Michael A. Manna & Associates
Toll Free: 866-678-0459
Phone: 201-345-3018

Let our attorneys provide the legal help Your Family Deserves

Case Evaluation Form

An overview of trusts for New Jersey residents

Estate planning may seem daunting to some New Jersey residents because it can be complicated. An estate plan may require consideration of a person's personal preferences, cash flow, retirement needs, taxes, insurance and investment wishes, both currently and in the future. A basic understanding of how trusts work can help make the process seem less complicated.

Trusts are private agreements set up for a specific purpose, such as asset protection. A person can establish either a revocable trust, which may be changed, or an irrevocable trust, which may not. Trusts may be established during a person's lifetime or following death. A living trust may be established to keep the testator's wishes private or to allow for the transfer of assets during a person's life. Life insurance trusts may help reduce estate taxes by removing life insurance proceeds from a person's estate. These are common types of trusts set up during a person's life.

A testamentary trust is one established as part of a person's will. A minor's trust determines who will control assets if a minor should inherit. A credit shelter trust helps preserve tax credits for a living spouse, which can help reduce taxes for that spouse. A special needs trust can be established to provide for a disabled person's care, and may be created either during the life of the testator or following death.

Whether established during life or following death as part of a will, a trust can be a useful tool for ensuring that a person's wishes are followed. An estate planning attorney may be able to review a person's financial situation and give advice on which trust would fit his or her financial situation. The attorney may then assist with preparing paperwork to establish the trust.

Source: NJ.com Times of Trenton, "Szymanski: Trusts play vital role in financial planning", Eleanore Szymanski, June 02, 2013

No Comments

Leave a comment
Comment Information