Revocable trusts play key roles in many New Jersey estate plans. They allow the grantor to direct the distribution of assets in accordance with the trust's instructions without incurring the expenses associated with probate. Indeed, in most cases the trust operates outside of probate, so assets may be transferred more efficiently and with less hassle to heirs.
New Jersey residents who wish to set up a trust to administer their estate after their passing may wish to review some of the common errors made by benefactors. A trust can be a powerful tool for settling an estate, sparing the family the costs of probate and the publicity that comes with it. However, if it is improperly set up or mismanaged, there can be serious consequences to the estate.
A trust can be an effective tool for estate planning purposes. A revocable living trust is one of the most popular types of trusts as it gives the trust's creator flexibility to make changes if needed. Although they cannot be changed, an irrevocable trust may provide for asset protection from creditors. When creating a trust, an individual selects a trustee to oversee the trust. The trustee may be an individual or an entity, such as a bank.
Residents across New Jersey were likely saddened by the recent death of famed actor Philip Seymour Hoffman. As tragic as his death was, however, it brought many important topics to light. Most recently, it is his will that has sparked some interesting dicussions. Sources suggest that Hoffman's estate plan proved to be inadequate in a few different ways that significantly affected how his assets and wealth will be distributed.
Many in New Jersey may be interested in drafting a revocable trust as a way of avoiding probate. While these trusts are popular and provide a lot of flexibility, anyone interested in drafting one must take care to avoid scams. Trusts that are not drafted or funded properly can end up costing more than just money.
Trusts have become a common part of estate planning for many people. Before you create a trust, it is important to understand the different types of trusts and how to decide which one to have.