Parents in New York may have many issues to consider when creating an estate plan. If they intend to leave money to their children, it is important to think about when they should be able to access that money. Individuals have the option of making distributions from a trust dependent on certain events taking place or on a predetermined timeline. There is also the option of making distributions based on other criteria a grantor deems appropriate.
In many cases, a trust will allow for both discretionary and mandatory distributions to be made by a trustee. For instance, it could call for distributions to be made when a person turns 30. However, distributions could be made earlier than that to pay for a college education or for a medical bill.
It is also possible to leave some of the money in the trust where it can be managed by someone other than the beneficiary. This may help to ensure that a child’s needs are met without the risk that the money is squandered by a beneficiary with limited fiscal skills. If money is to be left in a trust, the beneficiary can be given power to name a descendant who will eventually collect that cash. Keeping money in a trust may also provide tax benefits for its creator and for future generations.
The estate planning process may allow a person to establish his or her legacy while also reducing the odds of family disputes arising. An attorney may help to draft a trust or any other document that may be part of a person’s estate plan. Legal professionals and other advisers may engage family members in conversations to determine what their needs are.