Bergen County Trust Attorneys
Drafting Durable Trusts for NJ Clients
Preparing an estate is an important step for everyone. Through the proper execution of testamentary documents, including wills and trusts, a person can decide what happens to assets after he or she passes. Clear directions for an estate can save a family from undue stress and help them focus on healing after a loss. One testamentary document that can help one plan for the future is a trust. A trust is a way to manage assets of an estate before they are sent to probate. Through a trust, a person can provide a declaration of one’s wishes and ensure that the right beneficiaries receive the right assets. Planning for an estate is important and deserves the attention of an experienced law firm. If you need help developing a comprehensive estate plan that includes the use of trusts, contact The Radol Law Firm for a consultation.
What is a Trust?
A trust is a fiduciary agreement that provides a third party, called a trustee, to hold assets on behalf of a beneficiary or beneficiaries. There are a multitude of trusts available and can be executed to the specification of how and when assets should be passed. Trusts differ from wills in many ways, namely the positive tax implications and the avoidance of probate court. There are two main types of trusts: revocable and irrevocable.
- Irrevocable trust: no changes can be made once executed
- Revocable trust: changes can be made at any time
When choosing between revocable and irrevocable trusts, many people prefer irrevocable trusts because of the further positive tax implications compared with the latter. Once an irrevocable trust is properly executed, it is binding and cannot be changed. A revocable trust can be changed but does not come with the same extent of tax benefits as the latter. Whatever one chooses, both trusts have great advantages, including:
- Assets passed outside of probate
- Assets passed in a time-saving manner
- Legal costs saved
- Various tax benefits
There are many basic types of trusts, including marital trusts, bypass trusts, testamentary trusts, irrevocable life insurance trusts, charitable remainder trusts, charitable leads trusts, and generation-skipping trusts, just to name a few. The list goes on. Knowing the right trust for your situation is imperative. Contacting an experienced attorney is important.
Contact The Radol Law Firm
Developing the right plan for an estate can be somewhat complicated. Thinking about the future of your belongings can be overwhelming and our firm is here to help. Planning for the future is something every person should consider. Most people have a vision for how their assets should be passed and who should receive them. When a person avoids estate planning, their assets may be allocated by the state. Our firm is ready to compassionately guide you through the process and help you develop a comprehensive estate plan. If you are interested in knowing more about trusts and how they can protect your assets, contact The Radol Law Firm for a consultation today.