Estate planning has many different components. One of the most important documents involved are trusts, and they are used to ensure that your assets are protected for your beneficiaries. Keep reading and contact our experienced estate planning attorneys to learn more about your options in New York.
What is a trust in New York?
A trust is an agreement that allows an individual to select a trustee and give them the ability to take care of their assets until the beneficiary inherits them. It is important to note that 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’s purpose is to manage the trust on behalf of the beneficiary.
What are the different types of trusts I can create?
New York recognizes that everyone comes from various circumstances. Because of this, there are various types of trusts that accommodate individuals and their unique situations. Some of the most common trusts that are possible in New York include the following:
- Revocable Trust: This type of trust is the most typical choice for trustors because it can be modified, changed, or terminated at any moment without the need for the beneficiary’s consent.
- Irrevocable Trust: This necessitates a trustor to give up their rights and access to the trust at the time that it is created. This means they cannot change or terminate it at any point.
- Irrevocable Life Insurance Trust: This enables a trustor to remove their life insurance from the estate plan so that their beneficiaries are free from any taxes that are placed on it.
- Charitable Trust: There are two kinds of charitable trusts. A charitable trust allows the individual’s choice of charity to receive interest from the financial gift for a certain period of time. When the period ends, the remaining assets may go to other beneficiaries. A charitable remainder trust permits charities to receive the assets in a trust at the end of its term. Until then, the donor receives interest in the gift.
- Special Needs Trust: This refers to when a loved one with a disability is chosen by a trustor to make sure they receive the financial support they need during their life.
If you have questions or concerns about the different types of trusts, do not hesitate to contact our skilled estate planning firm today to learn more. Our firm is equipped with the experience and knowledge needed to ensure that you and your family’s future are protected.
Contact our Firm
If you or a loved one needs assistance creating an estate plan and wishes to speak with an experienced attorney, contact the Law Office of Andres D. Gil, PLLC today.