Common Types of Trusts

Planning for the future often means thinking about how your assets will be handled when you’re no longer here, or if you become unable to manage them yourself. Trusts are one way to make those decisions easier. They give you more control, help avoid probate, and can offer privacy and protection for the people you care about. At Ligh Law, we work with clients to build estate plans that reflect their values and goals.

What Is a Trust?

A trust is a legal arrangement where one person, known as the trustee, holds and manages property for the benefit of another person, called the beneficiary. The individual who creates the trust is referred to as the grantor or settlor. They can be set up to take effect during your lifetime or after your death, depending on your goals. 

Trusts are widely used in estate planning to ensure assets are passed on according to your wishes, often without the need for probate. In addition to streamlining the transfer process, trusts can help preserve privacy, reduce legal complications, and provide more control over how and when your assets are distributed.

Will vs. Trust: What’s the Difference?

A will is a legal document that explains how you want your assets distributed after your death. It also allows you to name an executor to carry out your wishes and, if needed, a guardian for minor children. However, a will must go through probate—a court-supervised process that can be time-consuming, potentially costly, and part of the public record.

A trust, by contrast, can take effect during your lifetime and continue after your passing. It allows your chosen trustee to manage and distribute assets without going through probate, which helps maintain privacy and reduce delays.

Many estate plans include both a will and a trust. Trusts often provide more flexibility and control, especially when dealing with complex estates, blended families, or unique financial concerns. We’ll help you decide which combination of documents will work best for your goals and your peace of mind.

Revocable Living Trusts vs. Irrevocable Trusts

A revocable living trust lets you retain control of your assets while you’re alive. You can change it, add or remove property, or revoke it altogether. It becomes irrevocable after you pass away. These trusts are popular for avoiding probate and ensuring a smooth transition of your estate.

An irrevocable trust can’t be changed or dissolved once it’s created, at least not without court involvement. Since the assets are no longer considered yours, irrevocable trusts can offer tax benefits and safeguard assets from creditors or lawsuits.

Common Types of Irrevocable Trusts

There are many kinds of irrevocable trusts, each designed for a specific purpose:

  • Irrevocable Life Insurance Trust (ILIT): Holds a life insurance policy outside of your taxable estate.
  • Charitable Trust: Allows you to give to charity while receiving tax benefits or income during your lifetime.
  • Special Needs Trust: Provides for a person with disabilities without affecting their government benefits.
  • Spendthrift Trust: Protects the assets from being misused by the beneficiary or claimed by creditors.
  • Trusts for Minors: Manage and distribute assets over time, rather than giving a lump sum at age 18.

How Trust Administration Works and What It Involves

Being a trustee comes with important responsibilities. You may be managing assets, communicating with beneficiaries, and ensuring the trust is carried out according to its terms. We work with trustees to help them stay organized and avoid mistakes that could lead to delays or disputes.

Trustees are often required to:

  • Gather and inventory trust assets
  • Obtain valuations, if needed
  • Notify beneficiaries and other interested parties
  • Pay outstanding debts, taxes, and expenses
  • Distribute property in accordance with the trust
  • Maintain accurate records and provide updates when required

Whether you’re administering a trust or receiving assets from one, we’ll help you understand your role and provide support through every step of the process.

How We Can Help

Setting up a trust involves important decisions, and having the right guidance can make all the difference. We’ll meet with you, answer your questions in plain language, and help design a plan that meets your personal, financial, and family needs. From revocable living trusts to more complex irrevocable arrangements, we’ll help you make informed choices at every step.

If you’ve been named as a trustee or need help with trust administration, we’re available to provide legal guidance, assist with paperwork, and ensure that nothing falls through the cracks.

Frequently Asked Questions About Trusts

Do I still need a will if I have a trust?
Yes. A will can cover any assets not included in your trust and name guardians for minor children. Many estate plans include both documents to ensure full coverage.

Can I make changes to my trust after it’s created?
If you have a revocable trust, you can change or cancel it during your lifetime. Irrevocable trusts are harder to modify and often require court approval or beneficiary consent.

What happens if I don’t fund my trust?
A trust only controls the assets you transfer into it. If it’s not funded properly, your estate may still need to go through probate even if you created a trust.

How long does trust administration take?
It depends on the trust’s terms and the complexity of the assets. Some trusts are settled within a few months, while others are designed to last for years. Even short-term trusts can take a year or more to fully administer if there are multiple assets, tax issues, or debts to resolve.

Contact an Experienced New York Trusts Attorney

Trusts are powerful tools, but they’re not one-size-fits-all. Whether you’re thinking about a revocable trust for probate avoidance or an irrevocable trust for tax planning, we’ll walk you through your options. At Ligh Law, we take the time to understand your goals and help create a plan that works for your life and your legacy. Contact us today to schedule a consultation and take the next step toward building a thoughtful, personalized estate plan.

