Trust
An estate planning tool, trusts are described as fiduciary relationships formed between the trust creator or a trustor and a trustee, with the trustor putting their assets under the trust’s name. In this relationship, the trustee is authorized with the responsibility to hold the title to trust creators’ estate for the benefit of the latter’s beneficiaries.
The trust entity itself is a legal document that is created to protect legal assets during the creator’s lifetime and to make sure the estate is passed on to designated beneficiaries as per the creator’s request. Other motivations for trust creation could be Medicaid planning, incapacity planning, planning for retirement, making end-of-life wishes, reduction of estate taxes, and more. Trusts can also be created to provide for and protect the financial well-being of a minor or someone with a mental or physical disability. Some people also create trusts to leave a legacy in the form of charitable giving.
Unlike wills, trust documents are more private. They are created in the presence of an estate planning lawyer and don’t have to undergo the probate process to be executed after the creator’s death. Hence, living trusts protect the privacy of the parties involved.
There are several types of trusts, as mentioned below. Each type has specific requirements and benefits for the beneficiaries and/or the trust creator.
• Revocable trusts
• Irrevocable trusts
• Asset protection trusts
• Special needs trust
• Medicaid trust
• A-B or Bypass trusts
• Pooled trusts
• Totten trusts
• Testamentary trusts
• Charitable trusts
Within this category, you’ll find yourself perusing through articles that cover topics related to trusts, the types of trusts, associated considerations, and more. This will be helpful in your research when determining whether creating a trust is the right plan of action for your estate planning needs.
There was a time when trusts were mostly used by affluent people to pass down their wealth without incurring tax obligations. Today, a trust can easily be found in an average person’s estate plan. There are several different trusts that are employed for accomplishing a number of goals and one of the most common is…
If you have been researching about securing the future of your children with special needs, spending a lot of time with other parents who are in a similar situation as yours or reading various articles about estate planning for special needs, you must have gotten the idea of putting a portion of your estate in…
If you want to pass on your belongings, big or small, to your next of kin, a trust is a great idea. There are many types of trusts depending on their specific structures and conditions. And you need to do some thorough research to decide which one is best for you based on your personal…
We receive a lot of questions related to Medicaid and irrevocable trusts. Families usually reach us in order to receive guidance when their loved ones receive an unpleasant diagnosis, or they get admitted into an old age home. Under such circumstances, people start gaining knowledge and understanding about estate planning processes in order to protect…
When two lovebirds walk down the aisle, never in their wildest dreams do they imagine that their future marriage could culminate in divorce. It may seem like a logical conclusion, with approximately 9 divorces per 1000 individuals in the state of New York, but most of us refuse to see that side of the coin…
An essential part of estate planning in NYC is preparing a legalized document with extensive details about how you want your funds to be used and distributed after you pass. One method to ensure that your last wishes are fulfilled is by creating a living trust in NYC. There are many plus points involved when…
A living revocable trust helps individuals avoid probate, and the hassles and expenses that come with it. It also allows individuals to keep their estate private, so that it is only available to their immediate family in case of their demise. This legalized document enables you to appoint a trustee who is responsible for holding…
Life treats all living beings very differently. There are some who are blessed with every possible amenity available. They walk through life without experiencing physical, social or financial complexities. This is not to say that they don’t have their fair share of troubles, but they can usually find a way through and continue on their…
In 1993, a monumental change was made by the United States Congress, affecting the landscape of estate planning. It was in that year when Congress granted special needs trusts a legal status. This allowed parents, family, and other interested parties invest in the well-being of a person with disabilities. As defined in Section 7-1.12 in…
An individual creates a special irrevocable trust in their lifetime in order to hold title to various assets that they own. This special trust is known as a Medicaid trust. It enables you to select your trustees and live peacefully in your personal property. In the New York City, the average expense of old age…