NJ Trusts Attorney
When a loved one dies, there are many legal issues that need immediate attention including trusts. In New Jersey, it is important to work with a lawyer to create and administer trusts. With our qualified attorney, trust beneficiaries and fiduciaries can rest assured that the account will be handled and dispersed according to state law and their wishes. Having an attorney involved in every phase of the trust process also helps reduce costly mistakes that can compromise or deplete the trust.
What are Trusts?
Trusts, commonly called trust funds, is a fund that is made of assets intended to provide a specific individual or organization benefits. The trust fund is created by a grantor to provide an individual, usually a grandchild or child, with financial security. Trusts can also be set up to benefit a non-profit organization or other charity.
The Difference Between a Trust and a Will
While many believe that a living trust is more beneficial than a will, it is important to realize that a trust does not replace the need for a will. Under most circumstances, an individual will need both a trust and a will. Trust funds usually only deal with specific assets such as life insurance, property, or inheritance monies. A person’s will governs how all other property and assets are divided after their death. An attorney can help a client determine what assets should be covered by a trust and what assets are better protected with a will.
Types of Trusts
Laws regarding trusts are complicated and best handled by an attorney. When trusts are created through DIY paperwork, there is a greater chance the documents could be contested in the future. The types of trusts a person can set-up with the guidance of an attorney include:
- Higher education
- Credit shelter
- Qualified personal residence
- Irrevocable life insurance
- Generation-skipping (commonly called dynasty trusts)
- Terminable interest property
Administering a Trust
In New Jersey, an attorney can create and administer trusts. When an attorney creates a trust for a client, the following information will be considered:
- Who the trust benefits
- Ways to minimize taxes
- An analysis of personal and financial data
- Review the consequences of income tax or transfer tax related to any decision
If a person works with an attorney to administer a trust, the law offices will be responsible for:
- Working with a bank trust department
- Representing fiduciaries and beneficiaries in any litigation surrounding the trust
Reasons to Establish a Trust
There are many reasons to establish trusts, and many feel a trust fund offers greater protection than a will. The significant benefits of trusts are featured below:
- Provide better protection against legal action than wills if someone is unhappy with the trust
- Reduces estate tax
- Helps avoid probate court
- Provides for family after a person’s death
- Eliminates family feuds
- Private (since trusts don’t go through probate court, there are usually no public records)
- Saves time, legal fees, and lengthy paperwork usually associated with probate and wills
- States exactly when and how funds are dispersed to beneficiaries
Whether you need help creating or administering a trust in New Jersey, the law offices of John L. Schettino, LLC can help. Call today for a free consultation.