What is a Living Trust?
A living trust is a legal document that you create during your lifetime in order to legalize your desires regarding your assets during your life and after death. A living trust has a “trustee” who manages the trust, as well as one or more “beneficiaries” who benefit from the trust. When you work with our team at Vernon & Associates, P.C. in Jamaica, we will help you create your living trust and ensure its legality, giving you the peace of mind that your assets and your loved ones are taken care of in the event of your death. Keep reading to learn more about the different types of living trusts, and call our law office in Jamaica today to schedule a consultation.
There are many types of trusts, including:
Medicaid Asset Protection Trusts
Special Needs Trusts
Pooled Income Trusts
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When it comes to drafting a living trust, it’s not legally necessary to hire an experienced attorney. However, you must be mindful of the fact that the validity of your living trust depends on its full compliance with the statutory requirement of New York State Law. Failure to follow the exact specification of the law when it comes to drafting your living trust may result in it not being valid. Instead, work with a team of attorneys you can trust at Vernon & Associates, P.C. in Jamaica. We’re ready to help you create a living trust that secures your assets and ensure your family and loved ones are taken care of after you pass.
The revocable trust is the most popular type of living trust. It is so popular that many people refer to it as “a living trust.” Just as the name suggests, a revocable trust can be changed or revoked by the grantor at any time. Changing or revoking a revocable trust may not be simple, but it can be done, which makes it a more flexible option for a living trust. Contact us at Vernon & Associates, P.C. to learn more.
An irrevocable trust cannot be changed without the consent of the creator and all of the beneficiaries. If you intend to file for community Medicaid or institutionalized Medicaid in the future, and irrevocable trust may serve you best.
An important thing to remember about revocable and irrevocable trusts is that when the grantor or creator of the trust dies, a revocable trust automatically converts to an irrevocable trust, simply because the only person who could have changed or revoked the trust has passed on.
Medicaid Asset Protection Trust (MAPT)
A Medicaid Asset Protection Trust does exactly what the name suggests. When your assets are placed in this type of trust, your assets are not counted as a resource for Medicaid eligibility purposes. If long-term care is needed, a MAPT allows the applicant to qualify for long-term care benefits from Medicaid while protecting the applicant’s assets from being depleted.
As long as the trust is created and the assets are transferred five years before the grantor applies for the Medicaid long-term care benefits, Medicaid will not penalize the donor for transferring the assets, and the trust existence will not impact Medicaid eligibility.
If the Medicaid applicant did not transfer the asset five years before he or she applied for Medicaid, the attorneys at Vernon & Associates, P.C. may be able to assist the applicant in avoiding the penalty period and thereby helping to avoid depletion of their assets.
Call us today to learn more.
What is the Difference Between a Will and a Living Trust?
Both a will and a living trust specify how your assets are to be distributed when you pass on. When an individual dies, his or her will has to be “probated” before the assets can be distributed as directed. This probate process can be costly and time consuming. In fact, it is not uncommon to spend more than $10,000 over a number of years. This also means that your family will not have immediate access to your assets after your death.
A living trust, on the other hand, is treated like a separate legal entity. When the trust is created, your assets are placed into the trust. After your death, probate is not necessary, and your family will save time, money, and stress. Contact our team at Vernon & Associates, P.C. to put your living trust together today.
Special Need Trust
A Special Need Trust is a specialized trust that allows the disabled beneficiary to enjoy the use of property that is held in the trust for his or her benefit, while at the same time allowing the beneficiary to receive needed government benefits.
Pooled Income Trust
A Pooled Income Trust is a type of Special Needs Trust operated by a non-profit organization for the benefit of people with disabilities or people over 65 years old. This trust allows disabled people or people over 65 to keep income that they would otherwise have had to turn over to a long-term care facility.
Schedule a Consultation Today
Don’t let the process of creating a living trust overwhelm you. With help from our experienced attorneys at Vernon & Associates, P.C., you can ensure that your assets will be distributed exactly as you wish after you pass. Contact us today to schedule a consultation.