Trust planning allows individuals to manage how assets are held, used, and distributed during life and after death. Trusts can serve many purposes, including protecting beneficiaries, reducing tax exposure, and avoiding probate in certain situations. They are not limited to high-net-worth estates and are often part of practical planning for families of all sizes. Understanding how different trusts work helps individuals make informed decisions about their estate plans.
Why Work With Merlino & Gonzalez for Trust Planning
Our estate planning attorneys help individuals and families create trust plans that reflect their goals and address real-world needs. When you partner with us, you benefit from:
- Experience preparing trusts under New York and New Jersey law
- Clear explanations of how each trust functions and when it may be useful
- Careful coordination between trusts, wills, and beneficiary designations
- Planning for probate avoidance, family protection, and future flexibility
Let us help you determine whether a trust fits your estate plan and how it should be structured. Reach out today for a consultation.
What Is a Trust in Estate Planning?
A trust is a legal arrangement in which one person holds property for the benefit of another. In estate planning, the person creating the trust is known as the settlor. The settlor appoints a trustee to manage the assets for one or more beneficiaries.
Trusts can be created during life or as part of a will. They may take effect immediately or only after death. Many people use trusts to control when and how assets are distributed, protect beneficiaries, or address tax and probate concerns.
Are Trusts Only for Very Large Estates?
Trusts are often misunderstood as tools only for wealthy families. In reality, they are used by individuals with a wide range of assets and goals. Trusts can help parents plan for young children, protect family property, and provide structure when assets should not be distributed outright.
In New York and New Jersey, trusts are commonly used to avoid probate, manage property in multiple states, and prepare for future incapacity. Whether a trust makes sense depends on personal circumstances rather than estate size alone.
What Types of Trusts Are Commonly Used in Estate Planning?
There are many types of trusts, each designed to serve a specific purpose. Some of the most commonly used include the following.
Trusts for Minors
Trusts for minors allow parents or grandparents to leave assets for children while controlling how and when funds are distributed. These trusts are often used to cover education, medical needs, and general support until a child reaches a chosen age or milestone.
Special Needs Trusts
Special needs trusts allow individuals with disabilities to set aside assets without affecting eligibility for government benefits. Funds in these trusts can be used for supplemental needs while preserving access to essential assistance programs.
Marital Trusts
Married couples use marital trusts for tax planning and property protection. They may allow a surviving spouse to use assets during their lifetime while ensuring that property ultimately passes to children or other intended beneficiaries.
Revocable Living Trusts
Revocable living trusts are created during life and can be changed or revoked. They are often used to avoid probate and to manage assets if the settlor becomes unable to do so. These trusts frequently work alongside a will as part of a broader estate plan.
Irrevocable Life Insurance Trusts
Irrevocable life insurance trusts are designed to hold life insurance policies outside of a person’s taxable estate. This structure may help reduce estate tax exposure while ensuring that proceeds are available to beneficiaries.
Spendthrift Trusts
Spendthrift trusts protect trust assets from creditors and from beneficiaries who may struggle with financial management. An independent trustee controls distributions to support long-term protection.
Contact Our New York and New Jersey Trust Planning Attorneys
At Merlino & Gonzalez, we assist individuals and families throughout New York and New Jersey with trust planning that supports their personal and financial goals. Our primary office is in Staten Island, and we regularly work with clients across Manhattan, Brooklyn, Queens, and the Bronx. Contact us today to discuss your trust planning needs.
Frequently Asked Questions About Trust Planning
Do I need a trust if I already have a will?
A will and a trust serve different purposes. A will directs how assets are distributed after death, while a trust can manage assets during life and after death. Many estate plans use both together to provide structure, flexibility, and added protection.
Who controls the assets in a trust?
The trustee controls and manages trust assets according to the instructions in the trust document. The trustee may be the person who created the trust, another individual, or a professional trustee, depending on the type of trust and its goals.
Can trusts be changed after they are created?
Some trusts can be changed, while others cannot. Revocable trusts may be amended or revoked during the settlor’s lifetime. Irrevocable trusts are usually not changeable once created, which is why careful planning is essential before they are finalized.