Trusts are legal entities that separate the rights of ownership. In a revocable trust, the trust owns the property and not you. It gives you the advantage of retaining control and use of the assets while benefiting from simplified estate planning and potential asset protection. To illustrate, suppose you as the trust’s ‘grantor,’ transfers real estate into the trust you’ve established. You then record the transfer deed with the proper authorities. In that case, government records will reflect that the revocable trust is the owner of that real estate, even though the grantor can revoke the transfer at a later date.
This feature of a revocable trust is only one of several elements to evaluate when you are considering forming a revocable trust as part of a comprehensive estate plan. A New York trust lawyer from Pierro, Connor & Strauss, LLC can explain the many other elements and help you determine whether a revocable trust is the best vehicle for the ownership and management of your property.
How is Property Ownership Structured in a New York Revocable Trust?
A grantor, most often yourself, creates a revocable trust and designates one or more individuals as trustees with a fiduciary obligation to manage it for the benefit of the trust and its beneficiaries. The grantor of a revocable trust often designates themselves as the sole trustee. They will not be the direct legal owner of the property, but they retain full control over the management of it during their lifetime. The grantor can also designate a successor trustee to assume management responsibilities after death, avoiding probate.
The trustee has obligations, including the following:
- Paying property taxes and other levies imposed on the property.
- Managing the trust property and investing income to benefit the trust and its beneficiaries.
- Responding to legitimate inquiries from beneficiaries in a timely manner.
- Distributing trust property and assets per the directions established by the trust’s grantor.
If you believe that a revocable trust would serve the property management needs in your estate, consult with an experienced New York estate planning lawyer for a specific assessment of whether it is the optimum tool for your purposes.
How Do Changed Circumstances Affect Property that a Revocable Trust Owns?
The flexibility of a revocable trust is one of its most appealing features. While the grantor of the trust is alive, he, she or they can change beneficiaries, alter the composition of the assets in the trust, or revoke it entirely to serve new needs or unanticipated financial demands. In the role as trustee, the grantor can also direct the sale of property out of a trust. In all cases, these changes and revisions are less complex than if the same revisions were to be made to a traditional will.
Our Trust Attorneys
Louis W. Pierro
Pierrolaw
Aaron E. Connor
Pierrolaw
Frank E. Hemming III
Pierrolaw
Kristen A. Peck
Pierrolaw
Anthony Khatchoui
Pierrolaw
Tommaso Marasco
Pierrolaw
Patricia Whelan
Pierrolaw
