Revocable Trust
(Minimally Funded, Grantor as Sole Initial Trustee and Income Beneficiary) (NY)

Summary

This template is a revocable trust where the grantor is the sole trustee. New York abolished its partial merger rule so that the grantor may be the sole initial trustee and sole initial income beneficiary. This template is a self-settled trust that is designed to comply with New York rules for trust creation, particularly the funding rule of N.Y. Est. Powers & Trusts Law § 7-1.18. This template contains practical guidance, drafting notes, and alternate clauses. On the death of the grantor, the trust will function as a virtual will. As with a will, the grantor's death terminates the power of revocation that was possessed by the grantor until death. Typically, the trustee of a revocable trust will also be the recipient of property from the grantor's will as the result of a pour over provision in the will. The trustee can also receive property in various other ways. For example, the trust can serve as the receptacle for life insurance proceeds where the trust has been named as beneficiary to any life insurance policies. Other examples include property received by the trustee as a result of the exercise of a power of appointment in favor of the trustee and by the receipt of property from third parties. For a full listing of key content related to estate plans for married or partnered people in New York, see Estate Plan for Individual with Spouse or Partner Resource Kit (NY). For more information about revocable trusts, see Characteristics and Uses of Trusts (NY), Requirements and Restrictions on Trust Purposes and Administration (NY), and Revocation, Amendment, and Termination of Trusts (NY).