All About Living Trust NY

Revocable Living Trust All About Living Trust NY

Living Trust NY

The laws of setting up a living trust differ according to state - this article will guide you on how you can create a living trust in the state of New York! We’ll also go over DoNotPay’s Revocable Living Trust service, which allows you to set-up a living trust in minutes!

What Is a Living Trust?

A living trust is a legal document under which a certain individual, called a grantor, designates a trustee to manage the assets in the trust and make sure it goes to the beneficiaries. The trust is designed to allow for an easy and smooth transfer of the assets of the trust created while bypassing the long and expensive legal process of probate. 

The Two Types of Living Trusts: Revocable vs Irrevocable

There are two types of living trusts; a revocable trust and an irrevocable living trust

Revocable TrustIrrevocable Trust
  • The grantor can designate themselves to be the trustee
  • The terms can be changed during your lifetime, and the trust can be completely revoked.
  • You retain total control of the assets enlisted in the trust. 
  • Since you retain control of your assets, you will still be taxed on them.
  • A revocable trust is not protected from lawsuits or creditors.
  • The grantor must appoint a trustee and cannot designate themselves
  • The terms of the trust cannot be changed and it cannot be terminated. 
  • You relinquish control over your assets that are enlisted in the trust.
  • Your assets are outside your control so they are no longer taxable 
  • An irrevocable trust is protected from lawsuits and creditors. 

It is important to note that most revocable trusts become irrevocable upon death. To find out more, click here.

What Are the Differences Between a Trust and a Will?

A trust and a will are both estate planning tools with many similarities, however there are also a number of elements that distinguish a trust from a will: 

Revocable Living TrustsWills
Names the beneficiaries of your propertyYes Yes
Leaving a property to young childrenYesIt might 
Revise your documentYesYes
Avoid probateYesNo
Maintains privacy after deathYesNo
Must be signed in front of a notary publicYesNo
Requires transfer of property YesNo
Protects the grantor from the court challengesYesNo
Avoids a conservatorship YesNo
Names the guardians for childrenNoYes
Names the property managers for children’s propertyNoYes
Names an executor of the documentNoYes
Instructs how taxes and debts should be paid NoYes
Simple to createNoYes
Requires witnessesNoYes

Creating a Living Trust in New York

  1. The main advantage of setting up a living trust is that it eliminates the expenses and skips the delays of a probate court.
  2. Seeing as New York does not use the Uniform Probate Code, which is a code that simplifies the probate process, it is recommended for residents of New York to set up a living trust to avoid the complex probate process. 
  3. Even if you set up a living trust, it’s recommended to create a will to serve as backup for your trust and ensure that all your assets are allocated to a beneficiary. 

How to Set Up a Living Trust in New York

To create a living trust in New York, you should follow these six steps:

  1. First, you must decide whether to make an individual or shared trust.
    1. An individual trust contains only the property and assets you own.
    2. A shared trust, also known as a joint trust, contains the property and assets owned by you, your spouse, or those co-owned by you and your spouse. 
  2. Choose which properties and assets you want to include in the trust
  3. You must designate a successor trustee, which is the person that will manage your assets and ensure they reach the beneficiaries after the grantor is no longer capable of doing so themselves. 
  4. Appoint beneficiaries for the assets and property. These beneficiaries are the ones that will get the trust property. 
  5. Set up the trust document. In this step, you can either hire a lawyer to create the trust for you, write the trust yourself or follow an online template. The following section will explain the options and their costs.
  6. The living trust must then be signed in front of a notary public. 

Cost of a Living Trust

The cost of creating a living trust varies according to how you will set up. Hiring a lawyer is notoriously expensive - you must be willing to pay between $1,200 to $2,000. Creating your own trust is very time consuming and is difficult to do if you do not have a lot of free time. It is also very tricky and you must be extremely cautious.

But not to worry, DoNotPay can create a perfect living trust for you!

Get Your Living Trust Error-Free in Minutes with DoNotPay!

  1. Open the Revocable Living Trust product on DoNotPay
  2. Answer a series of questions including: Who will be your trustee(s)? Who will be your beneficiaries? What assets would you like to include in the trust?
  3. Tell us which state you will be getting the trust notarized in

That’s all you need to do to get your very own revocable trust tailored to the state of New York!

DoNotPay Does It All!

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