Why include a Trust in your will?

September 06, 2019


Why include a Trust in your will?  

Sometime Trusts are needed because the persons to whom you wish to leave money are spendthrifts or are simply bad at investing.  As soon as they receive a windfall, they may spend it on entertainment, dinners or poorly invest in widget futures. They are soon in the very same financial situation they were in prior to your generous bequest. These persons are often loved ones about whom we care deeply.  Sometimes the loved one may be intemperate due to their age, whether young or old. Certainly, a person would not leave a substantial sum of money in the hands of a 13 year old, and perhaps not in the hands of a 90 year old.  Sometimes our loved ones find themselves with unmanageable debt or judgments against them.  A Testamentary Trust is useful to shield our loved one from premature loss of funds we leave them, and to help them lead a more comfortable life, with less risk.

A Testamentary Trust will allow you to bequest cash and/or property, whether they be land, stocks, bonds, etc. to a loved one and to have the peace of mind that the monies will still be there for them when they need it.  The person (or entity) you choose to be the Trustee will be chosen by you. They will be someone you judge to be of good character – someone you know you can trust to do the right thing. A Trustee has a fiduciary duty to the beneficiary of the Trust, and they can and will be held accountable to the beneficiary by a court of law, if necessary.

A Trust can also be arranged so that when the beneficiary reaches a certain age, the Trust ceases to exist and that the property within the Trust is transferred to the beneficiary.

A Testamentary Trust is an important tool that can give you peace of mind that your loved ones, whom you wish to assist financially, will be cared for, will not become destitute, and will not be forced to live on public assistance.  It is imperative that you be completely open and honest with your attorney regarding both your situation and that of your loved one, as to your desires on how your estate is to be distributed, and who you trust to perform this important task.

Lastly, a Testamentary Trust allows you to fully control and enjoy your assets while you are alive, as opposed to the present creation of a trust and a present transfer, which does not.  







Prior results do not guarantee a similar outcome. All information posted is general advice only, based upon the rules of NYS, and is not intended to be a substitute for personal legal advice. Although information provided here was accurate as of the date of posting, laws change frequently and rules in other jurisdictions may differ. Therefore, readers should not rely upon these postings but should consult an attorney to discuss their specific factual situation.

175 East Shore Road, Suite 270,  Great Neck, NY 11023  Phone: (516) 482-1186