Planning can help prevent problems. This is especially true with trusts. For generations, Karp Law Office's experienced trust lawyers near Syracuse, NY have helped families prepare for a more secure financial future.
Karp Law Office can help you and your loved ones' establish a legally sound trust, including:
- Irrevocable trust,
- Revocable trust,
- Living trust,
- Testamentary trust,
- Special needs trust,
- and more
To meet with our experienced trust lawyers near Syracuse, NY for any of the above trusts...
What is a Trust?
A trust refers to a legal document that details how property should be held. For example, money or property can be placed in a trust (also known as a trust fund). This can protect the money or property from being subject to estate taxes.
Trusts and Probate
Placing money or property in a trust can also help to avoid probate. Probate refers to the legal proceeding that determines how an estate is distributed. Trusts are a great way to prevent a drawn out, often expensive probate process, allowing beneficiaries to receive money or property gifted to them as part of a trust sooner.
Benefits of Establishing a Trust
People choose to establish a trust for a variety of different reasons. Common benefits of establishing a trust are detailed below.
You Control Who Gets What From Your Estate — Not the Government or Someone Else
Establishing a trust empowers you to control who will receive what upon your passing. This can help to ensure that your family is provided for after your passing. A trust gives the person who establishes the trust the power to determine who will receive what from a trust, and when.
For example, if you want to help your child or grandchild pay for college, you can set aside money for this in a trust. You can even set terms of the trust that would determine when a beneficiary may access money in a trust, such as once the beneficiary turns 18 years old.
Protect Money or Property from Probate, So Your Beneficiaries Get More
Wills are subject to probate, where a court handles the distribution of what you've left to your family, loved ones or others. While a will can dictate who gets what through probate, this leaves your estate open to being contested, which can result in lengthy, expensive probate proceedings.
Unlike wills, trusts do not have to go through the probate process. This means that what you've left to someone in a trust could be subject to fewer taxes. By avoiding probate by placing inheritance in a trust, your beneficiaries also get to keep more of what you've left for them, rather than family or loved ones having to pay for court fees for probate.
Reduce What's Owed On Estate Taxes
If money or property is placed in an irrevocable trust, that money or property is no longer considered part of your estate. This means that the money or property isn't subject to estate taxes.
By placing money or property in an irrevocable trust, the people who will receive your inheritance will owe less from your estate taxes. This helps your beneficiaries in two ways. First, you're able to provide more for your beneficiaries because less of what you've left for them is subject to estate taxes. Second, your beneficiaries will owe less on your estate taxes.
Protect Your Money from Being Depleted by Long Term Care Costs
Nursing homes and other long term medical care is very expensive. If trusts are not established to protect a trustee's money, what would have been a helpful inheritance for family or loved ones can quickly be completely spent on nursing home care or long term medical care.
More often than you may think, people's entire inheritance can end up paying for a nursing home or long term care. If set up properly, a trust can prevent this.
Due to extremely high and rising costs, the only option that many people have to pay for nursing homes or long term care is to try to qualify for Medicaid. This is why setting up a trust as soon as possible is so important. Medicaid has certain rules when it comes to qualifying for Medicaid for long term care. Specifically, Medicaid has a "five year look back period."
Confused About Trusts?
What is the Five Year Look Back Period?
When trying to qualify for Medicaid to pay for nursing home or long term care costs, Medicaid has the right to look at your assets from the past five years. If you have established a trust within the 5 year period before applying for Medicaid, you will be ineligible for Medicaid. If ineligible for Medicaid, you may end up having to deplete what's in your trust just to pay for nursing home care or long term care.
Our Trust Lawyers Can Help You and Your Loved Ones from Spending a Trust on Nursing Homes or Long Term Care
Generally, people set up a trust so they can provide for their family and heirs after they pass away. In simple terms, most people want a trust to go to the people they care about most. Too often, trusts get completely depleted in order to pay for nursing home costs and long term care.
Karp Law Office's trust lawyers near Syracuse, NY can help you establish a trust that will go to the people you care about, rather than a trust fund being blown on nursing home costs.
For generations, our trust lawyers have been there for families, helping them navigate Medicaid laws and trusts. We have the specific legal knowledge and decades of experience that families depend on to help ensure their family or loved ones are provided for after a trustee's passing.
There are several different types of trusts. Depending on your personal and financial goals, one type of trust may be a better fit than another.
Don't risk losing what's in a trust to nursing homes or long term care.
Why It's Important to Set Up the Right Kind of Trust
If a trust is not established appropriately to help ensure the desired outcome, trustees and their beneficiaries risk losing some or all of what's in a trust. Between estate taxes, long term care expenses and much more, it's essential to properly establish a trust to prevent the trust from being depleted for unintended purposes.
