Bronx & Westchester, NY Trust Attorney
Create a Plan for How Your Assets Are Managed and Passed On
A trust can be a valuable part of an estate plan for individuals who want greater control over how certain assets are managed, protected, and ultimately distributed. While trusts are sometimes associated only with large estates, they can serve a variety of purposes for individuals and families with different financial circumstances and planning goals.
At Thomas M. Denaro, Esq., we help clients understand whether establishing a trust makes sense as part of their overall estate plan. Attorney Thomas M. Denaro brings decades of legal experience to each matter and provides direct, personalized guidance based on your property, family circumstances, beneficiaries, and long-term objectives.
We assist clients in Bronx and Westchester County, NY, while also serving Nassau, Queens, Kings, Richmond, Suffolk, Rockland, Orange, Putnam, and Dutchess Counties. Whether you are beginning the estate planning process or considering adding a trust to an existing plan, we can explain the available options and help you make informed decisions.
A trust is a legal arrangement in which property is held and managed according to established terms for the benefit of designated beneficiaries. Depending on the type of trust and how it is structured, the person creating the trust may retain significant control over the assets or intentionally place restrictions on when and how those assets can be used.
Trust planning requires careful consideration. The language of the trust, selection of a trustee, ownership of assets, beneficiary provisions, and applicable New York and federal laws can all affect whether the arrangement accomplishes its intended purpose.
Call Thomas M. Denaro, Esq. at 718-863-6000 to schedule a consultation with a lawyer today.
Understanding Different Types of Trusts
There is no single trust that is appropriate for everyone. The right structure depends on what you want to accomplish and how much control you want to retain over the assets placed within it.
A revocable living trust is created during a person's lifetime and can generally be amended or revoked while the person creating it remains legally capable. Depending on how the trust is structured and funded, the creator may continue managing the assets during their lifetime and establish instructions for how they should be handled after death. One potential advantage of a properly funded living trust is that assets held by the trust may pass according to its terms without going through probate. However, simply signing a trust document does not automatically place property into the trust. Assets generally must be properly transferred or titled to the trust when appropriate.
An irrevocable trust operates differently. Once properly established, the creator generally gives up certain rights to modify or control the trust and its assets. Irrevocable trusts may be considered for particular estate planning, asset preservation, tax, or long-term planning objectives. Because relinquishing control can have significant consequences, these arrangements should be carefully evaluated before they are created or funded.
Trusts can also establish detailed instructions for beneficiaries. For example, a trust may provide for assets to be distributed at certain ages, under particular circumstances, or over a period of time rather than in a single distribution. This can be useful when planning for younger beneficiaries or when greater control over the timing of an inheritance is desired.
The trustee plays an important role in carrying out these instructions. A trustee is responsible for managing trust property and administering the trust according to its terms and applicable law. Selecting a trustworthy and capable person or institution to serve in this role is therefore an important part of trust planning.
Building a Trust Into Your Broader Estate Plan
Creating a trust should not happen in isolation. We consider how the trust will interact with your will, powers of attorney, beneficiary designations, jointly owned property, real estate, financial accounts, and other elements of your estate plan. When you work with our firm, you work directly with an attorney. Attorney Denaro begins by learning about your assets, family relationships, intended beneficiaries, and concerns for the future. We then explain whether a trust may help accomplish your goals and what responsibilities or limitations may accompany the particular structure being considered.
Funding is another important part of trust planning. A carefully drafted trust may not accomplish its intended purpose if assets that were supposed to be governed by it are never properly transferred. Depending on the plan, this may involve changing title to certain property or coordinating other ownership and beneficiary arrangements. Not every asset should necessarily be transferred into a trust, which is why the process should be considered as part of the overall estate plan.
Trusts and wills also serve different functions. A trust does not automatically make a will unnecessary. Even individuals with living trusts may benefit from having a will to address property that was not transferred into the trust and other matters that the trust itself does not cover.
As life changes, a trust and the rest of an estate plan may also need to be reviewed. Marriage, divorce, the birth of children or grandchildren, the purchase or sale of real estate, significant changes in finances, or the death of a trustee or beneficiary can affect whether an existing plan continues to reflect your intentions.
At Thomas M. Denaro, Esq., our goal is to make trust planning understandable rather than unnecessarily complicated. We explain the available legal tools, discuss their potential benefits and limitations, and help you develop an estate plan that reflects your priorities. Whether you are interested in managing how an inheritance is distributed, planning for the transfer of property, considering probate-related concerns, or simply looking for greater control over your estate, we can help you determine whether a trust belongs in your plan.
frequently asked questions
What is the difference between a revocable and irrevocable trust?
A revocable trust can generally be changed or revoked by the person who created it while that person remains legally capable. An irrevocable trust typically involves giving up certain rights to change the trust or control its assets. Each can serve different estate planning purposes.
Can a trust help avoid probate?
Assets properly transferred into certain trusts may pass according to the terms of the trust without going through probate. However, creating a trust document alone is generally not enough. The trust must be properly funded with the assets intended to be governed by it.
Do I need a trust if I already have a will?
A will and a trust serve different purposes and can work together as part of an estate plan. A will generally provides instructions for property passing through your estate, while a trust can govern assets that have been properly transferred to it.
Do I need a trust if I am not wealthy?
Trusts are not limited to people with substantial wealth. Whether a trust makes sense depends on your assets, family circumstances, beneficiaries, and planning goals rather than simply the dollar value of your estate.
What does a trustee do?
A trustee manages trust property and carries out the instructions contained in the trust. Depending on the arrangement, responsibilities may include managing assets, maintaining records, making distributions to beneficiaries, and administering the trust in accordance with its terms and applicable law.
Can I serve as the trustee of my own trust?
With certain types of trusts, including many revocable living trusts, the person creating the trust may also serve as the initial trustee. Different rules and considerations can apply to other trust structures.
Can a trust control when beneficiaries receive an inheritance?
Depending on how it is drafted, a trust can establish conditions or schedules for distributions. For example, assets may be distributed at certain ages, over time, or according to other instructions established in the trust.
Have Questions About Estate Planning?
Whether you are creating a will, establishing a trust, protecting your assets, or preparing powers of attorney, thoughtful planning can help protect your wishes and provide greater clarity for the future. Call Thomas M. Denaro, Esq. at 718-863-6000 today to speak directly with an attorney about creating an estate plan tailored to your needs and goals. 24/7 Phone Availability | Hablamos Español.