Estate Planning Trusts
Trust in “Trusts”
A trust attorney can provide valuable counsel on the different types of estate planning trusts available, and which will be the most beneficial for you and your family. A “Living Trust” is a trust that takes effect during the lifetime of its creator (known as the “Settlor” or “Grantor”). A Testamentary Trust is a trust that is created under the terms of a will and does not take effect until death. Trusts allow great flexibility in carrying out your wishes.
Since Living Trusts are created during one’s lifetime, they can be either revocable or irrevocable. Irrevocable Trusts are typically created for Medicaid planning purposes or to obtain favorable income tax and/or estate tax benefits. For example, a “Medicaid Irrevocable Asset Protection Trust” is typically used to protect an individual’s home, condominium or cooperative apartment, and an “Irrevocable Life Insurance Trust” can remove all life insurance proceeds out of the taxable estate.
A partial list of benefits of trusts include:
- Protecting assets for Medicaid purposes
- Minimizing Federal and/or New York Estate Taxes
- Providing for the care of an individual with special needs
- Providing for the care of a minor
- Avoiding Probate
- Insuring that your assets will be properly managed and maintained in the event of incapacity, and after death
- Providing for a spendthrift child