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your assets as per the terms of your successor trustee(s) begin managing the
will. As such, the job is very important, trust’s affairs, and disposing of the trust
and should be given to someone who is assets as per your directions.
responsible, trustworthy, and meticulous
in their record keeping. A common circumstance that is
encountered in New York is the elderly
If you have been nominated as the decedent who owns both their long
executor of a friend or family member’s time New York residence, and a Florida
estate, be mindful in your duties, and condominium for their retirement years.
keep excellent records of all expenditures In these circumstances, without an RLT,
made on behalf of the estate. By doing the family of the decedent will have to
so, you will honor the legacy of your probate the decedent’s will (or, in the
loved one, assist their heirs in their time of absence of a will, bring an administration
need, and protect yourself from potential proceeding) in both New York and Florida.
liability. After accounting for filing fees, legal
fees, service of process, and the potential
Trusts necessity for travel, this can more than
There are dozens of varieties of trusts, double the cost of administering the
each of which can be used to accomplish estate. By utilizing a RLT, you can avoid
different goals. For most circumstances, these problems, save money and time for
however, your attorneys will recommend your heirs, and leave a lasting legacy for
one (or several) of three variants of trusts your family. Almost without exception, we
- the basic revocable living trust, the advise that our clients who own real estate
irrevocable “Medicaid” trust. Each trust or other property in multiple states utilize
serves its own specific purpose - generally, an RLT for estate planning purposes.
irrevocable trusts are for asset protection
and estate tax purposes, where revocable
trusts are considered “will substitutes”. Irrevocable “Medicaid” Trusts
The irrevocable “Medicaid” trust is a
special type of trust utilized to protect
Revocable Living Trusts your assets - and in some cases, make
A revocable living trust (“RLT”) is a so- you eligible for government benefits - in
called “will substitute” - it is freely the event that you require certain forms
revocable during your lifetime, and you of care, while safeguarding your assets
(and your spouse, if a joint trust) may for the benefit of your heirs.
act as trustee(s) of the trust. RLTs have
many advantages - they simplify estate In New York State, the average cost of a
administration, avoid the necessity of nursing home is approaching $10,000.00
probate, and serve special purposes per month at the time of writing. In
for those who own property in multiple the downstate region, the cost of such
states. An RLT, like any trust created care already exceeds that number by
during the grantor’s lifetime, is its own approximately 20%. As such, the cost of
legal person. By setting up an RLT, you care quickly diminish your hard earned
will effectively begin administering your savings, and prevent your children from
own estate during your lifetime. This inheriting the money that they otherwise
means that when you pass away, your would.
successor trustees will step immediately
into your shoes, without having to go Let’s utilize the example of “Rose
through the length process of probate. Smith”, a fictional prospective client.
Administratively, the only thing for Rose has pension and security income
your family to do, will be to have your of approximately $3,000.00 per month,
Perry Funeral Home, Inc. - Page 27
