Using Trusts To Accomplish Your Goals
Many people believe that trusts are only for the very wealthy. This isn’t necessarily true. Although estate planning with trusts becomes increasingly important if you have significant assets and concerns about taxation, the reality is that many people who do not think of themselves as extremely wealthy can benefit from the creation of a trust.
At J. Jeffrey Press, P.A., experienced attorney J. Jeffrey Press drafts trusts to help families throughout northern New Jersey minimize estate taxes, provide assets to adult children with disabilities and more.
Understanding Different Trusts And Their Benefits
Here are some examples of different types of trusts and the objectives they can accomplish:
Grantor Or Living Trusts
A grantor or living trust allows you to fully control your assets during your lifetime and determine how you want those assets to be distributed after your death. A grantor trust can be used as a substitute for a will. When assets are held in a trust, your beneficiaries do not have to go through the probate process before assets are distributed. By avoiding probate, trusts also help you keep your family’s financial affairs private.
Grantor Retained Annuity Trusts
A retained annuity trust allows you to retain the right of income from trust assets during your lifetime. At your death, the assets will automatically be transferred to the remainder beneficiaries.
Qualified Personal Residence Trusts
A personal residence trust is an estate and gift planning device that allows you to use a residence during the term of the trust and transfer the title to your beneficiaries upon the termination of the trust. Provided you outlive the term of the trust, placing your residence in the trust removes it from your estate for estate tax purposes.
Irrevocable Life Insurance Trusts
An irrevocable life insurance trust allows you to minimize estate taxes by keeping life insurance benefits out of your estate and control the distribution of the proceeds following your death.
Charitable trusts are an efficient way to provide assets to a charity while minimizing taxation and retaining the income during your life.
Irrevocable Asset Protection Trusts
Irrevocable trusts enable you to protect assets from creditors, bankruptcy and lawsuits.
Special Needs Trusts
A special needs trust allows you to provide assets to a loved one with a disability without making that person ineligible for government benefits such as Medicaid and Supplemental Security Income.
Contact Us For More Information About Trusts
Through careful planning and the implementation of trusts, we can achieve your estate planning goals and provide you with peace of mind. Schedule a consultation with us today. Call our office at 973-323-2654 or contact us online.