What to Know About Trusts in New York

What to Know About Trusts in New York

When it comes to estate planning, there are a number of important documents you may need to create. One way to handle your assets is through a trust. Read on to learn more about trusts and the different types available in New York.

Who is Involved in a Trust?

Simply put, a trust is an arrangement that gives a trustee the right to take care of the assets within a trust until the beneficiary can inherit them. The beneficiary is the individual receiving the funds and the trustee is the person who handles the funds until that time. 

Types of Trusts Available in New York?

Everyone’s situation is different. As a result, there are a number of different trusts you can create for your unique situation. In New York, you can create the following types of trusts, among others: 

  • Revocable Trust: This is a common choice because it can be modified, changed, or terminated at any moment without the permission of the beneficiary.
  • Irrevocable Trust: This requires a trustor to give up their rights to the trust when it is created. This means they cannot change or terminate it at all.
  • Irrevocable Life Insurance Trust: This allows a trustor to remove their life insurance from the estate plan so the beneficiaries are free from any 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. When it ends, the remaining assets may go to family or other beneficiaries. A charitable remainder trust allows charities to receive a trust’s assets at the end of its term. Until the end, the donor receives interest on the gift.
  • Special Needs Trust: This can be created for a loved one with a disability to make sure they receive the financial support they need throughout their life.

If you are interested in creating a trust, contact our firm to discuss your options with an experienced attorney. We are here to walk you through the process every step of the way.

Contact Our Experienced Firm Today

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.

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