Some people in New Jersey may think that the only way for them to pass their assets on to their loved ones is to create a will. However, a trust also allows a person to pass down their assets for future generations. Trusts have some advantages that people who are going through the estate planning process will want to keep in mind.
First, trusts can be a good choice for couples with children of any age. If a couple has young children, a trustee can be selected who will take care of the children’s financial affairs if both parents pass away before the child is grown. Conditions can also be placed on trust benefits that could help ensure that an adult child who may not be responsible with money will not squander their inheritance away. Special needs trusts can be used to ensure that a disabled child can continue receiving government benefits without having the trust assets counted as financial resources for the purpose of qualifying for government benefits.
There are other advantages to executing a trust as well. Trusts bypass probate, and thus are kept private. A trust can include plans for who will manage finances should one become incapacitated. Charitable trusts can allow a person to give assets to a non-profit organization following their death. Trusts can also help a person protect their assets from being taken by creditors.
There are a variety of trusts that can accomplish a variety of goals. Whether it is a revocable trust, an irrevocable trust, a special needs trust, a charitable trust or any other type of trust, it is important that those who want to execute a trust understand all their options. With the right information at hand, they can choose the estate planning vehicle that best meets their wishes. Elder law attorneys may be able to help with this aspect of estate planning.