One of the most important things that anyone can do in their lifetime is to create a comprehensive estate plan. Of course, the first thing that comes to mind for most of us is writing a will. While wills are the cornerstone of all estate plans, creating trusts is also equally important. If you would like to learn more about trusts, please continue reading and reach out to our knowledgeable New Jersey estate planning attorney. Here are some of the questions you may have:
What Is the Difference Between Revocable and Irrevocable Trusts?
The two most common types of trusts are irrevocable and revocable trusts. Irrevocable trusts give beneficiaries access to all access included in that trust, though once you create the trust, it cannot be changed or terminated without the beneficiary’s approval. On the other hand, revocable trusts allow the creator of the trust to change or terminate the trust at their will, as long as they are still competent and are mentally capable of doing so. That being said, with revocable trusts, once the creator becomes incapacitated or passes away, the beneficiary will gain full control over the trust.
Are There Different Types of Trusts?
There are four main types of trusts available to individuals in New Jersey. They are as follows:
Special Needs Trusts: If you have a loved one with special needs, you may be looking into creating a special needs trust. These trusts can help your loved one receive financial support, as well as all of the government benefits he or she is entitled to.
Charitable Trusts: Many people who were unable to give in their lifetimes set of charitable trusts, with a charitable organization of their choosing as the beneficiary. While these trusts are a great way to give back, they also implement income or estate tax planning methods, and can save your loved ones money in the future.
Irrevocable Life Insurance Trusts: Through these types of trust, you can remove your life insurance policy from your estate. This will help beneficiaries avoid tax consequences associated with your life insurance policy, thus saving them money in the long run.
Testamentary Trusts: If you create a testamentary trust, it will be included in your will. These types of trusts only take effect after you have passed away.
For any additional questions regarding your estate plan, please do not hesitate to reach out to our knowledgeable Edison estate planning attorney today. We are here to help you through every step of the process ahead.
Contact Our Experienced New Jersey Firm
Juan C. Velasco, Esq. is a trusted attorney who concentrates on bankruptcy, family law, real estate, and estate matters who has been serving the New Jersey area for over 20 years. That is why we are confident we have what it takes to provide you with the effective legal counsel you need. If you need experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.