Because trusts have specific legal requirements in order to be valid, Bronx estate planning lawyers usually help individuals by drafting these documents. Bronx estate planning attorneys can also explain the benefits of using trusts.
A trust is a legal arrangement in which the person who holds legal title to certain assets, the grantor, asks another individual or entity, the trustee, to hold legal title to the assets. These assets are held for the benefit of a particular individual or group of individuals: the beneficiaries.
Parties Involved in Trusts
The settlor or grantor is the individual who establishes the trust. More than one person can be a settlor on a trust. The trustee manages the trust property. The beneficiary is the person who benefits from the creation of the trust. In some cases, the settlor, trustee, and beneficiary may all be the same person. For example, the settlor may create the trust, name himself or herself as the person to manage the trust, and ultimately benefit from the income or assets in the trust.
In order to create a legally valid trust, Bronx estate planning lawyers can explain that a trust is created when one person transfers legal ownership of certain assets to another individual. The second individual has the obligation to hold the items in trust and to handle the assets for the benefit of another individual or set of individuals.
Types of Trusts
There are many varieties of trusts. An inter vivos trust is one type that is established during the grantor’s lifetime. Irrevocable inter vivos trusts are perhaps the least common kind. They are generally used to protect individuals from creditors. Revocable inter vivos trusts are primarily used to help manage the assets that are part of the trust, and can be changed at any time during the grantor’s lifetime. A testamentary trust is established as part of a settlor’s will, and does not become active until the testator dies, or at another point after the decedent’s death.
If you would like assistance in creating a trust, or would like more information on this topic, contact our Bronx estate planning attorneys at 718-994-1640.