The future is uncertain. For this reason, it is important to create a cohesive and comprehensive estate plan. This will allow you and your loved ones to face the future feeling safe and secure. One of the most important estate planning documents is a trust. Read on to learn more about trusts in New York.
What is a Trust?
The individual who creates a trust is known as a trustor. The person who receives the assets within the trust is known as a beneficiary. A third party exists as well to manage the trust on behalf of the beneficiary. This person is known as the trustee. Simply put, a trust is an agreement that provides a trustee with the authority to take care of the assets within it until the beneficiary inherits them.
What Types of Trusts Can I Create?
Everyone’s situation is different. As a result, there are different types of trusts you can create. Some of the most common trusts available in New York include:
- Revocable Trust: This is a common choice for trustors, as it can be modified, changed, or terminated at any moment without the need for the beneficiary’s permission.
- Irrevocable Trust: This requires a trustor to give up their rights and access to the trust when it is created. This means they cannot change or terminate it at any time.
- Irrevocable Life Insurance Trust: This allows a trustor to remove their life insurance from the estate plan so the beneficiaries are free from any taxes that are placed on it.
- Charitable Trust: There are two types of charitable trusts. A charitable leads trust lets the individual’s choice of charity to receive interest from the financial gift for a period of time. When the period ends, the remaining assets may go to other beneficiaries. A charitable remainder trust allows charities to receive the assets in a trust at the end of its term. Until then, the donor receives interest on the gift.
- Special Needs Trust: This can be created for a loved one with a disability to make sure they receive the financial support they need throughout their life.
The estate planning process can feel overwhelming. Luckily, working with the right attorney can make all the difference. Reach out to our firm today to speak with an experienced and dedicated attorney. We are here to walk you through the process every step of the way.
Contact our Firm
If you or a loved one needs assistance creating an estate plan and wish to speak with an experienced attorney, contact the Law Office of Andres D. Gil, PLLC today.