New York Estate Planning Attorney
A Trust is a legal document created by the Trustor and funded with the property which is owned by the creator of the Trust. The Trust is managed by the Trustee. The property which has been transferred into the Trust will be distributed according to the terms of the Trust to the beneficiaries upon the death of the Trustor.
There are several types of trusts but some of the most common ones include:
Revocable Living Trusts: With a Revocable Living Trust you are able to control the assets in the trust. You can make any changes to the trust including changing the trustees and beneficiaries and you can choose to dissolve the Trust completely if you choose to do so. A Revocable Living Trust usually becomes Irrevocable upon the death of the Trustor.
Irrevocable Trusts: Unlike a Revocable Living Trust with an Irrevocable Trust you are no longer able to control the assets within the trust. The Irrevocable Trust is most widely used to take advantage of the estate and tax benefits by ceding control over the assets.
Special Needs Trust: A Special Needs Trust is used to insure that a physically or mentally incapacitated individual can receive care above what benefits such as Medicare, Medicaid, and SSI can pay for without jeopardizing the benefits that they receive. By putting the assets into a Special Needs Trust family members can be assured that the assets in the Trust are being used to care for their loved one.