Trusts are a great way for you to make sure that someone receives money or wealth that you want them to have. A trust is a type of legal arrangement in which the assets or property is held by a deemed third party. A trusts and estates attorney can assist you in navigating what a trust is and how to set one up.
Should you find yourself in a position where you are thinking about creating a trust, here are some common reasons why others create them:
- Avoid probate court
- Maintain control of assets
- Save money on estate or federal taxes
- Avoid a declination in federal benefits (i.e. SSI if you have a disable dependent)
A trust can accomplish a variety of goals that you have in mind and is a great idea for anyone who wants to protect the assets they wish to pass down.
If you would like to learn more about a trust or if you would like to schedule a consultation with our trusts and estates attorney at Morgan Legal Group PC, call our office today at 212-561-4299.
Trusts and Estates 101: Tell Me About a Trust
When looking at a trust, there are several components to it, which include:
- Grantor: this is the individual who sets up the trust
- Trustee: this is the individual(s) who are assigned to hold the assets or property
- Beneficiary: this is the individual(s) who will receive the assets or property within the trust
- Principal: this is the assets or property themselves, such as money, home, car, etc.
Often, one of the questions that trusts and estates attorneys see is, “when will the beneficiary receive the money?” The date of distribution for a trust is set at no longer than 80 years. The trust must have a date on which it finishes, and this is when the assets would be distributed to the beneficiary.
Another common question we receive is, “how do you get money out of the trust?” It is up to the trustee to determine when payments are made and what type of money comes out of the account. The trustee will also determine which beneficiary is to receive them as well.
A trust is an excellent way to safe harbor assets or property until the intended beneficiary can receive them. Assets can be added into a trust at any time. There are specialized trusts, which allow anyone to contribute to them as well, which is ideal in a situation where multiple family members want to contribute.
Get in Touch with a Qualified Trusts and Estates Attorney Today
Trusts can be complicated to navigate if you are not familiar with them; however, with the help of a skilled and qualified trusts and estates attorney, you can have one in place quickly and with little hassle.
As the guarantor to a trust, it is your responsibility to make sure there is a beneficiary and a trustee who oversees the account.
If you need assistance creating a trust or managing it, feel free to reach out to us at 212-561-4299.