According to a Caring.com survey, only about 32.9% of U.S. adults currently have estate planning documents such as a living trust or will. Settling a deceased person's final affairs or distributing their estate to beneficiaries without a valid trust, will, or estate plan can bring about several challenges. Having a properly drafted living trust can help protect your assets, family members, and prepare for life's uncertainties.
If you need proper guidance in drafting your living trust or want to understand how estate planning works, consulting with experienced New Mexico estate planning attorneys is important. At Bischoff & Bischoff Law, P.A., we have the resources and experience to assist clients in estate planning-related matters, including living trusts, wills, and trust administration. We're available to discuss your situation, explore your options, and determine the ideal estate plan that best fits your needs and your family's best interests.
Our firm — Bischoff & Bischoff Law, P.A. — is proud to serve clients throughout Albuquerque, New Mexico, and neighboring areas, such as Rio Rancho, Sante Fe, or Valencia County, including Los Lunas and Belen.
A trust is a fiduciary relationship that allows a person (the “guarantor”) to select another person (called a “trustee”) who will handle their final affairs and manage assets upon their death or sudden incapacitation. The trustee will also help administer the estate and distribute assets to beneficiaries according to the provisions of the trust.
There are two predominant types of trusts — revocable and irrevocable.
A revocable trust or living trust is a trust that can be modified or canceled by the guarantor. The guarantor retains the benefit of all assets included in the trust while they are still alive.
An irrevocable trust is a trust that can't be modified or revoked by the guarantor. Once assets or properties are placed in an irrevocable trust, the guarantor relinquishes control over them. Likewise, the guarantor won't need to pay taxes on the trust's assets.
To draft a living trust in New Mexico, here are the steps involved:
Decide whether to create an individual or shared trust
Determine the assets and property to include in the trust
Choose a successor trustee
Decide who will be the beneficiaries of the trust
Create the trust document with the assistance of your attorney
Sign the trust document in front of a notary public
Change the title of any trust property having a title document
A trust is only legally valid and effective when created following all procedural requirements. Creating the trust without detailed guidance from legal counsel may cause conflict and invalidate the trust.
Here are some of the benefits of having a trust:
It helps bypass the expensive and lengthy probate process
It allows you to choose a successor trustee
It allows you to keep assets for minor children until a future date (i.e., until the beneficiary reaches a certain age)
It provides adequate protection for your assets in case of mental incapacitation
It gives you control over what happens to your assets even when you're unavailable
It helps maintain privacy and allows assets to be distributed to heirs and beneficiaries without the public nature of probate court
Preparing for life's uncertainties and protecting your assets can never be done too early. In the event that you become unavailable or unable to voice your opinion, your loved ones can benefit from knowing your exact wishes. When considering estate planning, you need to speak with an experienced New Mexico trusts attorney to review your options and help you decide on the ideal estate plan that best suits your unique needs.
We have devoted our careers to providing experienced legal services and comprehensive guidance to individuals and families in the legal matters of estate planning. As your counsel, we can educate you about the benefits of having a trust and help you make informed decisions. Our team will help draft your trust, estate planning documents, and strategize an effective plan for you and your loved ones. We will diligently guide you through the entire process and help you achieve your goals for transferring your property, assets, and wealth to your chosen inheritors. Our attorneys will work thoughtfully to address your needs and concerns and help you in a way that works best for you.
If you need proper guidance drafting your living trust or estate plan, contact us at Bischoff & Bischoff Law, P.A. today to schedule a one-on-one consultation. We can offer you the knowledgeable legal counsel you need. We are proud to serve individuals and families across Albuquerque, Rio Rancho, Sante Fe, or Valencia County, including Los Lunas and Belen, New Mexico.