There are many reasons to establish a trust. You may have a child who is not yet mature enough to handle the responsibility of an inheritance. A spendthrift trust can be established to prevent the sale of assets held in the trust until creditors are paid. You may have a child with special needs who will need to be cared for after your death. A special needs trust can protect your child, ensuring that any available government benefits are retained while funding life-enhancing expenses. You may want to create an irrevocable trust to protect assets from the federal estate tax. Because an irrevocable trust transfers ownership to the trust itself, assets in the trust are not subject to taxation.
What Type of Trust is Best for me?
If you are considering establishing a trust, an experienced
trust lawyer can act as a guide, ensuring that you establish the right trust to meet your own personal needs.
- Living trusts, also known as revocable trusts, are the most common form of trust. Once established, revocable trusts can be modified or revoked entirely. The trustor will transfer the title of a property to a trust, will serve as the initial trustee, and can remove property from the trust if desired.
- A revocable trust is also an excellent way to keep your estate out of probate after your death. Once assets are transferred into the trust, the trust is the owner of those assets, and they are not subject to probate. A revokable trust does not entirely protect assets, however. Creditors can still petition a court for payment if assets are held in a revokable trust.
- A charitable trust ensures that a beloved charity is remembered after your death.
- A constructive trust is an implied trust and is established by a court to ensure that assets are distributed as wished by the property owner.
- A tax by-pass trust provides funds for a surviving spouse, who can receive assets tax-free, while providing the same benefits to children, who in the event of a substantial estate could be faced with a large tax bill when the surviving spouse also dies.
If you are looking for an experienced attorney in trusts, call the law offices of Steven W. Tarta, Esquire at (201) 444-8448 or send an email to info@tartalaw.com. The Tarta Law office has more than 45 years of experience and specializes in all forms of estate planning, including living trusts. Tarta Law serves clients in Midland Park, Ridgewood, Glen Rock, Wycoff and Franklin Lakes.
Steven W. Tarta, Esq. brings more than 45 years of professional experience to his practice, with a sophisticated focus on Estate Tax Planning, Living Trusts and Elder Law.