If you have been appointed as the trustee of a trust, consider it a vote of confidence in your judgment and trustworthiness. It is also a major responsibility. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to […]

Despite its name, a “defective grantor trust” is a legal and valid trust. The “defective” part only describes the fact that it’s not valid for income tax shifting purposes. Because it’s a Grantor Trust, all of the income, deductions, and credits are reported on the individual income tax return of the person creating the IDGT, […]

A unitrust is a useful tool, but like any other trust, it has to be the right tool for the situation. If a trust is converted to a unitrust, there are a number of interesting advantages. Here’s a classic scenario that illustrates the value of a unitrust. It is the second marriage for one or […]

Decanting a trust is what the name implies: the assets of an existing trust are poured into a new trust, just like a bottle of wine. New York State has one of the most liberal decanting statutes in the United States. In most cases, there is no need for court approval. There are certain scenarios […]