Trusts
Last updated on March 30, 2026
Brooklyn, New York, Trusts Lawyers
The estate planning law firm of The Law Offices of Polizzotto & Polizzotto, LLC, with offices in Brooklyn, New York, assists clients throughout New York City and surrounding areas with setting up trust funds for beneficiaries and estate tax purposes. Our attorneys establish a variety of different trusts according to our clients’ financial goals and needs.
We offer legal solutions tailored to your unique situation. Contact us to learn how we can help you find the trust fund that is right for you.
Types Of Trusts
Trust funds can be used to transfer assets to a beneficiary and to protect assets from governmental agencies and financial misuse.
There are two main types of trusts – revocable trusts and irrevocable trusts. Revocable trusts may be used in place of a will when there is an unequal distribution of assets among family members. With these trusts, your family can avoid probate. Irrevocable trusts transfer assets and money to a family member for the purpose of Medicare and Medicaid planning. They can also be used for tax planning.
We can also help you set up the following:
AB Trust (Credit Shelter Trust)
An AB trust, also known as a bypass trust or credit shelter trust, helps married couples reduce estate taxes and protect assets for beneficiaries. When one spouse passes away, the estate is divided into two separate trusts. This structure helps preserve wealth while allowing the surviving spouse to maintain access to certain assets.
Key features include:
- Asset division after the first spouse’s death, placing assets into Trust A (for the surviving spouse) and Trust B (for beneficiaries)
- Estate tax protection
- Asset control
- Financial support for the surviving spouse through income or limited access to trust assets
This trust structure can protect family wealth and clarify asset distribution.
Special Needs Trust
A special needs trust protects financial resources for a person with disabilities while preserving eligibility for government benefits such as Supplemental Security Income or Medicaid. The trust holds assets for the beneficiary’s benefit without placing those assets directly in their name.
These trusts provide:
- Funds for medical care, education and personal support services not covered by public benefits.
- Protection of eligibility for government assistance programs.
- Management of financial assets by a designated trustee.
- Long-term financial security for individuals with disabilities.
A special needs trust allows families to provide ongoing support without risking access to essential benefits.
Constructive Trusts
A constructive trust is a legal remedy created by a court to address wrongful conduct, such as fraud, breach of fiduciary duty or unjust enrichment. Unlike traditional trusts, it is not intentionally created but imposed to prevent one party from unfairly keeping property.
Constructive trusts may apply when:
- Property was obtained through fraud or misconduct.
- One party would be unjustly enriched by retaining assets.
- A confidential or fiduciary relationship was abused.
Because these cases involve complex legal claims, working with an attorney helps protect property rights and pursue equitable remedies.
2503(c) Trust
A 2503(c) trust helps families make financial gifts to minors while maintaining oversight of how those funds are used. It allows a parent, grandparent or other loved one to transfer assets for a child’s benefit in a way that qualifies as a present‑interest gift. This can make the transfer eligible for the annual federal gift tax exclusion. They are often used to support a child’s future needs without allowing unrestricted access at a young age.
The trust must allow the beneficiary to receive the full value of the trust when reaching the specified age, commonly 21. Until then, the trustee may use trust assets for the child’s health, education or general welfare. This structure offers a practical balance between flexibility and long‑term control.
2503(c) trusts can hold various assets and may be tailored to a family’s goals. It can provide a structured method for supporting a child’s development and preparing for important milestones.
Income-Only Trust
An income‑only trust is used by those who want to protect certain assets while still receiving income generated by those assets during their lifetime. This type of trust is typically irrevocable, meaning the creator gives up control of the principal but may continue to benefit from the income stream it produces. Income-only trusts can help preserve assets for future generations while limiting exposure to certain financial risks.
Families often use income‑only trusts as part of long‑term planning strategies when they want to safeguard property or savings for heirs. By separating ownership of the principal from the right to receive income, the trust creates a clear framework for managing and transferring wealth.
Charitable Trust
A charitable trust, also known as a charitable remainder trust, allows individuals to support charitable causes while retaining an income interest for themselves or another beneficiary. The trust pays income for a set period or for life, after which the remaining assets pass to the chosen charity. Charitable trusts empower donors to make a meaningful philanthropic impact while also receiving potential tax advantages.
These trusts can hold different types of assets and can be customized to reflect the donor’s charitable priorities. They offer a thoughtful way to combine personal financial planning with long‑term charitable giving.
Other Types Of Trusts
Several other trusts serve specialized estate planning purposes:
- Life insurance trusts, which manage life insurance proceeds and may reduce estate taxes.
- 2503(c) trusts, designed to transfer assets to minors with tax advantages.
- Income-only trusts, which protect assets while allowing income distribution.
- Charitable trusts, which support charitable causes while offering tax benefits.
- Qualified personal residence trusts, which transfer a home at a reduced tax value.
Selecting the right trust affects financial security and legal rights. Our estate planning attorney helps ensure the structure aligns with personal and family goals.
Trusts Vs. Wills
While a will is a foundational estate document, a trust offers a more sophisticated level of control for New York residents. A will primarily serves as a set of instructions for the court to follow after your passing. In contrast, a trust acts as a private legal entity that can hold and manage your assets both during your life and after you are gone.
By using a trust, you can often avoid the delays and expenses associated with the New York probate process, ensuring your loved ones receive their inheritance more efficiently.
Several factors distinguish how these documents function within an estate plan:
- Control during life: A trust allows for the seamless management of your assets if you become incapacitated, whereas a will offers no protection during your lifetime
- Distribution speed: Trust assets can be distributed to beneficiaries almost immediately, while a will is subject to the court’s timeline
- Publicity: Probate makes your will a matter of public record; trust documents remain entirely confidential
Ultimately, these instruments are most effective when they work together. A pour-over will is often used alongside a trust to ensure any assets not specifically titled in the trust’s name are still handled properly and according to your overall vision.
New York City Certified Financial Planner
Each type of trust serves a different purpose. Understanding how a particular trust would benefit your situation requires knowledge of the various trusts and the benefits and downfalls of each. Alfred Polizzotto III is a certified financial planner with more than 20 years of experience assisting clients with asset protection and transfer. He will assist you in making a decision that reaches your goals and serves your needs.
If you are looking for a way to transfer money to a beneficiary, contact Brooklyn and New York City estate planning attorneys at 718-232-1250.