Mullen and Iannarone, P.C.
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Understanding the basics of a trust

While New York residents may believe that they need a trust, this may not always be the case. Furthermore, those who want to create a trust need to choose the one that best suits their needs. One common type of estate planning instrument is the revocable living trust. It has a trustee who carries out the instructions that the document provides as well as one or more beneficiaries.

The terms of a trust may be customized to fit the needs of the individual who creates it. For instance, parents who create a trust for their children may determine when a son or daughter gets access to their inheritance. While the parents are still alive, they would be the trustees, and a secondary trustee may be named to take over when the parents pass away. The new trustee would only be able to take money out of the trust for the benefit of the children in this scenario.

It is important that a trust is properly created and properly funded. Otherwise, it may not be valid or may not work the way its creator intended it to. Those who have a revocable living trust have the right to change its terms at any time. It is also possible to revoke the trust entirely if necessary.

For some, creating a trust may be part of comprehensive estate planning. Talking to an attorney may help individuals learn more about trusts and whether or not they are right for them. If appropriate, an attorney may be able to help create a trust or review one that an individual already created. Legal counsel may also be able to review any other estate plan documents such as a will or power of attorney to ensure that they meet a person's needs.

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