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What Are the Different Types of Trusts?

A key component of every comprehensive estate plan is establishing trusts. There are various types of trusts, however, and many people find the process confusing. That is why you must continue reading and speak with our experienced New Jersey estate planning attorney to learn more about trusts and how our firm can guide you through the trust-creating process. Here are some of the questions you may have:

Revocable Trusts vs. Irrevocable Trusts

The two main types of trusts are revocable and irrevocable. Essentially, when you establish an irrevocable trust, you allow your beneficiary access to all assets included in the trust. What’s more, these trusts cannot be changed or eliminated without the consent of the trust’s beneficiary. Revocable trusts, however, allow you, the trust creator, to amend or terminate the trust at any time. However, once you pass away or become incapacitated, the beneficiary will gain control over the trust.

Are There Different Types of Trusts?

There are several different types of trusts of which you may create, however, they all serve very different purposes. The four most common types of trust in New Jersey are as follows:

  • Special Needs Trusts: These are for families who have a loved one with special needs. These trusts can help ensure that your loved one receives all government benefits, as well as financial support that he or she needs.

  • Charitable Trusts: If you would like to donate a portion of your assets to a charitable organization, you may do so through these types of trusts. Additionally, these trusts also help you implement income or estate tax planning methods.

  • Irrevocable Life Insurance Trusts: If you are looking to remove your life insurance policy from your estate to help beneficiaries avoid tax consequences associated with your life insurance policy, this is the trust for you.

  • Testamentary Trusts: These trusts are included in people’s wills and only take effect after the individual has passed away.

If you are looking to establish a trust, you must speak with a knowledgeable estate planning attorney today–fortunately, you have just found that attorney in Juan C. Velasco, Esq. He has helped countless individuals create dependable trusts over the years, and he is ready to do the same for you.

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.