Trusts
A marital trust is a type of irrevocable trust that allows one spouse to transfer assets to a surviving spouse tax free, using the unlimited marital deduction, while providing benefits not available if transferred outright. When drafting Wills for married couples, we usually include a Marital Trust to provide estate tax planning, spousal care, and […]
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Question: When my husband died, some of his assets went into a credit-shelter trust under the terms of his Last Will and Testament. I am the beneficiary of the trust during my life and when I pass away everything will be distributed to our son outright. I am concerned that by receiving the inheritance outright, […]
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Question: My mother owns her home and is considering putting it into an irrevocable trust. She is concerned that if in the future she wanted to take a Reverse Mortgage on the property, she would not be able because the house is owned by a trust, is that correct? Answer: The mere fact that a […]
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In general, when a person dies in New York, that person’s Last Will & Testament must be probated in Surrogate’s Court so that an Executor can be appointed to legally distribute assets. If there is no Will, an administration proceeding will be required and an administrator will be appointed to distribute the decedent’s assets according […]
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Question: I am a 72 year old widow. I own my house and have an IRA but have very little in cash assets, do I need a trust? Answer: Yes, you could benefit from having an irrevocable trust. For you, the main purpose of this trust would be to protect your house so that you […]
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A credit shelter trust (CST) is an estate planning tool used for married couples to help reduce, if not eliminate, estate tax due at the death of the surviving spouse. Federal Estate Tax The current federal estate tax exemption is $11.7 million. This means individuals can gift up to the federal exemption amount during their […]
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Question: My parents are concerned about protecting their home. Some people have recommended that we consider creating a trust while others have suggested that they transfer the house to my siblings and me, with my parents retaining a life estate, which is a better idea? Answer: This issue comes up often in our practice. For […]
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When creating a last will and testament or a living trust, there are certain planning techniques that can be advantageous to those who inherit your assets. One such technique is distributing assets to your beneficiaries in trust to provide them with creditor protection, which they would be unable to create for themselves. The IRS rule […]
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Question: My mother has an irrevocable trust she set up for Medicaid planning purposes. My sister is the trustee and she is paying moms bills from the trust. Is that correct? Answer: No, if the irrevocable trust was set up properly to protect your mom’s assets in case she needs long term care from the […]
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Question: Several years ago, I went to a lawyer who convinced me to do a trust. Now, I am not so sure that it was the right thing for me. Am I able to revoke a trust? Should I revoke my trust? Answer: The answer is…..it depends. The first question is whether or not a trust […]
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