By Brian Figeroux, Esq.
Estate planning is a critical step in securing your family’s financial future and ensuring your assets are distributed according to your wishes. In New York, two of the most commonly used estate planning tools are wills and trusts. While both serve the purpose of asset distribution, they function differently and offer distinct advantages. Understanding the differences between wills and trusts will help you make an informed decision about which option best suits your needs.
At Figeroux & Associates, an experienced team of estate planning attorneys can guide you through the decision-making process, ensuring that your estate plan aligns with your financial goals and family dynamics. Whether you prefer to work with an attorney remotely or in person at their Brooklyn office, the firm offers flexible consultation options to accommodate your schedule. You can book an appointment at 26 Court Street, Brooklyn, NY 11242, by visiting www.askthelawyer.us, calling 855-768-8845, or texting 718-986-4362.
Understanding Wills and Trusts: The Basics
Before choosing between a will and a trust, it’s important to understand what each document does and how it affects your estate.
What Is a Will?
A will is a legal document that outlines how your assets will be distributed after your death. It allows you to:
- Designate beneficiaries for your assets.
- Appoint an executor to oversee asset distribution.
- Name guardians for minor children.
- Specify funeral and burial arrangements.
A will must go through probate, a court-supervised process that ensures the document is valid and assets are distributed according to your wishes. Probate can be time-consuming and costly, but it provides court oversight to prevent disputes.
What Is a Trust?
A trust is a legal arrangement in which a trustee holds and manages assets for the benefit of beneficiaries. Trusts can be revocable (living trusts) or irrevocable:
- Revocable Trust (Living Trust): Allows you to manage assets during your lifetime and transfer them to beneficiaries upon death without probate.
- Irrevocable Trust: Once created, it cannot be altered, but it offers asset protection and tax benefits.
Trusts bypass probate, providing a faster, more private way to distribute assets. They can also help with tax planning and protecting assets from creditors.
Wills vs. Trusts: Key Differences
| Feature | Will | Trust |
|---|---|---|
| Probate Required? | Yes | No (avoids probate) |
| Effective When? | After death | Immediately upon creation |
| Privacy | Public record after probate | Private |
| Control Over Assets | Full control until death | Can transfer assets while alive |
| Protection Against Challenges | Can be contested in probate court | Harder to challenge |
| Guardianship for Minors? | Yes | No (requires a separate provision) |
| Estate Tax Benefits | Limited | Significant (especially with irrevocable trusts) |
When to Choose a Will in New York Estate Planning
A will may be the right choice if:
- You Have a Simple Estate: If you have limited assets, a will can efficiently distribute them without the complexity of a trust.
- You Want Court Oversight: Probate ensures that a court oversees the execution of your estate plan, reducing the risk of fraud.
- You Need to Appoint a Guardian for Minor Children: Wills are necessary for naming guardians for young children, as trusts do not cover this aspect.
- You Are Not Concerned About Probate: If your family is comfortable with waiting several months for the probate process, a will may be sufficient.
- You Do Not Need Asset Protection: Unlike trusts, wills do not provide protection from creditors or estate tax benefits.
When to Choose a Trust in New York Estate Planning
A trust may be a better option if:
- You Want to Avoid Probate: A trust allows your assets to pass directly to beneficiaries, bypassing the lengthy and expensive probate process.
- You Value Privacy: Unlike wills, which become public records, trusts remain private.
- You Have Significant Assets: If you own multiple properties, investment accounts, or a business, a trust can simplify asset management.
- You Want to Plan for Incapacity: A trust allows a successor trustee to manage your assets if you become incapacitated.
- You Need Special Provisions: Trusts allow you to set conditions on when and how beneficiaries receive their inheritance, such as protecting assets for young or financially irresponsible heirs.
- You Seek Estate Tax Benefits: Trusts, particularly irrevocable trusts, offer ways to reduce estate taxes and protect wealth for future generations.
Working with Figeroux & Associates to Create Your Estate Plan
Choosing between a will and a trust depends on your specific financial situation and estate planning goals. At Figeroux & Associates, you receive personalized guidance to ensure your estate plan reflects your wishes and provides for your loved ones.
- In-Person Consultation at the Brooklyn Office
If you prefer a face-to-face consultation, you can visit Figeroux & Associates at 26 Court Street, Brooklyn, NY 11242. An estate planning attorney will:
- Review your financial situation and estate planning needs.
- Explain the pros and cons of wills and trusts.
- Help you draft and finalize the necessary documents.
- Remote Legal Services for Convenience
For those who prefer remote services, the firm offers flexible options:
- Phone Consultations: Speak directly with an estate planning attorney by calling 855-768-8845.
- Virtual Meetings: Get professional guidance via video conferencing.
- Text Support: Send inquiries or schedule appointments by texting 718-986-4362.
- Online Booking: Visit www.askthelawyer.us to schedule a consultation at your convenience.
Updating Your Estate Plan: The Importance of Regular Reviews
Estate planning is not a one-time event. Life changes—such as marriage, divorce, the birth of a child, or acquiring new assets—may require updates to your will or trust. Figeroux & Associates offers ongoing support to ensure your estate plan remains current and effective.
When to Update Your Estate Plan
- Marriage or Divorce
- Birth or Adoption of a Child
- Significant Financial Changes
- Relocation to a Different State
- Death of a Beneficiary or Executor
- New Business Ventures
Conclusion: Secure Your Legacy with Expert Estate Planning
Deciding between a will and a trust is a crucial step in securing your assets and ensuring your loved ones are cared for. If you are unsure which option is best for you, consult the experienced estate planning attorneys at Figeroux & Associates.
Whether you choose to meet in person at their Brooklyn office or prefer a remote consultation, the firm offers flexible and professional legal services tailored to your needs.
Schedule your estate planning consultation today:
- Website: www.askthelawyer.us
- Phone: 855-768-8845
- Text: 718-986-4362
Take control of your estate plan today to protect your legacy and provide peace of mind for your loved ones.
