Legal Question in Wills and Trusts in New York
Grandfather Trust
My husband's grandfather passed away leaving my husband land in New York. This land was left in a revocable trust with my husband as sucessor trustee and benficiary. Should we change title into another trust or into our individual names? We do not reside in NY and want to make sure if my husband dies that we do not have any probate issues? We do not have any children or other heirs of concern. Also planning to recieve income from the land and if this is a trust asset then income would have to go into trusts and taxes paid out of trust? and could we use the income to pay off/for personal items.
1 Answer from Attorneys
Re: Grandfather Trust
Much of the answers to your questions depend on the terms of the trust and New York law. This answer only considers Texas and US law.
Having that land in a trust in New York actually could be a good thing, in avoiding probate in New York. That property will not have to go through probate when your husband dies, if you leave it in the trust. That could save a lot of money and trouble.
If your husband is the only beneficiary of the trust, then a lot of times the trust is ignored for income tax purposes. Any income earned by property in the trust would just be added to your husband's income, as if the property were not in trust.
You should check with a New York attorney regarding trust issues, and with an accountant regarding tax issues.
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