Trusts are legal entities that you can use to order your affairs in life and after death. There are many different kinds of trusts and each provides a unique advantage to the trust creator.
One commonly used trust that provides substantial estate tax benefits is the ”Irrevocable Life Insurance Trust” (ILIT). When properly drafted and managed, an ILIT will remove life insurance policy proceeds from your gross estate, thereby reducing estate tax liability. If you have life insurance of any kind, you should ask your attorney about an ILIT.
Another frequently used trust is the revocable trust, which is designed to, among other things, avoid probate and provide continuous asset management. If you own property out of state or actively manage your brokerage account(s), you should ask your attorney about setting up a revocable trust.
Call Alexander Hakopian, Esq. at (212) 868-9688 to discuss whether you could benefit from setting up a trust.