Estate, Powers and Trusts, § 7-1.1: When Trust Interests Not to Merge

When you create a trust, a trustee holds assets in the trust on behalf of beneficiaries you choose. You can transfer practically any type of property to a trust including cash, stocks bonds, other securities, insurance policies, real estate, antiques, and artwork. The type of property that you choose to transfer to a trust depends on your goals. Under the doctrine of merger, if the same person becomes both the sole trustee and the sole beneficiary of a trust, then by operation of law the trust is deemed to have terminated. However, under New York probate law a trust will not be subject to merger, invalidity or termination if besides the person who is the trustee and owner of the present beneficial interest in the trust, there is at least one other person who hold a vested, contingent, present, or future interest in the trust. To learn more about the estate planning process and how to create a trust that will meet your estate planning goals, contact an experienced Manhattan Probate Lawyer.

Related Statutory Provisions
  1. Trustee of passive trust not to take: Estates, Powers and Trust, § 7-1.2
  2. Purchase-money resulting trust abolished: Estates, Powers and Trust, § 7-1.3
  3. Purposes for which trust may be created: Estates, Powers and Trust, § 7-1.4
  4. When trust interest inalienable; exception: Estates, Powers and Trust, § 7-1.5
Estate, Powers and Trusts, § 7-1.1- When trust interests not to merge

A trust is not merged or invalid because a person, including but not limited to the creator of the trust, is or may become the sole trustee and the sole holder of the present beneficial interest therein, provided that one or more other persons hold a beneficial interest therein, whether such interest be vested or contingent, present or future, and whether created by express provision of the instrument or as a result of reversion to the creator's estate.

Manhattan Probate Lawyer

To learn more about probate, wills, trusts and other estate planning documents, contact Stephen Bilkis & Associates, PLLC. We will help create a trust for you that is consistent with your specific goals. Contact us at 1.800.NY.NY.LAW (1.800.696.9529) to schedule a free, no obligation consultation regarding your estate issue. We serve individuals throughout the following locations:

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