REASONS TO USE TRUSTS

      April 26, 2018 was a beautiful day for the Annual Hot Sauce party sponsored by the Atria, Nothing Forgotten and Senior Helpers, on the rooftop of the NYC Atria on 86th Street, overlooking the Hudson. In attendance were elder care professionals such as Comfort Keepers, Humana, Right at Home and Alliance Homecare, among many more elder professionals, too numerous to mention. The party was an opportunity to enjoy the elusive spring sun and to discuss the daily challenges elder professionals face.  One such challenge that faces the Levy Law Firm is educating clients how Trusts are an effective elder planning tool.  There are twelve main reasons why Trusts should be considered for anyone who is interested in creating or updating his or her Trust as follows:

1. Irrevocable Trusts can protect a home and other assets from Medicaid liens, for those receiving Medicaid benefits.
2. Irrevocable Trusts can shelter assets from medical expenses and long term care expenses.
3. Trusts with specific provisions can protect real property and other assets from divorce, creditors and bankruptcy.
4. Trusts can protect the inheritance of children if a surviving spouse remarries.
5. Trusts can protect the inheritance for children from a first marriage and provide benefits to a spouse from a second marriage.
6. Trusts can utilize the current Federal exemption of $11,180,000.00 and the NY State exclusion of $5,250,000.00 to protect assets from estate taxes.
7. Trusts can protect appreciating assets from capital gains tax by providing a step-up in cost basis.
8. Revocable Trusts can avoid probate in New York, as well as avoid probate in other states.
9. Trusts, as opposed to Wills, can protect the privacy of Trust beneficiaries and the value of an estate from public scrutiny.
10. Depending on the size of the estate, probate can be much more expensive than the fees associated with creating a Trust.
11. Special Needs Trusts benefit a disabled beneficiary with property held in the Trust, while receiving government benefits.
12. Donations made to Charitable Trusts can reduce a taxable estate.