trusts in the state of new york
DESCRIPTION
A more in-depth look at trusts – what they are, what they do, and why trusts are an important part of a comprehensive estate plan.TRANSCRIPT
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
