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Trusts and Trust Administration

There are two categories of trusts that we provide: Will Trusts and Lifetime Trusts

Will Trusts

  • Children / Grandchildren Trusts

    Many people feel that an outright inheritance of significant funds is inappropriate for a young adult. As such, trusts may be included within the terms of a Last Will and Testament which allow you to indicate that the child/grandchild(ren)'s inheritance be held, in trust, until they attain an age designated within the Will. The trust may provide that the assets be used for the benefit of the beneficiary while actual control over those assets may be assigned to someone other than the beneficiary.
  • Testamentary Supplemental Needs Trust

    A Supplemental Needs Trust is an irrevocable trust authorized under New York State and Federal law. The funds in this trust serve to supplement governmental benefits (such as SSI and/or Medicaid) received by an individual. The assets of a Supplemental Needs Trust may not be considered as available resources for the purpose of determining eligibility for such benefits.
  • Disclaimer Trust (Credit Shelter Trust) for Spouse

    For married couples with larger estates, a Disclaimer Trust provides a married couple the opportunity to utilize the estate tax exemptions of each spouse while giving the surviving spouse the opportunity to decide how much he or she shall receive from the deceased spouse's estate. Any assets disclaimed or renounced by the surviving spouse are held in trust for the benefit of the surviving spouse. The trust assets are distributed to the ultimate beneficiaries (example: children) only upon the death of the surviving spouse. A Disclaimer Trust can result in significant estate tax savings.

Lifetime Trusts

  • Irrevocable Life Insurance Trust Agreement (ILIT)

    A Life Insurance Trust is a wealth replacement vehicle by which the grantor gifts money to the trust and the trust, in turn, buys a life insurance policy on the life of the grantor. When the grantor dies, the life insurance proceeds are paid to the trust and distributed to the beneficiaries designated within the trust. The value of the life insurance policy is not included in the grantor's estate because it was not owned by the grantor.
  • Intervivos (Living) Charitable Remainder or Charitable Lead Trust

    This trust is established for the benefit of a charity and allows the grantor to receive an immediate income tax deduction for the charitable contribution. The trust may be designed to create an income stream rather than a lump sum. The trust assets are excluded from the grantor's taxable estate at death, thereby lessening the grantor's estate tax liability. At the death of the grantor, the charity receives the trust assets. This is a useful tool for dealing with highly appreciated assets. This tool is well suited for charitably-minded individuals who desire significant estate and income tax advantages and benefits.
  • Standard Intervivos (Living) Irrevocable Trust

    Assets placed into an Irrevocable Trust provide a means in which the assets are actually removed from the grantor's name and control while they continue to be held for the benefit of the grantor.  Once created, an Irrevocable Trust cannot be amended or revoked. Upon the death of the grantor, the assets are distributed to the named beneficiaries (example: children) pursuant to the terms of the trust. The trust can provide consolidation of assets and ease of management. The probate process is not required for distribution of such trust assets.
    This can be a useful tool in many situations, including a second marriage situation. For example, spouses can place assets into an Irrevocable Trust which will serve to benefit the surviving spouse during his or her lifetime. However, upon the death of the surviving spouse, the assets are distributed to the named beneficiaries. This type of trust is also useful to protect assets for a spendthrift or minor beneficiary.
  • Intervivos (Living) Revocable Trust

    A Revocable Living Trust is a device which is designed to avoid probate for all such trust assets while providing for the trustees to continue to manage and control such assets. A Revocable Living Trust creates a flexible and efficient method to distribute assets after your death and can serve to protect against the necessity for guardianship proceedings if you become incapacitated.  However, a revocable trust does not protect assets from your creditors and is not recommended for Medicaid planning.
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