Common Types of Trusts Explained

When you begin thinking about your estate plan, one of the most important tools to consider is a trust. Trusts allow you to manage how your assets are distributed both during your lifetime and after your passing. Unlike a will, a trust can help you avoid probate, protect your privacy, and ensure that your loved ones receive support in a way that reflects your specific wishes.

In New York, there are many types of trusts, each designed for different purposes. Whether you want to provide for your family, minimize estate taxes, or protect a loved one with special needs, the right trust can make a meaningful difference.

At Lauren Glynn Law PLLC, we help clients throughout Cooperstown and surrounding communities understand not only what each trust does, but how it fits into their unique story, family dynamics, and goals. Our role is to simplify the process and ensure your plan reflects what matters most to you.

Revocable Living Trusts: Flexibility and Control

A revocable living trust is one of the most common estate planning tools in New York. It’s called “revocable” because you can change, modify, or dissolve it at any time during your life. You act as the trustee, maintaining full control over your assets while you’re alive, and appoint a successor trustee to manage the trust after your passing or if you become incapacitated.

The main benefits of a revocable living trust include:

• Avoiding probate: Assets in the trust pass directly to beneficiaries, saving time and court costs.
• Maintaining privacy: Unlike wills, trusts are not public record.
• Continuity of management: If you become ill or unable to manage your affairs, your successor trustee can step in without court intervention.

While this type of trust offers convenience and flexibility, it does not protect your assets from creditors or long-term care expenses because you maintain control of the trust during your lifetime.

Irrevocable Trusts: Long-Term Protection

An irrevocable trust cannot be changed once it’s created, which may sound restrictive, but it offers valuable protections that revocable trusts do not.

When you transfer assets into an irrevocable trust, they are no longer considered part of your estate. This means:

• The assets are generally protected from creditors or lawsuits.
• They may reduce estate tax liability in certain cases.
• They can help preserve eligibility for government benefits such as Medicaid.

Irrevocable trusts are often used for asset protection, long-term care planning, or legacy purposes. In exchange for giving up control, you gain powerful safeguards for your family’s future.

We often remind clients that estate planning is about balance—protecting yourself today while creating stability for tomorrow. For many, an irrevocable trust provides the peace of mind that their loved ones will remain secure even in unexpected circumstances.

Testamentary Trusts: Created Through a Will

A testamentary trust is unique because it doesn’t take effect until after your death. It’s established through your will and funded with assets from your estate.

This type of trust is often used by parents who want to provide for children or dependents in stages rather than all at once. It allows you to:

• Control how and when funds are distributed.
• Ensure responsible management of inheritances.
• Provide for minor children or family members with limited financial experience.

Because testamentary trusts are tied to a will, they must go through probate. However, they can still be a practical option for individuals who want to balance simplicity with oversight.

Special Needs Trusts: Supporting Loved Ones with Care and Dignity

For families who have a child or adult loved one with a disability, a special needs trust (SNT) is one of the most important planning tools available.

This trust allows you to set aside funds to support your loved one without disqualifying them from crucial public benefits such as Supplemental Security Income (SSI) or Medicaid. The trust can pay for a wide range of expenses — from housing and education to personal care and recreation — that improve quality of life while preserving eligibility for assistance programs.

There are two main types of special needs trusts:

1. First-party SNT: Funded with the beneficiary’s own assets, often from an inheritance or legal settlement.
2. Third-party SNT: Funded by someone else, such as a parent or grandparent.

Creating a special needs trust requires careful attention to state and federal regulations. Our team takes the time to understand your family’s circumstances and ensures the trust aligns with both your financial goals and your loved one’s long-term well-being.

Charitable Trusts: Giving with Intention

If charitable giving is part of your legacy, a charitable trust can help you support causes that matter to you while also offering tax advantages.

Two common types are:

• Charitable remainder trust (CRT): You or your chosen beneficiaries receive income from the trust for a period of time, and the remainder goes to a designated charity.
• Charitable lead trust (CLT): The charity receives income first for a set number of years, and the remainder goes to your heirs.

These trusts allow you to leave a lasting impact while maintaining financial benefits during your lifetime. Many people find that a charitable trust transforms their estate plan into a meaningful expression of gratitude and purpose.

We often help clients identify charitable structures that reflect their personal values while maximizing tax efficiency and supporting causes that bring them joy.

Asset Protection Trusts: Shielding What You’ve Built

For individuals with significant assets or business interests, asset protection trusts can play a vital role in safeguarding wealth against potential risks.

These trusts are typically irrevocable, meaning ownership of the assets is transferred out of your name. However, they provide strong protection from creditors, lawsuits, or other financial claims.

In New York, domestic asset protection trusts are complex and must be carefully structured to comply with state law. Working with an attorney ensures that your plan is effective, valid, and aligned with your financial and family goals.

At Lauren Glynn Law PLLC, we help clients craft protection strategies that preserve their hard-earned assets while maintaining peace of mind.

Deciding Which Trust Is Right for You

The best type of trust depends on your personal circumstances — your family structure, financial situation, health concerns, and future goals. Some individuals benefit from combining multiple trusts to achieve layered protection and flexibility.

When we work with clients in Cooperstown and beyond, we take time to truly listen. Estate planning isn’t just about documents — it’s about relationships, values, and ensuring that the people you care about are supported when they need it most.

Together, we’ll discuss:

• Your goals for asset distribution.
• Potential tax implications.
• How to protect beneficiaries from financial risk.
• Whether you need ongoing management or simple distribution.

The right trust not only secures your legacy but also provides peace of mind that your intentions will be honored.

Contact Lauren Glynn Law PLLC

Planning for the future doesn’t have to feel overwhelming. With compassionate guidance and clear information, you can make confident decisions that protect your loved ones and reflect your values.

If you’re ready to explore your options for creating a trust or updating your estate plan, contact Lauren Glynn Law PLLC at 607-303-6554. We help individuals and families throughout Cooperstown and the surrounding New York communities find practical, meaningful ways to preserve their assets and care for the people who matter most.

Your story deserves a plan built on understanding, care, and trust.