Trusts & Estates

Trusts and estates planning is crucial to safeguard your assets. It can be a means to preserve assets in the event of long-term care needs, minimize or eliminate estate taxes, and be as simple as ensuring your lifetime of work and savings passes onto whomever or whichever entities you choose. Without a plan, the state dictates how your property is distributed through intestacy which is the default state rule regarding who gets your assets.

An estate plan affords you and your loved ones peace of mind and security. It allows you to make decisions about how your assets will be used to support your goals while you are alive and after you are gone. When done correctly, it can also reduce estate taxes, preserve your privacy, and help your relatives and heirs manage the burden of your loss. There is a myth that estate planning is only for the wealthy; however, this is far from the truth. With the right trusts and estates planning attorney, you can preserve your assets and ensure a smooth transition of your legacy.

Trusts and Estate Planning Attorney Near Me

Pitta & Baione LLP is a premier estate planning firm located in the heart of New York’s Financial District. Our office at 120 Broadway, 28th Floor, New York, NY 10271 is home to a team of seasoned and experienced trusts and estates planning attorneys.

Trusts and Estates Planning Services Offered By Pitta & Baione LLP

At Pitta & Baione LLP, we are available to assist you with the following services regarding your estate plan:

• Assisting with asset protection strategies: Your unique financial goals will determine what type of trust is best suited for your needs. Certain trusts are best suited for those setting aside funds for disabled or underage children, while others may want a different trust to protect their assets in the event of long-term care needs. Our firm can advise you about how best to navigate these financial goals as well as manage special situations such as blended families, international properties, heirs with small businesses, or credit card debt.
• Drafting estate planning documents: We can help you create meticulous estate planning documents such as your will, trust, power of attorney, and healthcare proxy. Needless to say, we follow all New York state rules and guidelines and stay up-to-date with changes in the field to ensure that you never have a problem with the legality of any of your documentation.
• Answering legal queries on trusts and estate planning: Certain life events like a marriage, separation, birth of a child or grandchild, loss of a family member, adoption and other situations may need you to revisit your trust or estate plan. You may have questions or want to revise the terms of your documents. We can help guide you through the process and ensure all changes are made accurately and with thorough consideration.
• Help prevent common mistakes in trusts and estate planning: Choosing the wrong trustee, overlooking tax liability, failing to update documents, and failing to follow procedural requirements are some of the common mistakes we help our clients avoid. Get it right the first time with Pitta & Baione LLP.

What Does a Trusts & Estates Attorney Do?

A trust is a separate legal entity memorialized by a trust agreement, that is set up so that a designated trustee is entrusted to protect and manage assets for one or multiple beneficiaries. A trust must be created by a natural person (and not a corporation) for a lawful purpose. In other words, it cannot be made to shield assets illegally from creditors or an ex-spouse.

A trust consists of three main parties: its creator, the trustee, and the beneficiary.

• The creator (also known as the settlor or grantor) is the person who creates the trust and it is usually that person’s assets that are used to fund the trust
• The trustee is the person selected to carry out the terms under the trust. The trustee’s responsibilities are generally to keep the beneficiaries informed, prudently manage trust funds, file taxes for the trust, and follow the directions of the trust as to the use of trust funds such as paying bills and making distributions to beneficiaries.
• The beneficiary or beneficiaries are those who are to benefit under the terms of the trust agreement. There can be different types of beneficiaries within the trust such as those entitled to income, those entitled to principle, those who may have a right to the use and occupancy of a house owned by the trust, and the ultimate beneficiaries who will receive the trust assets once the trust is terminated.

A trust attorney is a hands-on legal advisor whose primary role will typically involve the following:

• Advising clients on suitable trust types that meet their needs
• Drafting trust documents in compliance with applicable state laws and statutes
• Incorporating trusts into comprehensive estate planning documents, if any
• Advising on strategies to protect trust assets in the event of long-term care costs or other concerns
• Ensuring proper funding of trusts such as drafting, executing, and recording a deed to transfer title of real estate into the trust
• Advising trustees with ongoing trust administration

There is no one-size-fits-all formula when it comes to establishing, funding, and maintaining a trust. Working with the right lawyer is crucial to ensure that you mutually arrive at a decision that serves your overall estate plan.

Benefits of a Trust

Trusts are a popular option for many estate plans, with numerous benefits, including:

• Providing financial support to children, elderly relatives, or charities
• Protecting your gift to a child or other beneficiary who may be a spendthrift through a spendthrift protection clause
• Providing for a disabled family member through a special needs trust without jeopardizing his/her government benefits
• Bypassing probate to ensure a smoother and more private transfer of assets to heirs (assets held in trust are not subject to public disclosure)
• Preserving assets in the event of long-term care needs
• Enable asset management by a trusted person with clear instructions in the event of incapacity

What Kind of Estate May Be Disposed Of By Trust?

It’s a common misconception that only the top 1% can benefit from establishing a trust or estate plan. Any kind of assets may be disposed of by a trust as long as it is properly created and funded.

Types of Trusts for Estates Planning

There are broadly two categories of trusts: revocable and irrevocable trusts. The simplest way of understanding these categories is that revocable trusts can be changed after they are established, whereas irrevocable trusts cannot.

