Five Benefits of a Testamentary Trust You Should Consider

A testamentary trust can be an exceptionally useful tool for many people trying to plan their estates. However, it is not necessarily appropriate for everyone, and you should consider the benefits carefully, with the guidance of an experienced attorney, to see if it works for you. Here are five benefits of a testamentary trust you should consider:

  • You can put your property in the hands of someone you trust
    • One of the biggest advantages to a testamentary trust is that the property will be managed by a trustee, someone designated by you to watch over the property on your behalf when you pass away. This trustee then has a responsibility to ensure the property in the trust is properly managed. This way, you know anything you place in the trust will be properly taken care of when you pass away.
  • You can plan for the management of assets for minors or other dependents
    • A testamentary trust is also excellent for managing property on behalf of minor children or other dependents. Since minors cannot manage property themselves, a trustee can keep it safe for them, and ensure it is appropriately managed and invested as appropriate. This way you ensure that their inheritance will be safe for them when they become of age.
  • Testamentary trusts are protected from many taxes
    • Another major advantage is that the assets held in a testamentary trust are protected from many types of taxes. For example, money and property passed down through a will may be subject to estate or gift taxes, depending on the amounts involved. The assets held in the trust, however, will be largely exempted from that, saving more of it for your beneficiaries.
  • Creditors cannot easily access property held in a testamentary trust
    • If you owe any money to anyone when you pass away, they will almost certainly attempt to have their debts satisfied by suing your estate. Normally, it is difficult to stop creditors from satisfying their debts from an estate with assets, but a testamentary trust can protect against this scenario. Typically, creditors cannot access assets held in a trust, meaning that your estate remains safe.
  • Property in a testamentary trust is non-probate
    • Finally, any property held in a testamentary trust is considered to be non-probate. This means that the property avoids much of the normal probate process, and can be transferred over to your beneficiaries easier. However, the best way to see if a testamentary trust can help you is to speak to a lawyer with experience handling estate law matters.

Whether for yourself or for a loved one, estate and elder law planning can be overwhelming and emotionally taxing. The legal professionals at Hobson-Williams, P.C. will advise you on the options available to you, and help you establish a plan that best suits your needs. Call (718) 210-4744 or visit our contact page to speak to one of our attorneys and learn how Hobson-Williams, P.C. can help you gain the peace of mind that comes from being prepared for the future.

Written by Tanya Hobson-Williams

Appointed to the bench by the Board of Trustees in 2008, and elected in 2009, Tanya Hobson-Williams was the first African-American Female Justice in the Incorporated Village of Hempstead. Tanya Hobson–Williams obtained her B.A. in Government and Politics from St. John’s University and her law degree from Benjamin N. Cardozo School of Law.

Tanya Hobson-Williams has an active elder law practice assisting senior citizens in obtaining Medicaid for Home Care and Nursing Home Care. She routinely lectures at senior citizen centers, assisted living facilities, law schools and counsels families on a variety of topics of concerns to families caring for the elderly.

homepagetwitterfacebooklinkedingoogle plus

Author: Tanya Hobson-Williams

Appointed to the bench by the Board of Trustees in 2008, and elected in 2009, Tanya Hobson-Williams was the first African-American Female Justice in the Incorporated Village of Hempstead. Tanya Hobson–Williams obtained her B.A. in Government and Politics from St. John's University and her law degree from Benjamin N. Cardozo School of Law. Tanya Hobson-Williams has an active elder law practice assisting senior citizens in obtaining Medicaid for Home Care and Nursing Home Care. She routinely lectures at senior citizen centers, assisted living facilities, law schools and counsels families on a variety of topics of concerns to families caring for the elderly.

One thought on “Five Benefits of a Testamentary Trust You Should Consider”

  1. Thanks for mentioning that testamentary trusts will exempt items from taxes. My husband and I want to create a trust for our children and distribute our assets. It’d be good to hire a trust lawyer to help explain these things to us in more detail.

Leave a Reply

Your email address will not be published. Required fields are marked *


The reCAPTCHA verification period has expired. Please reload the page.

Testimonials

“I want to take this time to thank Tanya and Keith for their professionalism and their ability to keep me calm during this process. Tanya was very helpful in explaining the whole guardianship process and my next steps. Despite my numerous emails, I never felt ignored or that they were growing weary of me. Even after being granted guardianship when I had an issue with the bank releasing money Tanya stayed calm and found a way to get what I was entitled to. I hope I never need to do this again but if I do, I will definitely come back to Tanya and her team. Thank you Thank you Thank you. Love from Bermuda.”

-K. Durham.
(An attorney in Bermuda transferring a Bermudian guardianship to NY)

Read More »

  • Elder Law Attorney Serving Queens Bronx Brooklyn

    Elder Law

    Elder Law encompasses a broad range of legal matters. It is important for everyone, regardless of age or health, to plan for the future.

  • Guardianships Attorney Serving Queens Bronx Brooklyn

    Guardianships

    The legal system recognizes that some adults, whether due to disease, dementia, mental deterioration, or disability, are unable...

  • Medicaid / Medicare Fraud Attorney Serving Queens Bronx Brooklyn

    Medicaid / Medicare Fraud

    Medicaid is a joint state and Federal program that provides insurance to individuals based upon their income and resources, while Medicare...

  • Reverse-Mortgage Foreclosures Attorney Serving Queens Bronx Brooklyn

    Reverse-Mortgage Foreclosures

    Reverse mortgages are becoming an increasingly popular way for aging homeowners to refinance...

  • Landlord-Tenant Attorney Serving Queens Bronx Brooklyn

    Landlord-Tenant

    Landlord Tenant law can be a complex and confusing subject. Disputes over leases and rent payments are often emotionally...

  • Business Law Attorney Serving Queens Bronx Brooklyn

    Business Law

    From the initial startup of your business to any issues you may encounter along the way, you can rely on Hobson-Williams, P.C. for effective...

  • Collections Attorney Serving Queens Bronx Brooklyn

    Collections

    Hobson-Williams, P.C. has a full-service debt collections department, with experienced debt-collection attorneys who will...

  • Real Estate Transactions Attorney Serving Queens Bronx Brooklyn

    Real Estate Transactions

    Many people question why they need an attorney to purchase or sell a home.

Litigator of the Year
Women-Owned Law Firm
Long Island's 50 Top Women
Minority-Owned Law Firm
Brooklyn Bar Association
Queens County Bar Association
New York State Bar Association
Lawyers of Distinction
Outstanding Women in Law

24 hour service
Call Toll-Free:
24 Hours a Day, 7 Days a Week

Phone: 1-866-825-1LAW
Phone: 1-866-825-1529

Queens Office:

  • 87-01 Midland Parkway, Lobby A
    Jamaica Estates, New York 11432
  • Phone: 718-210-4744
  • Fax: 718-928-2210

Brooklyn Office:

  • By Appointment Only
  • Phone: 718-210-4744
  • Fax: 718-928-2210
Skip to content