advantages and disadvantages of a living trust

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGES AND DISADVANTAGESOF A LIVING TRUST

A Guide for Residents of Naples, NY Interested in a Living Trust

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

CREATING A LIVING TRUST

A living trust is another name for a revocable trust.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

The person who creates a living trust is called the grantor.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGES AND DISADVANTAGES OF A

LIVING TRUST

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

A living trust is an alternative to an irrevocable trust.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

There are some advantages and disadvantages which should

be considered before creating a living trust.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGE: A Living Trust Can be Changed or Modified

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

An irrevocable trust often cannot be altered once it is created, except

to change beneficiaries.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

A living trust allows you to change and modify the trust as needed,

so you have more flexibility.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGE: A Living Trust Allows Continued Control

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

When you create an irrevocable trust, you usually name someone

else as a trustee to manage assets so you can create separation between

you and the trust.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

With a living trust, on the other hand, the grantor who

creates the trust can and often does act as the trustee and

continue to maintain virtually full control over trust assets.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGE: A Living Trust Helps Plan for Incapacity

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

When you create a living trust, you can name a backup trustee

who takes over if incapacity prevents you from being able to

manage trust assets.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

This allows you to ensure you’ve designated a person to take over

right away to protect your assets in case something happens to you.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGE: A Living Trust Allows Assets to Transfer

Outside Probate

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

When you create a living trust, assets in the trust may transfer outside of the probate process.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

This can facilitate a faster transfer of assets after death so heirs receive

assets sooner and can begin managing those assets sooner.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

ADVANTAGE: You Don’t Have to File a Separate Tax

Return

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

When you create an irrevocable trust, the trust often has to file a

separate tax return.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

This is not generally the case when a living trust is created, so you save on tax compliance

costs and paperwork.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

DISADVANTAGE: Living Trusts Provide Limited Asset

Protection

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

A living trust does not provide the same level of asset protection

as an irrevocable trust.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

Your assets in the trust can still count for purposes of determining

if you qualify for Medicaid to cover nursing home care.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

A living trust won’t shield assets from being counted for

estate tax purposes.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

GETTING HELP WITH TRUST CREATION

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

A Naples, NY estate planning lawyer can help determine if a living

trust is the best choice or if an irrevocable trust may be preferable.

196 North Main St., PO Box 417, Naples NY 14512

1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817

Click to visit mrobinsonlaw.com.Or call us at (585) 374-5210 to

schedule a consultation.