Bronx Trusts Attorney

Trusts are powerful legal tools that help individuals and families manage, protect, and transfer assets during life and after death. Whether you’re looking to avoid probate, minimize taxes, protect a loved one with special needs, or preserve wealth across generations, trusts offer flexibility and security that traditional wills alone cannot provide. At Cavallo & Cavallo, our Bronx trust attorneys help NY residents understand, create, and administer a wide range of trusts tailored to their goals and circumstances.

What Is a Trust?

A trust is a legal arrangement in which one person (the grantor) transfers assets to a trustee, who holds and manages those assets for the benefit of one or more beneficiaries. The trustee is legally obligated to follow the terms of the trust document and act in the best interest of the beneficiaries.

There are many types of trusts, but all share a few common goals:

• Avoiding probate
• Providing asset protection
• Managing assets in case of incapacity
• Controlling how and when beneficiaries receive assets
• Reducing estate and gift taxes

Trusts can be either revocable (changeable during the grantor’s lifetime) or irrevocable (permanent and often used for tax or Medicaid planning purposes).

Benefits of Trusts

Trusts can offer significant advantages over wills and other planning tools, including:

• Probate avoidance: Assets in a trust pass directly to beneficiaries without court involvement.
• Privacy: Unlike wills, trusts are not public documents.
• Incapacity planning: A successor trustee can manage your finances without court intervention if you become incapacitated.
• Tax efficiency: Certain trusts can reduce or eliminate estate taxes.
• Protection for beneficiaries: Trusts can shield assets from creditors, divorces, and poor financial decisions.

We design custom trusts to support your family’s needs now and for the future.

Common Types of Trusts

There are many types of trusts, each with a specific purpose. At Cavallo & Cavallo, we help clients choose the right type based on their goals, assets, and family dynamics.

Revocable Living Trust

• Created during your lifetime and can be changed or revoked.
• You retain full control as trustee and beneficiary.
• Avoids probate and provides privacy and continuity of management after death or incapacity.

Irrevocable Trust

• Cannot be changed or revoked once established.
• Removes assets from your taxable estate and provides creditor protection.
• Often used for Medicaid planning, tax reduction, or life insurance ownership.

Special Needs Trust (SNT)

• Protects assets for individuals with disabilities without affecting eligibility for Medicaid or SSI.
• Can be funded by a parent, grandparent, or court settlement.

Medicaid Asset Protection Trust (MAPT)

• Irrevocable trust used to preserve assets while qualifying for Medicaid long-term care benefits.
• Helps avoid the five-year lookback penalties if planned in advance.

Irrevocable Life Insurance Trust (ILIT)

• Owns life insurance policies outside of your estate.
• Provides liquidity for estate taxes and passes death benefits tax-free to heirs.

Charitable Trusts

• Used to support charitable causes while generating tax benefits and income for your family.
• Includes Charitable Remainder Trusts (CRTs) and Charitable Lead Trusts (CLTs).

Dynasty Trust

• Designed to preserve wealth for multiple generations while minimizing taxes.
• Shields assets from estate taxes at each generational level.

Spousal Lifetime Access Trust (SLAT)

• Irrevocable trust that benefits your spouse during their lifetime.
• Removes assets from your estate while still allowing access through your spouse.

Testamentary Trust

• Created by your will and only becomes active after your death.
• Useful for minor children or beneficiaries who need oversight or delayed inheritance.

Trust Funding: The Critical Step

Creating a trust is only part of the process—funding the trust is what gives it power. This involves transferring ownership of assets into the trust’s name. If you fail to fund the trust properly, the assets may still go through probate.

Assets commonly transferred into a trust:

• Real estate
• Bank and brokerage accounts
• Stocks and bonds
• Business interests
• Life insurance (by changing the beneficiary or ownership)
• Personal property and valuable items

We guide clients through the process of trust funding to ensure their plans work as intended.

Trust Administration

Once a trust is created and funded, it must be administered properly. Trustees have legal responsibilities to:

• Manage assets prudently
• Follow the trust’s terms
• File tax returns
• Keep beneficiaries informed
• Distribute assets as instructed

At Cavallo & Cavallo, we assist trustees with trust administration, reporting, and legal compliance. We also represent beneficiaries who need help understanding their rights.

Trusts and Taxes

Trusts can have significant tax implications, both good and bad. Some trusts reduce estate tax liability, while others may create income tax burdens for the grantor or beneficiaries. We help you choose the right trust structure to minimize taxes and maximize long-term value.

Key considerations:

• Grantor vs. non-grantor trust taxation
• Step-up in basis for appreciated assets
• Charitable deductions
• Trust income tax brackets

We work with tax advisors and accountants to coordinate a comprehensive estate and tax strategy.

Trusts and Incapacity Planning

Trusts play a vital role in planning for incapacity. If you become unable to manage your finances, a successor trustee can step in without the need for guardianship or court approval.

This avoids delays, protects your privacy, and ensures that your bills are paid, assets managed, and wishes honored.

Frequently Asked Questions About Trusts

Do I still need a will if I have a trust?
Yes. A “pour-over will” captures any assets not placed in the trust and directs them into the trust upon your death.

Can I change my trust after I create it?
Revocable trusts can be changed or revoked. Irrevocable trusts typically cannot, but some may allow limited changes through trust protectors or court modification.

Will a trust protect my assets from creditors?
Only irrevocable trusts offer creditor protection—and only if structured correctly and not created to defraud existing creditors.

Can I use a trust to control how my children receive their inheritance?
Absolutely. You can stagger distributions by age, set conditions for access, or provide for ongoing management if needed.

Are trusts just for wealthy people?
No. Trusts are valuable for people of all income levels who want privacy, control, probate avoidance, or protection for vulnerable loved ones.

What happens if I don’t fund my trust?
Unfunded trusts are ineffective. Assets left out of the trust may still be subject to probate, defeating one of the primary purposes of creating a trust.

Serving Throughout The Bronx

• Riverdale
• Spuyten Duyvil
• Pelham Bay
• Morris Park
• Throggs Neck
• Kingsbridge
• Woodlawn
• Parkchester
• Bedford Park
• Fordham

How Cavallo & Cavallo Can Help

At Cavallo & Cavallo, we’ve been helping Bronx families with trust creation, funding, and administration for over 30 years. We understand that every family and estate is unique, and we offer personalized guidance that balances legal protection with real-life practicality.

Our trust services include:

• Designing revocable and irrevocable trusts
• Medicaid and special needs trust planning
• Trust funding and asset transfers
• Trustee guidance and administration support
• Integrating trusts into estate and tax plans
• Representing beneficiaries and resolving trust disputes

Whether you’re planning for the future or administering an existing trust, we’re here to help.

Speak With a Bronx Trust Attorney Today

Trusts are among the most effective tools in estate planning—but they must be set up and managed correctly to achieve their full benefits. Contact Cavallo & Cavallo today to speak with an experienced Bronx trust lawyer and start creating a customized trust strategy that secures your family, your assets, and your legacy.