Discover the Benefits of a New Hampshire Living Trust
Many New Hampshire residents believe that estate planning solely involves the creation of wills; however, another essential component of estate planning is the establishment of living trusts. If you have not yet discovered what a New Hampshire living trust has to offer, please continue reading.
In its most basic definition, a living trust is defined as a legal arrangement in which one individual, named as the trustee, is entrusted with the legal titles to the property and assets of another individual, referred to as the beneficiary. An individual can even name themselves as the trustee of their own living trust. In a court of law, it is not uncommon to hear of living trusts referred to as inter vivos.
Possessing a living trust is not required by New Hampshire state law; however, it does offer several advantages. First and foremost, it ensures that your wishes will be carried out after your passing. Secondly, it ensures that your family members and loved ones will be spared the monetary expenses and months of delays that are often associated with probate court proceedings. It should be noted that the state of New Hampshire does not utilize the Uniform Probate Code, a procedure designed to simplify the probate process. Therefore, if you would like to avoid the complex probate proceedings of New Hampshire, then it might be in your best interests to establish a living trust.
Be aware, that in the state of New Hampshire, even if you establish a living trust, you will still need to create a will. In essence, the creation of a will provides a sort of backup plan for any property or assets that are not listed in your living trust. For example, if you were to acquire a new home later in life, but neglect to add it to your trust before your passing, then this property will not be distributed according to the dictation of your trust. However, the will can be used to dictate to whom this property is passed on to.
Although it depends upon the type of living trust you create, in the state of New Hampshire, a living trust could potentially reduce the amount of estate taxes that must be paid on your estate after your passing. A basic, probate avoiding living trust will not produce any effect of federal estate taxes; however, more complex types of living trusts, like an AB trust, can significantly lower the amount of federal taxes that must be paid for individuals who possess a lot of valuable property and assets.
There are a number of different types of living trusts to choose from. Some of the lesser known options asset protection trusts, credit shelter trusts, constructive trusts, Totten trusts, and special needs trusts. However, in general, the two most utilized types of living trusts are revocable and irrevocable trusts. Simply put, a revocable trust is one in which the grantor reserves the right to modify or revoke the trust, or amend any of its current provisions, after the establishment of the trust. By comparison, an irrevocable trust requires the grantor to surrender the right to modify the trust after the date it becomes effective.
If you are interested in learning more about how a New Hampshire living trust can benefit you, please contact our law offices today for a free consultation. In addition to our experienced and professional lawyers, we maintain contacts with an extensive network of professional financial planners, tax advisors, medical professionals, and other similar professionals. If required, their services will be called upon to create a living trust that adequately meets your needs. Here are just a few of the elements we will consider when creating a personalized estate plan for you:
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