When it comes to creating a trust to protect assets against various predatory efforts including financial elderly abuse, lawsuits, and undue influence, certain attractive trust features can be utilized. These features allow the person who establishes the trust to receive income as well as realize various other advantages. Remember, trusts have various purposes and not all features are a suitable fit for every trust. This article, however, discusses some of the most common asset protection features that are utilized in New York trusts.
# 1 – The Ability to Change Beneficiaries
Fortunately, it’s often possible to make a trust irrevocable while still keeping the ability to change beneficiaries who receive assets under the trust. Being titled irrevocable can often make a trust seem final, but if you can decide who receives trust assets and to what degree, there’s still some freedom to the terms of a trust. A “power of appointment” can be utilized during which a grantor reserves the right to change beneficiaries through an amendment to that individual’s last will and testament. Consequently, it’s possible for a person to both realize the features of asset protection of a trust while still being able to change some features of how assets are distributed.