Trusts

Common Types of Trusts

Planning for the future often means thinking about how your assets will be handled when you’re no longer here, or if you become unable to manage them yourself. Trusts are one way to make those decisions easier. They give you more control, help avoid probate, and can offer privacy and protection for the people you care about. At Ligh Law, we work with clients to build estate plans that reflect their values and goals.

What Is a Trust?

A trust is a legal arrangement where one person, known as the trustee, holds and manages property for the benefit of another person, called the beneficiary. The individual who creates the trust is referred to as the grantor or settlor. They can be set up to take effect during your lifetime or after your death, depending on your goals. 

Trusts are widely used in estate planning to ensure assets are passed on according to your wishes, often without the need for probate. In addition to streamlining the transfer process, trusts can help preserve privacy, reduce legal complications, and provide more control over how and when your assets are distributed.

Will vs. Trust: What’s the Difference?

A will is a legal document that explains how you want your assets distributed after your death. It also allows you to name an executor to carry out your wishes and, if needed, a guardian for minor children. However, a will must go through probate—a court-supervised process that can be time-consuming, potentially costly, and part of the public record.

A trust, by contrast, can take effect during your lifetime and continue after your passing. It allows your chosen trustee to manage and distribute assets without going through probate, which helps maintain privacy and reduce delays.

Many estate plans include both a will and a trust. Trusts often provide more flexibility and control, especially when dealing with complex estates, blended families, or unique financial concerns. We’ll help you decide which combination of documents will work best for your goals and your peace of mind.

Revocable Living Trusts vs. Irrevocable Trusts

A revocable living trust lets you retain control of your assets while you’re alive. You can change it, add or remove property, or revoke it altogether. It becomes irrevocable after you pass away. These trusts are popular for avoiding probate and ensuring a smooth transition of your estate.

An irrevocable trust can’t be changed or dissolved once it’s created, at least not without court involvement. Since the assets are no longer considered yours, irrevocable trusts can offer tax benefits and safeguard assets from creditors or lawsuits.

Common Types of Irrevocable Trusts

There are many kinds of irrevocable trusts, each designed for a specific purpose:

  • Irrevocable Life Insurance Trust (ILIT): Holds a life insurance policy outside of your taxable estate.
  • Charitable Trust: Allows you to give to charity while receiving tax benefits or income during your lifetime.
  • Special Needs Trust: Provides for a person with disabilities without affecting their government benefits.
  • Spendthrift Trust: Protects the assets from being misused by the beneficiary or claimed by creditors.
  • Trusts for Minors: Manage and distribute assets over time, rather than giving a lump sum at age 18.

How Trust Administration Works and What It Involves

Being a trustee comes with important responsibilities. You may be managing assets, communicating with beneficiaries, and ensuring the trust is carried out according to its terms. We work with trustees to help them stay organized and avoid mistakes that could lead to delays or disputes.

Trustees are often required to:

  • Gather and inventory trust assets
  • Obtain valuations, if needed
  • Notify beneficiaries and other interested parties
  • Pay outstanding debts, taxes, and expenses
  • Distribute property in accordance with the trust
  • Maintain accurate records and provide updates when required

Whether you’re administering a trust or receiving assets from one, we’ll help you understand your role and provide support through every step of the process.

How We Can Help

Setting up a trust involves important decisions, and having the right guidance can make all the difference. We’ll meet with you, answer your questions in plain language, and help design a plan that meets your personal, financial, and family needs. From revocable living trusts to more complex irrevocable arrangements, we’ll help you make informed choices at every step.

If you’ve been named as a trustee or need help with trust administration, we’re available to provide legal guidance, assist with paperwork, and ensure that nothing falls through the cracks.

Frequently Asked Questions About Trusts

Do I still need a will if I have a trust?
Yes. A will can cover any assets not included in your trust and name guardians for minor children. Many estate plans include both documents to ensure full coverage.

Can I make changes to my trust after it’s created?
If you have a revocable trust, you can change or cancel it during your lifetime. Irrevocable trusts are harder to modify and often require court approval or beneficiary consent.

What happens if I don’t fund my trust?
A trust only controls the assets you transfer into it. If it’s not funded properly, your estate may still need to go through probate even if you created a trust.

How long does trust administration take?
It depends on the trust’s terms and the complexity of the assets. Some trusts are settled within a few months, while others are designed to last for years. Even short-term trusts can take a year or more to fully administer if there are multiple assets, tax issues, or debts to resolve.

Contact an Experienced New York Trusts Attorney

Trusts are powerful tools, but they’re not one-size-fits-all. Whether you’re thinking about a revocable trust for probate avoidance or an irrevocable trust for tax planning, we’ll walk you through your options. At Ligh Law, we take the time to understand your goals and help create a plan that works for your life and your legacy. Contact us today to schedule a consultation and take the next step toward building a thoughtful, personalized estate plan.