Founder
A trust is a fiduciary arrangement that gives a third party, called a trustee, the ability to hold assets on behalf of a beneficiary. Trusts are flexible instruments that can be arranged in many ways and can specify exactly how and when your assets transfer to beneficiaries. The primary benefit of all types of trusts is the avoidance of probate, which can be a lengthy and expensive process. The types of trust you choose to include in your estate plan will depend on your specific goals and circumstances. In this article, we provide an overview of the different types of trusts available in Florida and New York.
Revocable Living Trusts
A revocable living trust is legal document that determines how your assets will be handled after death. A revocable living trust can be canceled or amended at any time, which provides a level of flexibility that isn’t available with some other kinds of trusts. In addition, a revocable living trust allows you to continue using the assets that were transferred to the trust. A revocable living trust can also give someone the authority to make financial decisions on your behalf should you become incapacitated due to injury or illness.
Irrevocable Trusts
An irrevocable trust is a legal document in which you relinquish control over assets to the trust. This means that you lose the ability to directly recover or manage the assets after placing them in the trust. One advantage of this is that it protects the assets from creditors and reduces your overall estate value, which in turn serves to lower your estate taxes. As opposed to a revocable trust, an irrevocable trust can’t be amended, modified, or terminated without a court order or permission of all the trust’s beneficiaries.
Special Purpose Trust
A special purpose trust is a trust that is created to carry out a specific purpose. This type of trust typically doesn’t have any named beneficiaries. Or, if a beneficiary is listed, it typically isn’t a specific person. Rather, with a special purpose trust, the beneficiary is often an entity, such as a business or a pet. These types of trusts are often used for maintaining a particular asset, such as a historic building or work or art; taking care of pets following the owner’s death; or charitable giving.
Contact a Florida and New York Estate Planning Attorney
In order to determine whether a trust is the right choice for you and your family, you should contact an experienced Florida and New York estate planning attorney for assistance. At the Law Office of Angela Siegel, attorney Angela Siegel provides comprehensive estate planning services to residents of Florida and New York. When you contact Angela Siegel, she will guide you through the estate planning process and take the necessary steps to ensure that you and your family are prepared for life’s twists and turns. So, if you are ready to take the steps necessary to protect you and your family, please contact us today to schedule a free initial consultation.