When it comes to estate planning in New Jersey, there are many choices. One of these choices is a living trust. But is this option right for you? Even though you might have heard this term being thrown around before, you might not fully understand how a living trust works. So, what are the benefits of this estate planning tool? Who should get a living trust? Is this really the right choice for you?
How Does a Living Trust Work in New Jersey
The best-qualified individual to answer these questions is a qualified estate planning attorney in New Jersey. Internet research is always a positive first step, but sometimes you need to sit down and speak with a legal professional in order to truly understand the details of a living trust. After your consultation, you can make an informed decision and figure out whether this is the right choice for you.
The Basics of a Living Trust
The main purpose of a living trust is to bypass the probate process. This can be a time-consuming process, and the family members of the deceased grantor are often forced to deal with this inconvenient situation. As the name suggests, a living trust is active while the grantor is still alive. This allows the trust to reach beneficiaries without first clearing the courts. In addition, you can designate yourself as the trustee of your living trust if you choose a revocable living trust. This means that you have complete control of the assets within your trust. During your lifetime, you can change the beneficiaries, take back assets held by the trust into your possession, undo the trust completely.
However, a living trust may also be irrevocable. This means that you relinquish control of the trust to a designated third party – the trustee. This can be beneficial for tax reasons.
Things to Consider Before Establishing a Living Trust
Before you establish a living trust, you might want to consider a number of important factors. For example, the probate process may not be a huge issue for your family members. If this is the main reason you want a living trust, perhaps it’s not really worth it. Establishing a living trust can also be expensive. You may also find that your living trust is contested, and this can lead to a lengthy legal process. While living trusts can be effective in avoiding tax burdens, there are situations in which a will can provide exactly the same benefits. Finally, living trusts can be especially effective if you own properties in other states.
Enlist the Help of a Qualified Attorney Today
If you have been searching the New Jersey area for a qualified, experienced estate planning attorney, look no further than Giro, LLP, Attorneys at Law. Although a living trust certainly comes with its fair share of benefits, this is just one of many options available to you. Reach out and book your consultation today to review all of your estate planning choices.