Estate planning is way more involved than just creating a will. While most folks think a will can protect all their interests, this is simply not the case. A robust estate plan often includes a will, a power of attorney, medical directives, beneficiary designations, and trusts. Trusts help ensure that your assets are distributed according to your wishes and can help your beneficiaries minimize estate taxes. If you are considering setting up a trust in NJ, Veitengruber Law can help. Here are some of the top questions we receive about trusts from our clients.
A: There are several different kinds of trusts available to NJ residents. Each type of trust is specifically designed to serve various purposes with different benefits and restrictions. Here are some common types of trusts and what they are used for:
A: The main reason to set up a trust is to avoid the New Jersey probate process. Probate can be cumbersome, time-consuming, and costly for beneficiaries. When your assets are included in the probate process, they become vulnerable to public scrutiny and creditors. Trusts allow you to safeguard your assets while living and distribute them privately once you are gone. Beneficiaries of trusts do not have to go through the probate process and can avoid potentially hefty estate taxes.
A: The first step in creating a trust is to determine which kind of trust best suits your specific circumstances. Not all trusts will protect your assets the same way, and each will have different implications for tax purposes. Once you decide what kind of trust will be most beneficial, you need to select a trustee to manage the assets in the trust. This person will be responsible for the distribution of assets after the grantor passes. Once these terms are established, the grantor will fund the trust by legally transferring ownership of assets to the trust.
A: It is possible to successfully create a trust without the assistance of an estate planning attorney—but it will likely not be as effective. An experienced estate planning attorney will offer guidance on the best trust for your specific circumstances. They will also be able to help you tailor the terms of the trust to best protect your assets and objectives. An attorney can ensure the trust is adequately funded and meets all legal requirements.
Working alongside a skilled attorney is highly recommended, especially if you have significant assets, multiple beneficiaries, complex family situations, or special needs dependents.
A: Regularly reviewing the terms of your trust is critical to ensuring the trust's accuracy in carrying out your goals. Life happens. Divorce, re-marriage, new children or grandchildren, estrangement, death, medical problems, or drastic financial changes can all lead to the revision of the terms of your trust. Update your trust as soon as possible after significant life changes.
Veitengruber Law is an experienced estate planning law firm in New Jersey. We help our clients plan for the future and find peace of mind. If you are considering setting up a trust, we can help you develop a tailored plan to protect your interests.
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George E. Veitengruber III is a New Jersey attorney, practicing New Jersey law exclusively in New Jersey. None of the information contained herein should be deemed to apply in other states, nor may this page be construed in any way as an attempt by Mr. Veitengruber to practice law in any state other than New Jersey. This page is intended to provide general information about our firm and its areas of practice to our current and potential clientele. It is not intended to give legal advice to anyone on any subject. That can only be done through a complete consultation with one of our attorneys. Legal advice obtained through this site does not create an attorney-client relationship, and the reader should not rely on same. According to the Supreme Court of New Jersey, and pursuant to the New Jersey Rules of Professional Conduct, this may be considered an “advertisement.” Before making your choice of attorney, you should give this matter careful thought. The selection of an attorney is an important decision. If the representations made on this page are inaccurate or misleading, you may report this to the Committee on Attorney Advertising, Hughes Justice Complex, CN 037, Trenton, NJ 08625. We are a federally designated debt relief agency — we help people file for bankruptcy. Information provided regarding “legal questions” or “bankruptcy updates” is for informational purposes only. While we hope and believe the information will be helpful, we do not warrant that the information is accurate or complete. Information is provided only in accordance with New Jersey and/or Federal Law. We are not licensed to practice law in any states other than New Jersey. The information does not constitute legal advice and should not be relied on as such. If you want legal advice, please consult a local lawyer directly. While we would welcome the opportunity to be that lawyer, we do not accept clients or render advice until the completion of a client intake form and a signed retainer agreement.