Trusts have a broad range of applications that may be relevant to New York residents who are planning their estate. There are many different types of trusts that provide different benefits, and here are two that might be of interest.
It is possible to make charitable donations while still providing for one’s family with charitable trusts. With a charitable lead trust, assets are transferred to a charity or charities according to the terms of the trust. The leftover assets then pass to a family. One can also get payments from a trust during one’s lifetime and have the remainder of the assets pass to a charity. This is a charitable remainder trust. With these trusts, the assets are not subject to capital gains taxes and come with income tax benefits.
