There are many steps involved in an estate plan. One of the most important components are trusts. Keep reading on to learn more about the various types of trusts and contact our firm today to get started on yours with one of our skilled New York estate planning attorneys.
What is a trust in New York?
A trust is an arrangement that permits a person to select a trustee and provide them with the ability to take care of their assets until the beneficiary inherits them. It is important to understand that the individual who creates a trust is known as a trustor. The individual who receives the assets within the trust is known as a beneficiary. A third party’s objective is to manage the trust on account of the beneficiary.
What are the different types of trusts I can create?
In New York, courts acknowledge that everyone comes from various different circumstances. As a result, there are many types of trusts that were created to suit most individuals and their unique situations. Some of the most common trusts that are probable in New York include:
- Revocable Trust: This kind of trust is the most common choice for trustors because it can be modified, changed, or terminated at any time without the need for the beneficiary’s approval.
- Irrevocable Trust: This requires a trustor to surrender their rights and access to the trust at the exact time that it is created. This suggests they cannot change or terminate it at any point.
- Irrevocable Life Insurance Trust: This authorizes 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.
- Special Needs Trust: This applies to when a loved one with a disability is chosen by a trustor to make sure they receive the financial support they need throughout their life.
- Charitable Trust: There are two classifications of charitable trusts. A charitable trust allows the individual’s charity preference 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 authorizes charities to receive the assets in a trust at the end of its term. Until then, the donor receives interest in the gift.
If you have questions or concerns about the various types of trusts, do not wait to contact our seasoned estate planning attorneys today to learn more. Our firm is equipped with the experience and knowledge needed to ensure that you and your family’s future is protected.
Contact our Firm
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.