A living trust is an alternative to an irrevocable trust. There are some advantages and disadvantages which should be considered before creating a living trust.

1. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGES AND DISADVANTAGES
OF A LIVING TRUST
A Guide for Residents of Naples, NY Interested in a Living Trust

2. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
CREATING A LIVING TRUST
A living trust is another name for a revocable
trust.

3. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
The person who creates a living
trust is called the grantor.

4. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGES AND
DISADVANTAGES OF A
LIVING TRUST

5. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
A living trust is an alternative
to an irrevocable trust.

6. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
There are some advantages
and disadvantages which should
be considered before creating
a living trust.

7. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGE:
A Living Trust Can be Changed or Modified

8. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
An irrevocable trust often cannot
be altered once it is created, except
to change beneficiaries.

9. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
A living trust allows you to change
and modify the trust as needed,
so you have more flexibility.

10. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGE:
A Living Trust Allows Continued Control

11. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
When you create an irrevocable
trust, you usually name someone
else as a trustee to manage assets so
you can create separation between
you and the trust.

12. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
With a living trust, on the
other hand, the grantor who
creates the trust can and often
does act as the trustee and
continue to maintain virtually
full control over trust assets.

13. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGE:
A Living Trust Helps Plan for Incapacity

14. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
When you create a living trust,
you can name a backup trustee
who takes over if incapacity
prevents you from being able to
manage trust assets.

15. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
This allows you to ensure you’ve
designated a person to take over
right away to protect your assets in
case something happens to you.

16. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGE:
A Living Trust Allows Assets to Transfer
Outside Probate

17. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
When you create a living trust,
assets in the trust may transfer
outside of the probate process.

18. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
This can facilitate a faster transfer
of assets after death so heirs receive
assets sooner and can begin
managing those assets sooner.

19. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
ADVANTAGE:
You Don’t Have to File a Separate Tax
Return

20. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
When you create an irrevocable
trust, the trust often has to file a
separate tax return.

21. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
This is not generally the case
when a living trust is created,
so you save on tax compliance
costs and paperwork.

22. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
DISADVANTAGE:
Living Trusts Provide Limited Asset
Protection

23. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
A living trust does not provide
the same level of asset protection
as an irrevocable trust.

24. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
Your assets in the trust can still
count for purposes of determining
if you qualify for Medicaid to
cover nursing home care.

25. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
A living trust won’t shield
assets from being counted for
estate tax purposes.

26. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
GETTING HELP WITH TRUST
CREATION

27. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
A Naples, NY estate planning
lawyer can help determine if a living
trust is the best choice or if an
irrevocable trust may be preferable.

28. 196 North Main St., PO Box 417, Naples NY 14512
1163 Pittsford-Victor Road, Suite 120, Pittsford 14534-3817
Click to visit mrobinsonlaw.com.
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