Common Types of Trusts

A trust such as an IRA or Income trust is an entity created by law. In a trust one party, called the trustee, legally owns property transferred to him by the person making the trust, usually called the grantor. Assets in the trust are held and invested or managed for the benefit of one or more beneficiaries.

A trust can be living, which means it was established during the lifetime of the grantor, or it can be testamentary, which means it was established in a will.

Family trusts

Revocable living trusts or family trusts are trusts that can be terminated or modified at any time by the grantor for any reason. Irrevocable family trusts cannot be terminated or changed under any circumstances. Properly created trusts can maximize the amount of your estate that will flow to your relatives. One of the principal benefits for creating an irrevocable family trust is that your assets are then protected from nursing home expenses or uncovered medical expenses.

Special needs and minor’s trusts

Minor’s trusts are probably the most common types of trusts. A minor’s trust or a special needs trust can be created to provide for your minor children or incapacitated adult relatives for their care after you are gone and until they are old enough or healthy enough to care for themselves. A parent can name a trustee to be in control of the finances and to decide whether to sell or keep property, and manage assets such as real estate. The trustee is typically a family member or trusted friend who can be paid for their services out of the trust assets.

An attorney skilled in creating trusts and in estate planning can explain the consequences of choices you must make, such as whether to create a special need trust on behalf of an incapacitated adult child should you die.  The attorney can also explain the advantages of income trusts that allow parties to receive trust assets. Consulting with a trusts lawyer can help to avoid making costly mistakes and can ensure that your property and assets pass in accordance with your intentions.

Help with trusts law

Whether you have questions about revocable living trusts, irrevocable living trusts, or Staten Island IRA trusts, The Law Firm of Lance P. Armstrong in Staten Island and Brooklyn, can assist you. Contact The Law Firm of Lance P. Armstrong today at 888-721-2993 to schedule your free consultation.