Trusts have been around much longer than people realize. There’s evidence of them being successfully used in England as far back the Crusades. Those early trusts were created as a means of transferring one person’s holdings to another while the original one fought in the Crusades. The way those early trusts were set up allowed the businesses conducted on the lord’s lands to continue despite the owner’s absence. It took some time and a few legal battles before we ever had the legal framework that exists for New York City trust laws today.
New York City trust laws exist so that someone can ensure that the a loved one, often one who is young or who has special needs, will continue to receive the financial support they need, even after the primary caretaker passes on. When the creator of the trust passes on, whatever property was placed into the trust is placed under the control of a trusted party, called a trustee in the United States, and administered in pre-specified incriminates to the beneficiary. New York City trust laws have been created to deal with the creation of trusts, the type of property/assets placed in the trust, and how the trust must be managed.
There are a couple of different ways that trusts get established in New York City. The first is because someone has begun to think about the end of their life and is worried about what will happen to their loved ones after they have passed away. This concern convinces them to meet with an attorney who not only helps them establish a will, but will also aid with the creation of a trust. The creation of the trust includes:
- Handling the paperwork
- Confirming the trustee
- Helping decide if it’s a trust that will mature or one that is doled out in increments
- Making sure the entire trust adheres to New York City trust laws
There are different types of trusts. If an express trust is created, the original property owner leaves very clear instructions about how the property must be managed. Dynasty trusts, which allow the original property owner to skip a generation and leave the property to grand children or even great grandchildren, have become very popular. Unit trusts are an excellent choice when the original property owner wishes for their estate to be divided into multiple chares. Once the assets have been divided into shared, the trustee will assign each of the beneficiaries an amount based on the exact wording of the trust.
Traditionally trusts are established so that they benefit the descendants of the original property owner or a charitable organization, but over the past few decades, many people have opted to create trust that ensures any pets they leave behind will be cared for.
Sometimes trusts aren’t created by the original property owner, but are actually established by New York City courts. These are generally created when the beneficiary wins a lawsuit and the court wants to make sure the settlement gets used to handle future medical needs.
Contact Pulvers-Thompson today if you are ready to create a trust or have questions about specific New York City Trust Laws.