable Asset Management Trust is typically used to protect an individual’s home and investments, while an “Irrevocable Life Insurance Trust” can remove all life insurance proceeds out of the taxable estate.

A partial list of benefits of trusts include:

• Protecting assets from nursing home costs / qualifying for Medicaid
• Minimizing Federal and/or New York estate taxes
• Avoiding Probate
• Residential real estate closings
• Providing for the care of an individual with special needs
• Providing for the care of a minor