Trusts Lawyer in Newark

New Jersey Estate Planning Lawyers Ready to Help

Anyone who expects to leave behind assets and responsibilities after his or her death should seriously consider creating a trust. Trusts lay out a plan for how your assets will be distributed after you pass away. Creating a trust can minimize taxation and hassle for your inheritors, and also ensures that your assets are not taken away or distributed unfairly through the probate court. Creating a trust is just one important way to look out for the future well-being of your family, business, or even a charitable interest.

Each person, married couple and business owner has unique circumstances and concerns regarding asset distribution after their death. Talk to a lawyer who has years of experience handling estate planning for a wide range of individuals with complex financial portfolios. Established in 1955, Ehrlich, Petriello, Gudin, Plaza & Reed, Attorneys at Law is well regarded as a trustworthy source of legal counsel and services.

When you create a trust, you can delegate a certain person to be your trustee, such as a family member or business partner. After you pass, this person will then be able to distribute your assets efficiently and carefully. If you create a living trust and name yourself as a trustee, you can ensure that you will full control over your property until the time of your death. Another option for a trust is to transfer your assets to an institution like your alma mater, a religious group or a charitable organization. Finally, you can create a plan for the distribution of your spouse's assets by forming a "joint trust."

What Is the Difference Between a Revocable and Irrevocable Trust?

A revocable trust and an irrevocable trust differ primarily in terms of flexibility and control. These distinctions are important to understand when deciding which type of trust is best for your estate planning needs.

A revocable trust allows the trust creator (also known as the grantor) to retain control over the trust assets during their lifetime. The grantor can modify, amend, or even revoke the trust entirely, making it a flexible option for those who want to retain the ability to change their estate plan. Because the assets remain under the grantor's control, they are still subject to estate taxes and creditor claims. Upon the grantor’s death, the trust generally becomes irrevocable, meaning the terms can no longer be changed. Revocable trusts are commonly used to avoid probate, streamline asset distribution, and ensure privacy.

In contrast, an irrevocable trust cannot be altered or revoked once it is established, except under very limited circumstances. The grantor effectively relinquishes control of the trust assets, transferring ownership to the trust itself. This structure provides significant advantages in terms of asset protection, as assets in an irrevocable trust are shielded from creditors and legal judgments. Additionally, irrevocable trusts may reduce estate taxes because the assets are no longer considered part of the grantor's taxable estate. However, the downside is that the grantor loses flexibility and control over the assets.

Choosing between a revocable and irrevocable trust depends on factors such as asset protection, tax planning, and the level of control the grantor wishes to maintain. Consulting with an experienced Newark trusts attorney can help determine which option aligns with specific estate planning goals.

Ehrlich, Petriello, Gudin, Plaza & Reed, Attorneys at Law is a full-service law firm in Newark and New York providing estate planning services, including drafting of wills and trusts. A thorough discussion of your objectives and goals will be our guide for drafting estate planning documents including complex wills and trusts.