One great advantage of a trust is the ability to define how trust assets will be managed and distributed before death so that the trust continues to operate as you wish after death. With proper investment strategies, trusts can be a tax-saving device as well as an asset growth strategy. By placing many assets into one trust, the grantor (the person funding the trust is the grantor) is able to have centralized control and the transition in ownership can be made without a court process upon the death of the grantor.
Grantor Can Also Be Trustee
A grantor may also be the trustee of a revocable trust while he is mentally and physically capable which means he can manage his own money. He can make deposits into the trust, withdraw assets as he sees fit and can take advantage of asset preservation and growth strategies. He can use the money for his own needs or make tax-free payments to educational institutions and medical providers on behalf of his beneficiaries.
Trust Instructions Continue to Control the Trust after Death
After a grantor passes away, the trust administration is either taken over by a professional organization or an individual whom the grantor chose before he passed away. The trust assets are then managed according to the trust instructions. Trust instructions should be flexible for the trustee to make prudent financial decisions based on changing markets and based on the needs of the beneficiaries. While maintaining control of a trust is one of the greatest assets of a trust, putting restrictions on the trust which are too strict could result in diminished trust assets or in beneficiaries not getting the financial help they need in an emergency.
Getting Legal Help
Experienced Estate Planning Attorney Elga Goodman can help you set up a trust and maintain control over your estate assets now and in the future. Call us today at 973-841-5111 to learn more.
Posted in: Estate Planning, New York Estate Planning