Types of Trust Available in New Jersey

  • Apr 16, 2023

Estate planning can be a complex and emotionally charged process, particularly when it comes to determining the best way to protect and distribute your assets. Trusts offer a flexible and powerful solution to manage your assets and provide for your loved ones, but with so many types of trusts available, it can be difficult to know which one is right for you. Falcon Law Group, a group of experienced estate lawyers in New Jersey, is here to guide you through the process with empathy and precision.

What Are The Different Types of Trusts

There are various types of trusts available in New Jersey and an estate planning attorney in helping you make the right choices for your unique situation.

types of trust available in new jersey

Revocable Living Trust

A revocable living trust is a flexible estate planning tool that allows you to maintain control over your assets while you are alive and avoid probate upon your death. With a revocable living trust, you can modify or even terminate the trust at any time. Upon your death, the assets in the trust are distributed according to your wishes without going through the time-consuming and expensive probate process.

Irrevocable Living Trust

An irrevocable living trust is a more permanent arrangement in which you relinquish control over your assets. Once you transfer your assets into an irrevocable trust, you cannot modify or revoke the trust. This type of trust offers substantial asset protection and tax benefits but comes with a loss of control over the assets.

Testamentary Trust

A testamentary trust, also known as a will trust, is created through your last will and testament. This type of trust becomes effective only upon your death and is used to distribute your assets according to your wishes. A testamentary trust is subject to probate and does not offer the same level of asset protection as a living trust. A will must go through probate before the testamentary trust is created.

Special Needs Trust

A special needs trust is designed to provide financial support to a person with disabilities without jeopardizing their eligibility for government benefits like Medicaid and Supplemental Security Income (SSI). This type of trust ensures that your loved one receives the care and support they need while maintaining their access to essential government programs.

Charitable Trust

A charitable trust is a trust created to benefit a charitable organization or cause. This type of trust can provide you with significant tax benefits and allow you to support the causes you care about. There are several types of charitable trusts, including charitable remainder trusts and charitable lead trusts, each with its unique benefits and requirements.

Create Your Own Trust With the Assistance of an Estate Planning Attorney in New Jersey

Creating a trust can be a complex process, and choosing the right type of trust for your situation is crucial. An estate planning attorney in New Jersey, like those at Falcon Law Group, can help you navigate the intricacies of trust creation and management by:

  • Assessing your unique situation: An experienced trust attorney will evaluate your financial situation, family dynamics, and goals to determine which type of trust is best suited for your needs.
  • Drafting the trust document: A trust attorney will draft a legally sound trust document that clearly outlines the terms and conditions of the trust, ensuring that your wishes are accurately represented.
  • Assisting with trust administration: Trust administration can be a complex and time-consuming process. A trust attorney can help you manage the trust, ensure compliance with legal requirements, and address any issues that may arise during the administration process.
  • Providing ongoing guidance: As your circumstances or the needs of your beneficiaries change, a trust attorney can help you update your trust or make any necessary modifications to ensure that it continues to meet your goals.
  • Coordinating with other professionals: A trust attorney can work alongside other professionals, such as accountants and financial advisors, to create a comprehensive estate plan that addresses all aspects of your financial life.
  • Educating and supporting your trustee: If you appoint a family member or friend as your trustee, an estate planning attorney can provide them with the necessary guidance and support to manage the trust effectively.

Understanding what the different types of trusts are and how they can help you achieve your estate planning goals is essential in creating an effective and comprehensive plan. By working with an experienced estate planning attorney, like those at Falcon Law Group, you can ensure that your trust is properly established and managed, providing you with peace of mind and a lasting legacy for your loved ones.

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