Trusts In the State of New York

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TRUSTS IN THE STATE OF NEW YORK

• Questions, Answers, And Choices

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Trust Basics
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What is a trust?
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Think of a trust as an independent legal entity,
like a corporation
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When you create a trust you create an entity
that can own property
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The trust also allows you certain benefits that
direct property ownership does not
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creation
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Who creates the trust?
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Someone creating a trust is called a trustor, or
sometimes a grantor or a settlor
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As long as you are at least 18 years old and of
sound mind, you can CREATE A TRUST
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management
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How does the trust work?
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Once you create a trust you name someone who will
act as trustee
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The trustee manages all the property you transfer
into the trusts name
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The trustee will also have to manage that
property under the guidance of any terms you
choose to include
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beneficiaries
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Who gets to use trust property?
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The trustee is the manager, but the beneficiaries
get to benefit from the trust property
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Trust property
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What can the trust own?
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Trustees have responsibility to manage the trust
property so the beneficiaries can receive the
maximum benefit
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Depending on the type of trust you choose to
create, your trust can own almost anything
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The trust property itself, known as the trust
corpus, is up to you to determine
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funding
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How do you create trust?
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You create a trust by creating a written document
called a trust instrument in which you include
the names the beneficiaries, the trustee, and the
relevant trust terms
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You will then transfer some of your property, a
process called funding, into the trusts name
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Many options
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Are all trusts the same?
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Absolutely notThere are so many types of trusts
its almost impossible to list them all
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Your estate planning attorney will explain what
each of them are, how they work, and what
benefits they can provide
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