Estate planning is a different experience for everyone, but there are similar concerns that come with creating a trust and will. Every estate planner in New York must consider their options when it comes to different types of trusts. You should learn about the four basic types of trusts to consider: living, testamentary, revocable and irrevocable.
Living trust
A living trust is a written agreement made while you are alive to decide who receives your property and belongings after your death. You are allowed to retain total control over the estate. Its terms are revocable and may change as an individual’s life events change.
Testamentary trust
A testamentary trust is made after a person dies. The details of the trust are outlined in the last will and testament. Some wills contain one or more testamentary trusts.
Revocable and irrevocable trusts
A trust that is revocable could change at any time during the trustor’s lifetime. An irrevocable trust has details that cannot be changed or revoked.
Choosing the right trust
Proper estate planning relies on your current knowledge of trusts, charitable giving and tax planning. Choosing the right trust mainly depends on your personal and financial circumstances. You want to make it easy to manage your personal estate, reduce taxes and distribute funds to your beneficiaries as smoothly as possible.
Planning and creating your trust
A trust is only one type of legal document needed to transfer your assets to your beneficiaries. This trust needs to be easy to manage over time, so it’s worth considering all your options before making a decision.