Under these two umbrellas, there are different kinds of trusts that you may consider, including:

• Irrevocable Medicaid Asset Protection Trust: An irrevocable Medicaid asset protection trust is commonly used to transfer assets to protect assets and at some future date enable qualification for Medicaid health insurance coverage which helps with the cost of long-term care.
• Irrevocable life insurance trust: An irrevocable life insurance trust is a valuable estate planning tool for individuals with assets close to or exceeding federal or New York State estate tax exemptions. When done properly, the death benefits of a life insurance policy are not included in the estate of the decedent, therefore reducing the taxable estate.
• 3rd Party Special needs trust: A 3rd party special needs trust, also known as a supplemental needs trust, allows parents (or other family members) to set aside funds for the benefit of a child (including an adult child) who is disabled. The benefit of this type of trust, if done properly, is to enable funds to be used for the disabled child without jeopardizing his/her government benefits.
• 1st Party Special needs trust: A 1st party special needs trust is created with the funds of a disabled individual. It is commonly used when the disabled individual receives funds such as an inheritance or a settlement. The trust can prevent the loss of government benefits and provide funds that can be used for disabled individuals.

What Does Estate Planning Mean?

Estate planning is the process of planning for asset management in the event of death or incapacity. Every person has their own goals and wishes when it comes to estate planning and it is the job of your experienced attorney to help you figure out how to address those goals and document your wishes. Many people want to be assured that their assets are properly distributed per their wishes after death. This may mean setting up a Will and/or trust.

Many want to have a plan in place in the event of mental decline or incapacity so that financial and healthcare decisions can continue to be made concerning their well-being. This may require creating a Power of Attorney and Health Care Proxy. Many are concerned for the care of their minor children in the event of death. This may require the designation of a guardian of the minor and the creation of a trust for the benefit of the minor.

Many are also concerned about long-term care costs such as the cost of home attendant services or a nursing home. This may require establishing an irrevocable Medicaid asset protection trust.

Importance of Estate Planning

An estate planning checklist can ensure that you have considered all of the most important concerns about the division of your assets and care for your loved ones. The following are some of the benefits of meeting your estate planning goals:

• Helps ensure your assets are distributed according to your wishes and not according to the state’s default rules
• Protecting assets in the event of long-term care needs
• Protecting beneficiaries, like minor kids or dependents with special needs or disabled
• Designates someone to make healthcare and financial decisions on your behalf should you become incapacitated
• Helps with specific needs, like providing for pets, continuing charitable donations, or setting up scholarship funds for grandchildren

Do I Need an Estate Planning Attorney?

Inheritance disputes often stem from procedural challenges. To ensure your wishes are legally binding, you must draft a solid plan. An estate planning attorney can help ensure that your legal document is drafted and executed correctly.

Some additional reasons to consider a trusts and estate planning attorney include:

• Large or complex estates
• Blended families, special needs or disabled dependents, or potential conflicts among heirs (such as adopted step-children)
• Succession planning and other business considerations
• Tax considerations, like preparing a trust and estate tax return
• Gathering estate planning documents

An experienced attorney can help anticipate potential conflicts and make sure things run smoothly and according to their client’s goals.

Why Should I Hire Pitta & Baione LLP for My Trusts and Estates Planning Needs?

At Pitta & Baione LLP, our team has years of experience handling trusts and estate planning services according to New York laws. We adopt a forward-thinking approach to each of our client’s needs, ensuring that we draft a comprehensive estate plan that serves their unique wishes as fully as possible. Our attorneys take pride in being accessible and transparent about our work and expected timelines.

Trusts and Estates Planning: FAQs

How Much Is Estate Planning?

The cost of estate planning varies depending on the extent of our services. Drafting a simple will, for instance, will be less expensive than creating one or more trusts.

What Do Estate Planning Lawyers Do?

A trusts and estate lawyer typically advises clients about optimal estate planning strategies so they may efficiently protect their assets. Estate planning lawyers can draw up legal documents like wills, trusts, healthcare proxy forms, durable power of attorney, living wills, as well as help draft clear guidelines for who will take care of minor children and disabled adults, in the event of their death or incapacitation. The legal documents must be drafted per the applicable laws so they hold up in case they are ever challenged in court.

What Documents Are Needed For Estate Planning?

An attorney can guide you on what documents you will need based on the specifics of your situation. Generally, you will need to provide proof of ownership documents like titles, deeds, and other documents. You will also need to provide proof of identity such as a government-issued photo identification card. An attorney will also likely review previously executed estate planning documents, if any.

What Is a Living Will?

A living will allows you to make certain decisions about your end-of-life care. It can ease the burden on your loved ones in the event of a difficult healthcare situation and help ensure that your wishes are respected.

Is a Trust Part Of an Estate?

It depends. For probate court, trust assets are not part of the estate that requires the court’s intervention before assets can be accessed and distributed. For estate tax consideration, assets in a trust may be considered part of the estate for tax purposes.

Can You Set Up a Trust Without an Attorney?

Yes, it is technically possible to set up a trust without an attorney. However, an attorney will have the knowledge and experience to guide you on the best way to document your estate planning goals as well as consider other estate planning vehicles.

Does a Trust Protect Your Assets From a Lawsuit?

A trust is a powerful tool for asset protection. An irrevocable trust, for example, can limit the ability of creditors to access trust funds. However, a trust can still be subject to a lawsuit, which is why you may want to consult with a lawyer on how best to structure your assets.

How Long Does It Take To Settle an Estate Without a Trust?

How long an estate takes to settle depends upon factors like the size and complexity of the estate, disputes among beneficiaries, and applicable state laws. Generally, this can take anywhere from a few months to several years.

What Is a Digital Estate Plan?

A digital estate executor manages your online accounts, like your social media accounts, email addresses, and other assets. A digital estate plan structures your plans for what will happen to your online assets after you pass away. It protects you from identity fraud and theft.

Thinking About Trusts and Estate Planning? Call Our Experienced Attorneys For a Consultation

If you need help with estate planning and have questions about what kind of trust or will best suits your needs, the attorneys at Pitta & Baione LLP have answers. Trusts and estate planning is an area of law that requires practical knowledge, skills, and a thorough understanding of the nuances of intestacy, tax liability, and other state laws. Contact an estate planning attorney who can start the process with you today by filling out our contact form.