5 Types of Trusts in New York

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Estate plans with trusts offer the grantor a great deal of flexibility when distributing their assets. They can choose who receives funding from the trust, including charities, family members with special needs, and even pets. You may want to create a specific kind of trust depending on your situation and goals. Feel free to call our talented legal team for more information about trusts and how they can benefit your loved ones.

Irrevocable Trust

In an irrevocable trust, your funds have the utmost protection from creditors and unnecessary taxes. These trusts can protect your home, bank accounts, and other investments. However, an irrevocable trust is very difficult to change once created. Please speak with a trusted legal representative before creating an irrevocable trust or any kind of trust.

Charitable Trust

Charitable trusts allow the grantor to leave an inheritance for their beneficiaries and provide funding for their preferred charity. These trusts offer tax benefits during the creator’s life and for family members following their death.

Special Needs Trust

A special needs trust is ideal for those who have special care needs or have a family member they wish to support who has special needs. When set up correctly, the funds from the special needs trust will not affect the individual’s qualifications for Medicaid and Social Security benefits.

Revocable Trust

Revocable trusts are powerful tools in an estate plan because they help protect the estate from probate, which can be a costly and time-consuming process. While these trusts don’t offer much protection during the grantor’s lifetime, they give the added benefit of allowing the grantor a certain amount of control over their assets. Revocable trusts may also be changed, amended, or revoked.

Irrevocable Life Insurance Trust

With an irrevocable life insurance trust (ILIT), the grantor is protected from paying unnecessary taxes on their estate if the estate exceeds federal or New York estate tax exemptions. Your beneficiaries receive their inheritance without losing so much to the state for taxes.

Should You Hire Our Estate Planning Attorneys?

If you think creating a trust may be the right course for you, please get in touch with our trusts attorneys right away. Taking the simple step today of opening a trust fund could save your loved ones a great deal of stress and money in the future.

Our law firm was founded by a husband and wife team who witnessed firsthand the devastation of a family member who died without a proper estate plan. Now, we dedicate our time and energy to helping others avoid this same tragedy. Please contact us immediately to schedule your assessment at 516-928-6594.

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