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Law & Legal
  1. How to Qualify for a Medicaid Waiver
  2. Six Reasons Someone May Be Placed Under a Guardianship
  3. What Can Be Included in a Will?
  4. How Much Should You Put as a Down Payment on a House?
  5. 3 Assets That Can Fund a Trust
  6. Why You Should Have a Life Insurance Policy
  7. Is Real Estate a Good Financial Investment?
  8. S-Corp vs. C-Corp
  9. 5 Reasons Someone Might Disinherit a Child
  10. Benefits of a Testamentary Trust
  11. Steps on How to Sign Up for Life Insurance
  12. What is the Estate Administration Process?
  13. What Types of Government Benefits are Available for the Elderly?
  14. What is the Job of an Executor?
  15. What is a Simple Estate Plan?
  16. Why You Should Have a Will
  17. 3 Things You Need to Prepare Your Taxes
  18. Tips for Planning an Estate
  19. What is Electronic Notarization?
  20. Are There Requirements to Qualify for Medicaid Home Care?
  21. 3 Benefits of Tax Planning
  22. 3 Things to Know About Retirement Planning
  23. How Does Mental Illness Impact Your Estate Planning Process?
  24. What is a Lawsuit for Wrongful Death?
  25. What is The Tax Code?
  26. Guide to Become a Tax Advisor
  27. Does My Parents' Divorcing Impact My Inheritance?
  28. Guide to Understand When You Should and Shouldn't Buy a Home
  29. 3 Things a CPA Can Help With
  30. Tips to Maximize Your Tax Refund
  31. 3 Reasons You Should Have a Tax Accountant on Retainer
  32. Do Self-Employed Individuals Get Taxed Differently?
  33. What are Unclaimed Funds?
  34. 4 Things to Know About Surrogate's Court
  35. 3 Reasons Having Advance Directives is Important
  36. What are Estate Taxes?
  37. What is The Estate-Tax Exemption?
  38. Who Has to File Taxes?
  39. 3 Reasons You Should Have a Trust Protector
  40. Understanding Spousal Impoverishment
  41. Who Files Taxes For Businesses?
  42. Should I File My Taxes Using Turbo Tax?
  43. 3 Ways to Protect Against Financial Exploitation
  44. Who Qualifies for a Special Needs Trust?
  45. Guide on How to Write Off Business Expenses When Doing Your Taxes
  46. 3 Things Every Small Business Should Know
  47. Why Updating Your Will is Important
  48. What is the Probate Journey?
  49. What Happens if I Don't File My Taxes?
  50. Tax Accountant vs CPA
Benefits of a Testamentary Trust {{ currentPage ? currentPage.title : "" }}

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.

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.

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