Which Type of Trust is Right for You or Your Loved Ones? Talk with Our Trust Lawyers near Syracuse, NY
Karp Law Office's trust lawyers near Syracuse, NY understand the fine legal details of the different types of trusts.
For decades, we've helped families figure out which trust is right for their personal and financial goals. For generations, our trust lawyers near Syracuse, NY have been there for families, helping them to establish trusts that are effective in achieving the desired outcome.
Let's Talk About the Right Trust for Your Personal Goals
Call Our Trust Lawyers at 315-458-5040
What is an Irrevocable Trust?
With an irrevocable trust, property or money is placed in the trust, and the money or property cannot be accessed during the lifetime of the person who set up the trust.
Assets placed in an irrevocable trust are no longer considered to be the property of the person who established the trust. This makes an irrevocable trust beneficial in certain ways.
Irrevocable Trust and Nursing Homes or Long Term Care
Sometimes, someone other than the person who created the irrevocable trust is named as the trustee; this is an approach that is often used to protect assets from being depleted from nursing home or long term care costs.
Irrevocable Trust and Estate Taxes
Because assets in an irrevocable trust are no longer the property of the person who established the trust, this typically means that these assets are not subject to estate taxes.
Our Trust Lawyers near Syracuse, NY Can Help Establish an Irrevocable Trust
Karp Law Office's trust lawyers near Syracuse, NY have extensive experience in establishing irrevocable trusts. Our trust lawyers can meet with you or your loved one to discuss your estate planning goals. We will then work with you to establish an irrevocable trust that's made to meet your personal goals.
Revocable Trust (or "Living Trust")
What is a Revocable Trust or Living Trust?
A revocable trust, also known as a living trust, is a trust where the terms may be changed during the lifetime of the person who established the trust.
Revocable trusts also convert to an irrevocable trust once the person who established the trust passes away.
You Can Make Changes and Access Assets from a Revocable Trust
A revocable trust or living trust offers flexibility, allowing the person who established the trust to access the money from the revocable trust as they please.
Revocable Trusts and Nursing Homes or Long Term Care
Because assets can be accessed from a revocable trust during the lifetime of the person who established the trust, assets in a revocable trust would be able to be used toward the cost of nursing homes or long term care.
Because of this, assets in a revocable trust matter a lot when it comes to Medicaid eligibility for nursing home care or long term care. If you or a loved one have assets in a revocable trust, you or your loved one will be required to use the assets in the revocable trust before being eligible to receive Medicaid for nursing home or long term care costs.
Revocable Trusts and Estate Taxes
Because property in a revocable trust is still technically the property of the person who established the trust, revocable trusts are subject to estate taxes.
Our Trust Lawyers near Syracuse, NY Can Help Establish a Revocable Trust
Karp Law Office's trust lawyers near Syracuse, NY understand the advantages and disadvantages of establishing a revocable trust. Our trust lawyers will take the time to get to know you and your goals. Based on your individual goals for a revocable trust, we will provide personalized guidance on establishing a revocable trust.
Our trust lawyers near Syracuse, NY and the surrounding areas have the experience and specific legal knowledge that you need to establish a goal-oriented revocable trust.
What is a Testamentary Trust?
A testamentary trust is a type of trust that is generally created as part of a last will and testament. Because of this, testamentary trusts are subject to estate taxes and the probate process.
With a testamentary trust, the person who establishes the trust determines a trustee who will administer the trust once the person who established the trust has passed away. Testamentary trust trustees have control over the assets in trust once the trust takes affect after the person who established the trust passes away and the last will and testament has completed the probate process. This means that the trustee has control over when the beneficiary can access the assets in a testamentary trust. Because of this, the beneficiaries of testamentary trusts generally include young children or loved ones with disabilities.
Terms of a testamentary trust may be established, such as the trust expiring once the beneficiary reaches a certain age or life event, such as graduating from college or getting married.
Special Needs Trust
What is a Special Needs Trust?
A Special Needs Trust is a type of testamentary trust. Specifically, beneficiaries of a Special Needs Trust include individuals with physical or mental disabilities.
Our Trust Lawyers near Syracuse, NY Can Help Establish Testamentary Trusts or Special Needs Trusts
Karp Law Office's trust lawyers near Syracuse, NY are experienced in helping families establish testamentary trusts and special needs trusts. We understand the unique considerations that must be accounted for, and we understand estate planning law as it relates to these types of trusts.
Talk with a Karp Law Office trust lawyer about how you can establish a testamentary trust or special needs trust that meets your individual goals.
Our Trust Lawyers Can Help Protect Your Assets and Provide for Beneficiaries
Karp Law Office trust lawyers near Syracuse, NY and the surrounding region have the experience and in depth knowledge of trusts and estate planning to help you achieve your goals.
Planning ahead is essential for trusts and estate planning. For a free consultation...