Mark Glendon

Benefits of a Testamentary Trust

Many kinds of trusts are available to protect your assets and ensure they remain in good hands. They're a critical part of estate planning that you should prepare as soon as possible.

If you have children or grandchildren, a testamentary trust is worth considering. An NYC lawyer for testamentary trust preparation can help you name beneficiaries and figure out the exact details of asset distribution. Visit this website if you need NYC lawyer for testamentary trust.

What is a Testamentary Trust?

The concept of a testamentary trust is simple. It's an arrangement typically created in accordance with a will. The trust outlines what assets you'll give to specific beneficiaries and when they will receive distributions. It's ideal for families with children because it allows you to create timing stipulations and protect your assets from taxes.

Even within the testamentary tax umbrella, there are a few different routes. An NYC lawyer for testamentary trust preparation can help you create separate trusts, family trusts, and more.

Why Choose a Testamentary Trust?

Every situation is different, but these arrangements have many advantages. Here are just a few.

Tax-Advantaged Inheritance

The nature of a testamentary trust paves the way for continued asset growth. Of course, that also means more tax liabilities. The great thing about a testamentary trust is that beneficiaries can enjoy more of your assets than they would if they received a simple lump sum after your death.

Trusts don't have to pay any taxes on income distributed to beneficiaries. It does have to deal with taxes on the assets held, but those distributions come with limited liabilities. Pair that with the trustee's ability to create personalized distributions; there are many ways to gain more tax advantages.

Control and Flexibility

Ultimately, individuals choose to create testamentary trusts because it offers more control than the alternatives. Every family is unique, and the needs of an estate can vary dramatically. In many cases, there are better approaches to distributing assets than simple trusts and bequests.

With testamentary trusts, people have greater flexibility in what happens with assets after their death. They can protect younger beneficiaries, strategically reap the rewards of tax advantages, and take steps to help assets grow.

Author Resource:-

Mark writes often about estate planning. His articles may include topics like real estate closing attorney and business succession laws to help the people in needs. You can find his thoughts at real estate law blog.