New York Trusts: New York Estate Planning News

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Trusts in New York

Trusts are another estate planning tool that can help you manage your property during life and ensure a smooth transition after your death. To create a trust, the property owner transfers legal ownership to a person or institution called the trustee. The trustee is then expected to manage the property for the benefit of another person, such as a spouse or child.

There are many reasons to create a trust, and an experienced New York estate planning attorney can help you decide whether it should be a part of your estate plan.


Recently in Trusts Category

What is a revocable living trust?

It’s an important part of even some of the most basic estate plans. So that being said, it’s an important estate planning concept to know. So what is it?

Don’t be scared by the fact that it sounds complex. It’s actually a simple concept and one of the most fundamental pieces of an estate plan.

There are many ways to plan for your future and for your children. Those who have children with special needs sometimes have a lot more on their plates, especially when it comes to planning the future of their children.

That's what special needs trusts are for. They are essentially trusts that allow the parent to put aside a certain amount for a child with special needs.

These trusts are designed to give the child income for a set period of time without losing access to state assistance.

What are the necessary documents in an estate plan? Estate plans vary, and depending on the size of your estate, you could have either a very simple estate plan or a very complex one.

But if we go back to basics, most estate plans have a few general things in common, whether they are for small estates or multimillion-dollar ones.

Here is a list of the five must-have documents for a basic estate plan:

During tax season, you hear about all sorts of tools to help you save on taxes and help you plan your investments more prudently. If you have children, you might want to consider saving for their education.

There are several options for education savings. The three that most people consider are the custodial account, the Coverdell ESA, and the 529 Plan.

Let's look at all three.

How it Works: The QTIP Trust

Let’s talk today about the Qualified Terminal Interest Property Trust, also known as the QTIP trust. It’s a great tool to avoid paying estate tax.

The QTIP is very similar to a bypass trust, but with some tiny differences. It’s a trust that goes to your spouse when you pass away, naming your spouse as beneficiary. The spouse has the right to certain income from the trust for his or her life. Upon death, the assets in the trust go to the beneficiaries designated in the trust.

This trust is for married couples. And only a U.S. citizen spouse can be named as a beneficiary of the trust.

A young man from the Boston area recently came into a substantially large amount of cash when he won the lottery.

With that much cash on hand, we must ask -- what is his estate planning strategy?

Sandeep "Sunny" Singh of Hyannis won $30.5 million in the Mega Millions lottery this week. The 22 year old has talked about what he plans to do with the money. He chose to receive it outright in one lump sum of $23 million, reports The Boston Globe.

Diversifying your assets is an important move. It's important to invest in different areas and to have a diverse portfolio of investments.

In short-- don't put all your eggs in one basket.

If the Great Recession taught us anything, it's that you never know which one of your assets could take a plunge in value. Assets can move in tandem and that's not something you want happening in your portfolio, writes U.S. News.

The tandem effect (i.e. assets growing or declining together, in the same direction) typically happens when your portfolio deals in too many similar assets. So investing in real property and with mortgage lenders can leave a hole in your portfolio if the housing market tumbles, like it did in the Great Recession, says U.S. News.

Whitney Houston's estate is asking the court to stop paying the late singer's 19-year-old daughter, Bobbi Kristina Brown.

Relatives claim it's for her own good.

According to ABC News, the estate filed a petition in a Georgia court this week, alleging that the estate is trying to provide "security and protection" for Bobbi Kristina by limiting her access to the funds.

You’ve heard of powers of attorney, but what exactly is a power of appointment?

A power of appointment is an important concept in estate planning. It’s used quite often in trusts— revocable and irrevocable. It is essentially the power to appoint trust property.

A quick example: You form a revocable trust and the trust contains a provision that allows for a third party (Mrs. X) to withdraw or consume trust property for herself or for the benefit of another.

Tom Sims, Snowboard Creator and Pioneer, Dies at 61

Maybe you were a skater as a kid, or maybe you enjoy heading up to the mountains to snowboard in the winter. If you do, you share the same passions as Tom Sims, who created the framework for current snowboards with metal edges and high-backed bindings.

Sims was so enthralled with skateboarding after a visit to L.A. as a child that it pushed him to make ways to continue to ride a board year-round, according to The New York Times. Besides the snowboard, Sims also started Sims Skateboards, which sponsored the biggest names in skateboarding in the 70s and 80s.

Sims, 61, passed away from complications after suffering cardiac arrest. He leaves behind his sister, his wife, three children, and two step-children.