From revocable living trusts to charitable remainder trusts to celebrity trusts gone wrong, trusts are one of the most misunderstood estate planning tools. In the right hands, however, trusts can be one of the most powerful tools. Ahead of creating an estate plan, it’s important to consider some important details about trusts. To help you do just that, we’re bringing you the facts and debunking some of the common myths about Trusts & Estate Planning.
- What is a trust? A trust is a document giving you, another person, or an institution the power to hold and manage your money for your benefit or the benefit of another person. The person who creates the trust is called the “grantor” or the “settlor.” The person managing the money and property is called the “trustee,” and the trustee can be you or someone else. The person who receives the money or property from the trust is called the “beneficiary.” The money and property in the trust are called the “trust assets.” The trustee must follow the instructions in the trust document describing how to manage, distribute trust assets to the beneficiaries and how long the trust lasts.
- Who is the ideal candidate for a trust? EVERYONE. Despite the common misconception that trusts are only for the wealthy, anyone 18 years or older with a sound mind is an ideal candidate for a trust.
- What are the benefits of a trust? Unlike a will, which is used to give property away after your death, a trust can manage and protect your money and property both during your lifetime and after your death.Trusts can keep your assets out of probate, preventing potential court delays or judicial interferences and allowing your estate to be settled in a shorter period of time. An effective trust allows you to tell your loved ones of your final wishes and avoid the types of family disputes that can turn into court battles.
- What assets can be transferred to a trust? ALMOST EVERYTHING. You can put most of the assets you own into a trust, such as money, bank accounts, stocks, bonds, real estate, life insurance policies, vehicles, furniture, artwork, jewelry, writings, etc. Nevertheless, it’s always important to check if the jurisdiction where the asset is located allows such asset to be held in trust. If you are going to own something in the future, you can also put your interest in that property into the trust.
- How is a trust created? At Chaves Perlowitz Luftig LLP, we will listen carefully to your goals and help you build a plan that protects your assets and your legacy. Our NYC trust attorneys, Chris and Talita, have decades of experience helping clients set up trusts as part of the in-depth strategic planning for their entire estate and can create a comprehensive estate plan that works for you and your family.
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For a free consultation and to learn how our trust and estate planning lawyers can help you with a trust in New York, email Talita Araujo (ta@cpllawfirm.com) or Christian Curtis (cdc@cpllawfirm.com).
