What is an inheritance trust?

An inheritance trust, sometimes also called a succession trust, is a legal arrangement in which assets are held for the benefit of a person after they pass away. In New York, inheritance trusts are commonly used as part of an estate plan to ensure that the beneficiary’s wishes are carried out and that their estate is managed according to their wishes. Inheritance trusts are created by a person during their lifetime and are designed to protect the beneficiary’s assets after their death. Depending on the type of inheritance trust, these assets can include cash, investments, real estate, and more. An inheritance trust can help to reduce the estate and taxes owed by the deceased person, and can also provide for very specific gifts and instructions for how their estate is to be managed. Inheritance trusts can be made revocable, meaning the trust creator is able to change or revoke the trust during their lifetime, or irrevocable, meaning the trust is not changeable. Generally, an irrevocable trust offers more protection, since it can’t be altered by creditors or potential lawsuits. In New York, inheritance trusts are governed by state law, and must be established correctly in order to ensure that the trust creator’s wishes are carried out. An experienced estate planning attorney can help you understand your options and create an inheritance trust that meets your needs.

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