Common Types of Trusts
There are many types of trusts that can help protect and distribute your assets.
- Living trust. Under New York trust law, a living trust is a type of revocable trust that you can set up during your lifetime and in which you can be the trustee. A living trust can be a flexible and powerful way to make important decisions about your assets while keeping them out of any probate in the future.
- Medicaid asset protection trust. This type of trust can protect your assets from any Medicaid costs. If you set up this type of trust in advance of your Medicaid needs, your assets are protected from Medicaid reimbursement actions.
- Marital trust. Under this type of irrevocable trust, when one spouse passes away, the marital property and assets move into the trust. The surviving spouse can still benefit from those assets even though they are in a trust. When the surviving spouse passes away, the trust is transferred to any named beneficiaries.
- AB trust. An AB trust is a tool that some married couples use to reduce their estate taxes. To learn whether an AB trust can be a part of your estate planning, contact a Manhattan trust attorney today at Chaves Perlowitz Luftig LLP.
- Charitable trust. If you have plans to use your assets for charity, a charitable trust can potentially lower your tax liability by reducing the size of your estate.
- Special needs trust. If you want to set aside assets for someone with mental or physical challenges, a special needs trust can be a valuable tool. A special needs trust can ensure the person receives assets and still qualifies for important healthcare and government benefits.
- Spendthrift trust. When you want to leave assets to someone but have concerns about their debts or their ability to manage money, a spendthrift trust can help. A spendthrift trust allows you to put protections and limits on the assets in the trust so that the beneficiary cannot access the principal.
- Tax bypass trust. Like some marital trusts and AB trusts, this type of trust is a tool for reducing a marital couple’s estate tax. A tax bypass trust allows the surviving spouse to benefit from key assets while granting tax benefits to his or her beneficiaries.
- Qualified terminable interest property trust (QTIP). QTIPs are often used to control your property after your passing. QTIPs can help your spouse maintain benefits while deferring certain taxes. Under a QTIP, your spouse can enjoy the benefits of assets even without ownership of them.
- Qualified personal resident trust (QPRT). QPRTs are specialized trusts that homeowners use to retain their home while reducing its value for tax purposes.
- Generation-skipping trust. These trusts can be a critical part of an estate plan because they can help you pass wealth to grandchildren and other younger beneficiaries while minimizing estate taxes.
- Testamentary trust. This type of trust is created as part of a will. It arises upon the death of the testator. It is often used to distribute assets where the testator has a young child and places restrictions on the assets that pass to the child.
- Irrevocable life insurance trust. Irrevocable life insurance trusts are used to keep any benefits from a life insurance policy out of an estate. This type of trust can be a valuable tool for minimizing taxes.
How Our Manhattan Trust Attorney Can Help You
Trusts are a key estate planning tool when they are properly set up and administered according to your goals and wishes. A Manhattan trust lawyer at Chaves Perlowitz Luftig LLP can handle everything you need for an effective trust, from establishing and funding trusts to handling any disputes that arise. No matter what your trust and planning needs are, our attorneys are ready to help.
The key ways that a Manhattan trusts lawyer from Chaves Perlowitz Luftig LLP can help include:
- Reviewing your assets and recommending trusts to help meet your goals
- Answering your questions and developing a trust plan that works for you
- Drafting the trust or estate planning documents you need to ensure you are all set under the law
- Examining ways to reduce taxes for you and your beneficiaries
- Handling any disputes that arise around your trusts or plans
If you are wondering how a trust could help you accomplish your goals, contact Chaves Perlowitz Luftig LLP today. Our dedicated NYC trust lawyers have decades of experience helping clients plan for their next move and beyond. Whether you need a simple trust to protect key assets or specialized trusts as part of your larger estate plan, our trust attorneys can help you craft the smart solutions you need.
For a free consultation, call us today or contact us online.
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