What Is a Trust?

Law Offices of Barbara Katsos pic

Law Offices of Barbara Katsos
Image: katsosnylaw.com

At the Law Offices of Barbara Katsos, Barbara Katsos represents New York clients in need of estate-planning guidance. Among her many legal services, Barbara Katsos sets up trusts, prepares wills, and conducts real estate transactions on behalf of her clients.

A common type of legal arrangement, trusts allow individuals to place their wealth in the hands of another person, persons, or set of institutions. These third parties are referred to as “trustees.” The trust’s creator can set its terms. People often rely on trusts to ensure that their wealth passes down to beneficiaries without the need to enter into probate.

Lawyers can set up many types of trusts, depending on the clients’ needs. For example, trust creators may elect to use a “generation-skipping trust” to ensure that their grandchildren receive their assets upon the their death without having to pay estate taxes. Another type, the “charitable lead trust,” divides heritable assets among charitable organizations and other beneficiaries.

Trusts can be revocable or irrevocable. The former means that the creator can modify the trust or even dissolve it entirely during the course of his or her lifetime. The creator of an irrevocable trust, on the other hand, cannot change it once it has been executed.

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