Menu
Lanza & Lanza LLP
Call for an initial consultation

908-905-0183
FLEMINGTON, NJ
908-968-9580
SOUTH PLAINFIELD, NJ

New Jersey Supreme Court Certified Attorney Seal of the Supreme Court of New Jersey National Board of Trial Advocacy Est. 1977 NBTA National Board of Legal Specialty Certification

Deciding whether to create an irrevocable trust

New Jersey residents who are thinking about their estate plan might wonder whether an trust would be a good vehicle for passing assets on to loved ones. A trust may give them greater control over the distribution. For example, certain conditions can control the timing of a receipt of funds by a beneficiary. One of the first things people might consider is whether they would prefer to use a revocable or irrevocable trust.

The main difference is that an irrevocable trust cannot be changed while a revocable trust can be. However, there are two kinds of irrevocable trusts. One kind is created and funded while the grantor is still alive. A testamentary trust is not created and funded until the grantor dies. It is set up via a will, and since it does not officially exist while the grantor is alive, the grantor can change or cancel the trust by making a change to the will.

Since an irrevocable trust technically removes assets from a person's estate, there may be a number of advantages to creating one. Funds in an irrevocable trust are protected from creditors. They also will not be counted if a person needs to qualify for Medicare benefits.

A person might want to work with an attorney to create a trust. It is important that wills and trusts are done correctly or they might be vulnerable to challenges or may not accomplish what a person hopes to do. Furthermore, an attorney might be able to make suggestions regarding the estate plan that a person might not have considered. For example, people might also need a durable power of attorney to handle their finances if they are incapacitated.

No Comments

Leave a comment
Comment Information

Office Location

Lanza & Lanza LLP
5 Main Street
Flemington, NJ 08822

Phone: 908-905-0183
Fax: 908-782-4012
Flemington Law Office Map