What is Estate Planning?
Estate Planning refers to a wide variety of tools, techniques and strategies designed to maximize a decedent’s net worth by the time of death, and transfer those assets to children, grandchildren, friends, charities or other not-for-profit organizations, in an orderly and tax efficient manner. Minimizing probate costs and income and estate taxes at death is one of the most important components of Estate Planning. Many people think of “Estate Planning” as referring to a Last Will and Testament, and a Trust; a Power of Attorney and Health Care Proxy. And those are the fundamental tools of Estate Planning, but the subject is actually much broader.
What is Trust
A Trust is a legal entity allowed to be formed under the laws of the State of New York to hold assets (money or property). A trust can be used in an unlimited number of ways, and there are many hundreds of types of trusts. To simply the explanation, it’s easier to think of a trust like a corporation. A corporation is a legal entity which owns property. And the stock of the corporation is then owned by one or more persons. A trust is similar: a trust also can own property (bank accounts, investment accounts,