Trusts

A trust is a legal arrangement where a person, known as the grantor or settlor, transfers their assets to a trustee to hold and manage for the benefit of beneficiaries. Trusts in New York City offer various benefits, such as asset protection, estate planning, privacy, and control over the distribution of assets. They can be used to manage and preserve wealth, provide for loved ones, minimize estate taxes, and ensure the orderly transfer of assets according to the grantor’s wishes.

1. Clarity: Gain a clear understanding of how your assets will be distributed during your lifetime and after your passing.
2. Privacy: Keep your assets confidential and avoid a protracted probate process.
3. Control: Retain authority over your assets while benefiting from essential protections.
4. Tax Benefits: Unlock crucial tax advantages and reduce your estate for tax purposes.
5. Decision-Making: Maintain control over critical decisions concerning your assets.
6. Charitable Impact: Structure your assets to support charitable endeavors.

In New York City, several types of trusts are commonly used. These include revocable living trusts, irrevocable trusts, special needs trusts, charitable trusts, and testamentary trusts. Each type serves different purposes and offers specific advantages. Consulting with an experienced estate planning attorney can help determine the most suitable trust type based on your goals and circumstances.

While both a trust and a will are estate planning tools, they differ in several ways. A trust goes into effect during the grantor’s lifetime, while a will becomes effective upon the grantor’s death. A trust allows for the management and distribution of assets during the grantor’s lifetime and can offer more privacy, flexibility, and control compared to a will. Additionally, a trust generally avoids probate, while a will must go through the probate process.

Yes, in New York City, you can be the trustee of your own trust. In a revocable living trust, the grantor often serves as the initial trustee, retaining control over the trust assets and management. However, it’s crucial to consider naming a successor trustee who can step in if you become unable or unwilling to fulfill the role. Consulting with an attorney specializing in trusts can help you understand the legal requirements and responsibilities associated with serving as a trustee.

To fund a trust in New York City, you must transfer ownership of your assets to the trust. This typically involves re-titling assets, such as real estate, bank accounts, investments, and other property, in the name of the trust. It’s important to consult with an attorney and follow the appropriate legal procedures to ensure the proper transfer of assets and the validity of the trust.

Yes, a trust can help you avoid probate in New York City. When you transfer assets to a properly structured and funded trust, they are no longer considered part of your probate estate. As a result, the trust assets can pass directly to the beneficiaries named in the trust document without going through the probate process. Avoiding probate can save time, costs, and maintain privacy.