A credit shelter trust is a special type of living trust that may be established between two married people. It is set up during the partners' lifetimes and generally benefits their children when they are both gone. At its most basic level, a credit shelter trust takes possession of the partners' assets and when one dies, the assets pass to the beneficiaries who must use it for the benefit of the surviving partner. When the second spouse passes away, their children take possession of the assets.
Are irrevocable trusts permanently set in stone?
There are many types of trusts, but the main categories are testamentary trusts, which go into effect upon the grantor's death, and living trusts, which go into effect while the grantor is still alive. Among living trusts, there are another two main subcategories: revocable trusts and irrevocable trusts. As its name implies, an irrevocable trust usually cannot be modified after it is executed. However, there are always exceptions to the rule, and irrevocable trusts are no different.
Estate planning when you have a chronic illness
It is not unusual for a person in New Jersey to have a chronic illness. Some chronic illnesses, such as Parkinson's or Alzheimer's will become progressively worse over time and will eventually make it difficult for a person to communicate their wishes or care for themselves. Therefore, it is very important that those with a chronic illness execute an estate plan while they are still able to do so.
