One of the steps that you will take when creating a comprehensive estate plan is to research the direct types of trusts available to you. If you are interested in creating a trust, but still do not know which kind of trust is best for you, continue reading to learn the details of the different types available to you. Reach out to our experienced estate planning attorney for guidance with this process. We are prepared to walk you through the steps ahead to draft a comprehensive estate plan that considers you and your wishes and best interests. To learn more about how we can assist you with this process, contact our firm today to schedule your initial consultation.
What is a trust?
A trust is an alternative way to pass assets to a beneficiary. A trust provides a third party (called a trustee) the authority to hold assets on behalf of a beneficiary. The trustee’s responsibility is to manage assets for the beneficiary.
The ownership of property or assets must be legally transferred to the trustee from the owner of the property or asset (the settlor). The trustee will then transfer the asset to the beneficiary once the settlor passes.
What kind of trust is right for you?
The two primary types of trusts available are revocable and irrevocable trusts. The details of each trust will determine which is best for you:
- Revocable Trusts: Revocable trusts can be modified or terminated by the grantor at any time as long as the individual who created the trust is of sound mind and has the ability to competently handle their own affairs without the permission of the beneficiary.
- Irrevocable Trusts: Irrevocable trusts generally require grantors to revoke their rights to the ownership of the trust. This means that the trust can’t be terminated or changed without the beneficiary’s explicit permission.
Below is a further list of the many trusts available to you. Depending on if you wish to leave money or property to a family member, leave assets to a charity, or care for a pet, there is a trust for you. The numerous trusts that can meet your needs are as follows:
- Pet trust
- Special needs trusts
- Life insurance trusts
- Asset protection trusts
- Charitable leads trusts
- Generation-skipping trusts
- Supplemental needs trusts
- Inter vivos trusts
- Charitable remainder trusts
- Testamentary trusts
- Qualified personal residence trusts
Contact Our Firm
Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.