To set up a trust or not to set up a trust, that is the question. Many New Jersey residents have an idea of what trusts can do, but some are not sure if going through the work to create one is really worth it. Is a trust really needed? It is actually not a necessity for everyone; however, those with children might want to consider all of the benefits a trust offers when going through the estate planning process.
Why would having a trust in place benefit one’s children? No matter a child’s age, if a parent becomes incapacitated or passes away, assets intended for the child may end up being taken by creditors or lost in estate litigation. No one wants that.
There are several types of trusts out there; irrevocable trusts, though, tend to offer the most asset and beneficiary protections. When creating an irrevocable trust, one must give up control of any assets one wants to include in the trust. Beneficiaries can then be named and intentions specified in the trust document. Once officially put into action, this type of trust cannot be changed. Some may consider this a negative, but it is necessary to look at the big picture in order to decide if it is worth it.
A trust can be a good thing if it is written and funded properly. New Jersey residents who are ready to go through the estate planning process can speak to an experienced attorney about whether having a trust in one’s legal arsenal would be of benefit. With the assistance of counsel, a solid estate plan — with only the necessary estate planning products — can be created.