When it comes to estate planning, there are many different things to consider. Everyone is different, so everyone will want to plan their estate differently. The way you choose to plan your estate will depend upon your assets, your family relationships, and more. As a result, there are many different ways to plan and lots of documents to consider. One of the documents many people create when it comes to estate planning is a trust. Read on to learn more about the different kinds of trusts in New York and how to create one.
What is a Trust?
Simply put, a trust is a contract between a trustee and an estate. The parties involved are the trustor, the trustee, and the beneficiary.
Trustor: The person who creates the trust
Trustee: The third-party in charge of managing the trust
Beneficiary: The person who receives the benefits of the trust
Examples of Trusts
All trusts fall into two different categories:
Revocable: This type of trust can be altered and even revoked. It allows the trustor to make changes without the permission of the beneficiary.
Irrevocable: This type of trust cannot be altered without the explicit consent of the beneficiary
There are a lot of different trusts you may want to create. Below is a small sample of the trusts you can create:
- Asset protection trusts
- Supplemental needs trusts
- Charitable remainder trusts
- Special Needs Trusts
- Charitable leads trusts
- Generation-skipping trusts
- Life insurance trusts
- Testamentary trusts
- Qualified personal residence trusts
Why Create a Trust?
There are a lot of reasons one may want to create a trust. Some of these reasons include having the ability to pass assets outside of probates, passing assets and inheritance quicker, and saving legal costs for all parties. If you have questions about why you should create a trust, and what type of trusts you would want to create, reach out to an estate planning attorney.
How to Create a Trust?
If you wish to create a trust, you should reach out to an experienced estate planning attorney. When it comes to your future, it is important to work with the right person. You will want to work with an attorney who understands your needs, wishes, and circumstances and can help you plan in the way that will be best for you, your family, and your estate.
Contact The Lauterbach Law Firm
Drafting a will is an important step towards a comprehensive estate plan. When considering this essential step, it is important to discuss your situation with an attorney. The Lauterbach Law Firm provides effective and experienced legal services for clients in Rockland County, Westchester County, and the Lower Hudson Valley. If you are interested in scheduling a consultation with an experienced law firm, contact The Lauterbach Law Firm today.