trusts in the state of new york

TRUSTS IN THE STATE OF NEW YORK

QUESTIONS, ANSWERS, AND CHOICES

TRUST BASICS

What is a trust?1

Think of a trust as an independent legal entity,

like a corporation

When you create a trust you create an entity that can own

property

The trust also allows you certain benefits that direct property ownership

does not

CREATION

Who creates the trust?2

Someone creating a trust is called a trustor, or sometimes a grantor or a

settlor

As long as you are at least 18 years old and of sound mind, YOU CAN CREATE A TRUST

MANAGEMENT

How does the trust work?3

Once you create a trustyou name someone who will act as trustee

The trustee manages all the property you transfer into the trust’s name

The trustee will also have to manage that property under the guidance of

any terms you choose to include

BENEFICIARIES

Who gets to use trust property?4

The trustee is the manager, but the beneficiaries get to benefit

from the trust property

TRUST PROPERTY

What can the trust own?5

Trustees have responsibility to manage the trust property so the beneficiaries can receive the

maximum benefit

Depending on the type of trust you choose to create,

your trust can own almost anything

The trust property itself, known as the trust corpus, is up to you to determine

FUNDING

How do you create trust?6

You create a trust by creating a written document called a trust instrument in which you include the names the beneficiaries, the

trustee, and the relevant trust terms

You will then transfer some of your property, a process called funding, into the trust’s name

MANY OPTIONS

Are all trusts the same?7

ABSOLUTELY NOTThere are so many types of trusts it’s

almost impossible to list them all

Your estate planning attorney will explain what each of them are, how they work, and what benefits they

can provide

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