What are the Different Types of Trusts in New York?

What are the Different Types of Trusts in New York?

It can be difficult to think about one’s future, but it is important to plan ahead. When it comes to planning for your estate, there are a lot of things to consider. How do you want to divide your estate? What kind of documents will you need? It is important to educate yourself so you can plan in the best way for you and your loved ones. One of the documents you may want to create for your friends and family is a trust. Read on to learn more about the different types of trusts you can create in New York and how to go about creating and filing a trust.

What is a Trust?

A trust is an agreement between a trustor and a trustee. A trustor creates a trust leaving assets to a beneficiary. A trustee is a third party assigned to manage the assets of the trust for the beneficiary.

Why Make a Trust?

Most people aren’t aware of all that goes into estate planning. For example, most people create a will, but there are so many more documents involved in properly planning ahead. Some of these documents include a will, a trust, a power of attorney, a healthcare directive, and any other documents that may be beneficial to your estate. If you have questions about the best documents to create for your assets, contact an estate planning attorney.

What are the Different Types of Trusts?

All trusts fall into one of two categories: a revocable trust or an irrevocable trust.

  • Revocable trust: this is also known as a living trust. This allows the trustor to revoke the trust or make changes and revisions to the trust.
  • Irrevocable trust: this is legally binding. Once it is filed, the trustor cannot make any changes to it.

To figure out which type of trust is right for you, you should speak with an experienced estate planning attorney.

Just a few of the trusts you can create include:

  • 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.
  • 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.

There are many other types of trusts you can create. To learn more, reach out to an estate planning attorney with any questions. Once you are ready to begin the estate planning process, we are here to help.

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.

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