Should I Consider a Living Trust?
Some types of estate planning tools are used by nearly everyone in New Jersey who is creating an estate plan, including a will, advance directives, and powers of attorney. While many people assume that creating a trust is only for wealthy New Jersey residents, certain types of trusts can be beneficial to individuals of varying socioeconomic backgrounds. One type of trust in particular that you may want to consider is a living trust. What is a living trust and should you consider one? Our New Jersey estate planning lawyers can provide you with more information.
What is a Living Trust?
Under New Jersey law, a living trust is a type of revocable trust that is also known as an inter vivos trust. This is a type of trust that you create while you are living, and you can use it much as you might use a will. To be clear, a living trust cannot do everything that a will can do — for example, you cannot name a guardian for minor children through a living trust, and you cannot name an executor for your estate — but you can identify assets and beneficiaries to receive those assets upon your death.
With a living trust, the grantor (the person making the trust) usually names themselves as the trustee. Accordingly, the grantor retains control over the assets in the trust and can make any revisions as they want. The grantor also retains the ability to cancel the trust if they want to do so. When a grantor names themselves as trustee, they will also name a successor trustee who will then manage the trust after the grantor’s death. The living trust allows assets to be transferred to the beneficiaries without going through probate.
Who Should Consider a Living Trust?
A living trust can be beneficial for New Jersey residents in many different types of situations. In short, this type of trust can be a good idea for anyone who wants to transfer assets without those assets having to go through probate. Any assets left through a will must go through the probate process.
You may be wondering if you can use this type of trust instead of a will. If you only want to leave assets, depending on the assets you own, you may be able to leave all assets to beneficiaries through a living trust rather than a will. However, if you need to make other estate plans that typically are done through a will, a will may still be necessary. An estate planning lawyer can help you to determine the documents you need to have in place in your estate plan.
Contact a Summit Estate Planning Lawyer Today for Assistance with Your Estate Plan
If you have any questions about the creation of a living trust or another type of trust, or any other inquiries about estate planning more generally, a lawyer can help. One of the experienced Summit estate planning attorneys at Dempsey, Dempsey & Sheehan can speak with you today to discuss your circumstances and to help you determine the best estate planning tools based on your needs. Contact our firm for assistance.
Source:
law.justia.com/codes/new-jersey/title-3b/
