What You Should Know About Trusts

AuthorSeymour Goldberg
ProfessionSenior partner in the law firm of Goldberg & Goldberg, P.C., in Woodbury, New York
Pages9-12
Many individuals for various reasons have provided for trusts in their
estate plans.
There are valid reasons for creating a trust:
• Asset protection
• Preventing the assets from being dissipated prematurely by heirs
• Providing that assets stay within the bloodline
• Providing an asset stream (income and/or principal) for heirs
•
Providing for the health, education, maintenance, and support of heirs
• Providing for minors
• Providing a fund for payment of estate taxes, debts of the estate, and
payment of administration expenses
•
Providing for professional trustees who can invest the assets over the
long term and who understand the trust laws
• Anticipating a will contest
• General difculty of trust contests
• Avoiding ancillary probate proceedings if real property is located in
multiple states (cost savings)
• Providing for the incapacity of the creator of the trust
• Privacy issues
• Federal and state estate tax savings
•
Taking advantage of the expanded generation-skipping transfer tax
exemptions
In the absence of specic reasons for a trust, there are many reasons why
a long-term trust should not be provided for. These reasons include the
following:
9
WHAT YOU SHOULD
KNOW ABOUT TRUSTS

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