There are a variety of ways that a person can set up their estate plan in the state of New York. These options allow them to protect the future of their assets depending on what their personal desires are and what they are leaving behind. One way that this can be done is with the creation of a trust. When a person is making an estate plan, it is beneficial to retain the services of an experienced New York estate planning attorney for assistance.
What is a Trust?
A person who creates a trust is known as a trustor, while the person who receives the assets within the trust is a beneficiary. In addition to this, the third-party who is in charge of managing the trust on behalf of the beneficiary is known as a trustee. Essentially, a trust is an arrangement that gives a trustee the authority to take care of the assets within a trust for a beneficiary.
What are Different Types of Trusts?
There is no “one size fits” all solution when creating a trust. Different types of trusts exist in order to allow a trustor the ability to create one that is specific for theirs and the beneficiary’s needs. The types of trusts that can be created in New York include:
- Revocable Trust: This can be modified, changed, or terminated at any moment without needing the permission of the beneficiary.
- Irrevocable Trust: This requires a trustor to give up their rights to the trust when it is created, meaning they cannot change or terminate it at any point.
- Irrevocable Life Insurance Trust: This allows a trustor to remove their life insurance from the estate plan, allowing the beneficiaries to be free from the taxes placed on it.
- Charitable Trust: There are two types of charitable trusts. A charitable leads trust allows the individual’s choice of charity to receive interest from the financial gift for a period of time, then the remaining assets can go to other beneficiaries. A charitable remainder trust allows charities to receive a trust’s assets 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 ensure they can receive the financial support and assistance they need throughout their life without losing government benefits.
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.