Why Setting Up a Trust Should Be Your Top Financial Resolution for 2025

As we approach 2025, many of us are thinking about our financial goals and how to better protect our family’s future. Maybe you’re planning to boost your retirement savings, start that investment portfolio you’ve been thinking about, or finally create that emergency fund. These are all excellent goals, but there’s a powerful financial tool that could help you achieve these objectives more effectively: a trust.

At Katz Law Firm, we’ve helped countless families in Cedarhurst and across New York secure their legacy through thoughtfully designed trusts, and we believe 2025 is the perfect time for you to do the same.

Why Make Trust Planning Your Priority in 2025?

We all want to ensure our loved ones are protected, not just today but well into the future. A trust isn’t just for the wealthy; it’s a versatile tool that can benefit families of all financial backgrounds. Think of it as creating a protective shield around your assets, ensuring they’re managed and distributed exactly as you intend.

The Growing Importance of Asset Protection

In today’s uncertain economic climate, protecting your assets has never been more crucial. Whether you’re a young parent planning for your children’s future, a business owner looking to secure your company’s legacy, or someone wanting to ensure your retirement savings are properly managed, a trust offers unique benefits that other financial planning tools simply can’t match.

Key Benefits That Make Trusts Worth Considering

1. Privacy and Protection

Unlike wills that become public record during probate, trusts offer privacy for your family’s financial matters. Your assets and their distribution remain confidential, protecting your loved ones from unwanted attention or potential predators.

2. Control Over Your Legacy

With a trust, you can:

• Specify exactly how and when your assets are distributed
• Protect your children’s inheritance until they’re mature enough to manage it
• Ensure your assets are used for specific purposes, like education or healthcare
• Create conditions that encourage responsible financial behavior

3. Tax Efficiency and Savings

Proper trust planning can help:

• Minimize estate taxes
• Reduce income taxes in certain situations
• Preserve more of your wealth for future generations
• Create tax-efficient strategies for charitable giving

4. Probate Avoidance

One of the most immediate benefits of a trust is avoiding the time-consuming and potentially expensive probate process. This means your loved ones can receive their inheritance more quickly and with fewer legal hurdles.

Why 2025 Is the Right Time to Act

The new year will bring significant changes that could impact your family’s financial future. Major shifts in tax policy are expected, with the Tax Cuts and Jobs Act provisions set to expire in 2025. This could mean substantial changes to estate tax exemptions and gift tax limits. Acting now gives you time to structure your trust before these changes take effect.

Beyond taxes, we’re seeing unprecedented economic pressures affecting family wealth. Inflation has pushed many investment assets to record valuations, making protection strategies more urgent. Healthcare costs continue rising at twice the rate of general inflation, threatening to erode family savings without proper planning.

Family structures are also evolving faster than ever. Remote work has scattered families across state lines, complicating asset distribution. The rise in blended families has created new inheritance challenges that require careful planning. Meanwhile, adult children face unique financial pressures, from student debt to housing costs, making thoughtful distribution planning essential.

For business owners, 2025 brings additional considerations. Changes in business valuation methods and potential shifts in capital gains treatment could significantly impact succession planning. Setting up proper trust structures now can help protect against these upcoming changes while preserving your company’s legacy.

Common Misconceptions About Trusts

Misconception #1: “Trusts are only for the wealthy.”
Reality: Trusts can benefit families of various financial backgrounds, protecting even modest assets and ensuring they’re properly managed.

Misconception #2: “Setting up a trust is too complicated.”
Reality: With proper legal guidance, creating a trust is a straightforward process that provides long-term peace of mind.

Misconception #3: “I’m too young to need a trust.”
Reality: The earlier you set up a trust, the more options you have for protecting and growing your assets for future generations.

Setting Up Your Trust: A Step-by-Step Approach

Creating a trust might seem daunting, but broken down into steps, it becomes manageable. At Katz Law Firm, we guide families through this process every day, making it straightforward and stress-free.

First: Identify Your Trust’s Purpose

Before diving into paperwork, think about what you want your trust to accomplish. Are you primarily concerned about protecting assets for your children? Minimizing estate taxes? Managing business succession? Your goals will determine the type of trust you need and how it should be structured.

Second: Choose Your Trust Type

Different situations call for different trust structures. A revocable living trust offers flexibility and control during your lifetime, while an irrevocable trust might better serve those focused on tax benefits or asset protection. Special needs trusts help provide for family members with disabilities, while charitable trusts can balance philanthropic goals with family needs.

Third: List Your Assets

Take inventory of what you’ll place in your trust. Consider your home, investments, business interests, life insurance policies, and valuable personal property. Remember, some assets, like retirement accounts, typically stay outside your trust but can name the trust as beneficiary.

Fourth: Select Your Key Players

Your trust needs several important roles filled:

• Trustee: The person or institution managing your trust
• Successor Trustee: Who takes over if your initial trustee can’t serve
• Beneficiaries: Who receives trust assets and under what conditions
• Trust Protector: Optional but recommended for long-term trusts

Fifth: Work With an Estate Planning Attorney

This step is crucial. While online trust templates exist, they can’t account for your unique situation or state-specific laws. An experienced estate planning attorney ensures your trust:

• Complies with all legal requirements
• Achieves your specific goals
• Coordinates with your overall estate plan
• Anticipates potential family dynamics
• Addresses tax implications properly

Sixth: Fund Your Trust

A trust only protects assets actually placed within it. Your attorney will help you:

• Retitle property into your trust’s name
• Update beneficiary designations
• Transfer business interests properly
• Document personal property transfers
• Ensure nothing important is overlooked

Seventh: Regular Reviews

Your trust isn’t a “set it and forget it” document. Life changes, laws change, and your trust should adapt. Plan to review your trust:

• After major life events (marriages, births, deaths)
• When tax laws change
• If you buy or sell significant assets
• Every few years, even without major changes

At Katz Law Firm, we understand setting up a trust is an important step. We guide you through each phase, ensuring your trust works exactly as intended. Our experienced team makes this process smooth and efficient, while ensuring every detail receives proper attention.

Making Your Trust Work for You

At Katz Law Firm, we believe every trust should be as unique as the family it protects. When setting up your trust, we’ll help you consider:

• Your family’s specific needs and circumstances
• Your long-term financial goals
• The types of assets you want to protect
• How you want your legacy managed and distributed
• Special provisions for children, grandchildren, or charitable causes

Creating a trust doesn’t have to be overwhelming. With over a decade of experience in estate planning, our team at Katz Law Firm can guide you through every step of the process. We take pride in making complex legal matters understandable and ensuring your trust aligns perfectly with your family’s needs.

Looking Ahead to 2025

As you plan your financial resolutions for 2025, consider making trust planning a priority. It’s one of the most meaningful gifts you can give your loved ones – the gift of security, protection, and peace of mind.

Ready to Secure Your Family’s Future?

Contact Katz Law Firm today to schedule a consultation. Let us help you create a trust that protects what matters most to you. Our office in Cedarhurst, NY, serves clients throughout New York City and surrounding areas, providing personalized estate planning solutions that grow with your family’s needs.

Remember, the best time to plan for your family’s future is now. Make 2025 the year you take control of your legacy with a carefully crafted trust.