Setting up a trust can be tricky. You may know how you would like your property divided but the legal jargon can be difficult to understand.
New York trust laws offer various estate planning options depending on your situation. Creating a trust will ensure your loved ones have the right to your property when you pass.
The purpose of a trust
A trust serves one main purpose: to protect your property from ending up in the state’s hands. Also, you can create a trust for any lawful purpose. This means you don’t have to be specific about the reason for producing your trust.
Types of trusts
Now that you know the purpose of a trust, what are the most common trust laws New York provides to ensure your property stays with those you choose once you pass?
- Lifetime trusts: According to New York state laws, a lifetime or “living” trust is created by an individual 18 years or older and still alive. You cannot create a lifetime trust for someone upon death through their will. This style of trust allows you to dispose of any estate help in your ownership of that property. All lifetime trusts are permanent unless it specifically states that the trust can become nullified.
- Testamentary trusts: A testamentary trust is also permanent unless the trust states that in can become nullified. The difference between a lifetime and a testamentary trust is that a testamentary trust will not become effective until you pass.
- Charitable trusts: A charitable trust also gives you the freedom to choose people, organizations and/or pets that will be the recipients of your property. Charitable trusts dispose of property for various purposes, including: religious, charitable, educational or philanthropic. This style of trust cannot become invalid due to the uncertainty of those defined as beneficiaries.
- Honorary pet trusts: Want to create a trust for your pet? Go right ahead. Pet trusts make sure the care of your pet is valid under New York trust law. An honorary pet trust becomes invalid at the end of 21 years or if the trust doesn’t cover any still living pets.
Revoking a trust
As the creator of the trust, you may only remove or amend the whole or parts of a valid trust with the written consent of your beneficiaries.
A trust can help secure your property and control how it’s divvied up when you die. Learn the ins and outs of trust creation, the various styles of trusts and revocation so you’re prepared when the day comes to secure your property.