What is a Family Trust?
For many people, a core estate planning goal is protecting and providing for their family. A family trust can be among the most efficient and effective estate planning tools. At Poulos LoPiccolo PC, we have extensive experience handling family-based estate planning issues. In this article, our New Jersey estate planning lawyer provides a guide to family trusts.
What is a Family Trust?
A family trust can be an effective, efficient way to protect assets and preserve wealth for future generations. As defined by Forbes, a family trust is broadly defined as “any trust you set up that benefits members of your family.” In other words, the term is not used for a specific type of trust. There are multiple different trusts that can be “family” trusts. With any type of family trust, the assets will be managed by a trustee who is responsible for overseeing the property for beneficiaries.
Key Considerations for Family Trusts in New Jersey
Are you considering setting up a family trust as part of your estate plan in New Jersey? It is crucial that you have a trust that is well-structured for your specific situation. Here are some of the most notable considerations for family trusts in New Jersey:
- Types of Trusts: Under New Jersey law, there are a wide array of different types of trusts. All of these trusts serve different purposes. For example, revocable living trusts offer flexibility and can be altered or revoked by the grantor during their lifetime. On the other hand, irrevocable trusts generally cannot be changed once established—but they provide a much greater level of asset protection. Understanding the benefits of each type of trust is essential. A lawyer can help you find the right option for your family.
- Choice of Trustee: Selecting the right trustee is another key aspect of setting up a family trust. It is this person (or entity) who will be responsible for managing the trust’s assets and making decisions in the best interests of the beneficiaries. In New Jersey, trustees can be family members, friends, or a professional such as a law firm. You can select a beneficiary—but with family trusts, it may not be the right option.
- Funding the Trust: Properly funding the trust is essential to its effectiveness. This involves transferring ownership of assets, such as real estate, bank accounts, investments, and personal property, into the trust. A family trust must be properly funded.
- Regular Reviews and Updates: Estate planning needs can change. Family dynamics and financial situations often change over time as well. With that in mind, making it important to regularly review and update the trust. The regular updates help to ensure that the trust continues to reflect the grantor’s wishes and remains aligned with current laws and family circumstances. A top-tier New Jersey estate planning attorney can help.
Speak to Our New Jersey Family Trust Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning attorney is committed to protecting your rights and interests. If you have any questions about setting up a family trust, we are here to help. Give us a call now or contact us through our website for a completely confidential initial consultation. Our firm provides family-based estate planning services throughout New Jersey.
Source:
forbes.com/advisor/investing/financial-advisor/family-trust/
