If you are interested in establishing one or more trusts of your own as a part of your estate plan, it’s important to do the research. There are many types of arrangements that you can make once you have a particular goal or purpose in mind. A Bergen County trust lawyer from our firm can help you with this.
What Are Revocable Trusts and Irrevocable Trusts?
The first thing that you need to know is the difference between revocable and irrevocable trusts. When you make a revocable trust, you are reserving the right to make changes to the rules of the trust later on. You can also take assets out of the trust or put new ones in at any time.
An irrevocable trust does not allow you to change the rules later or withdraw assets once they have been used to fund it. You choose a trustee to be in charge and these assets are essentially no longer counted as part of your estate. This has pros and cons. You cannot change the rules or beneficiaries of such an arrangement later, but the assets inside of these trusts are protected from lawsuits and creditors.
Can You Set Up Trusts With Specific Goals in Mind?
You can also set up trusts with specific rules or ones that help you have some control over how your assets are distributed once you pass away. Some good examples include:
Special needs trust: This can be used to disperse funds to a loved one with special needs after you pass away.
Spendthrift trust: This kind of arrangement can have rules set in place to ensure that a beneficiary does not squander the assets left to them.
Charitable trust: You can continue to donate to charities of your choice after you pass away.
Marital trusts: These types of trusts can allow married couples to pass assets to each other and their own beneficiaries.
Pet trusts: You can even use a trust to provide for a pet’s expenses after you pass.
There are other types of trusts as well. If you have a specific purpose in mind, tell our team and we’ll help you find an arrangement that offers the kind of flexibility or benefits that you’re looking for.
Do I Need a Lawyer?
We do recommend meeting with our lawyers if you plan to establish any trusts. You want to make sure that you completely understand the rules of any trust before you set it up and fund it with your assets. We can help you ensure that everything is done correctly and that you choose the kinds of trusts that help you fulfill any of your financial goals.
Talk to Our Team About Your Estate Plan
Setting up a trust and making an entire estate plan on your own can be tough, confusing, and potentially risky legally. Instead, contact the Law Offices of Colin M. Quinn and ask to schedule a consultation with our team. We can answer any questions that you have about trusts and what you need to do to protect your assets.
