When it comes to estate planning in New Jersey, a revocable living trust is a versatile option that can help you manage your assets during your lifetime, and simplify the process of passing them on after your death. Please note that a revocable living trust is not appropriate in every circumstance, and should only be utilized where the cost of creation is outweighed by the benefit.
Also known as an “inter vivos” trust, a living trust allows you to stay in control of your finances while you’re alive, and ensures your assets are distributed according to your wishes once you’re gone. can help your loved ones avoid the time and expense of probate court.
Why Consider a Living Trust?
Assets passed through a traditional last will and testament often go through probate, which can in some instances be a lengthy and costly legal process. In contrast, a revocable living trust becomes effective immediately upon creation, allowing for a smoother, more private transfer of property. This can save your family both time and money after your passing.
Key Roles in a Living Trust
To understand how a revocable living trust works, it helps to know a few important terms:
- Grantor: The person who creates the trust and places assets into it.
- Trustee: The individual (often the grantor during their lifetime) who manages the assets within the trust.
- Beneficiaries: The people or organizations who will receive the trust assets after the grantor’s death.
Flexibility with a Revocable Living Trust
Unlike irrevocable trusts, which generally can’t be changed once established, a revocable living trust allows you to make changes or terminate the trust any point during your lifetime. This makes it an excellent choice for those who want both control and flexibility in their estate plan.
Is a Revocable Living Trust Right for You?
A revocable living trust isn’t right for everyone, but it can be a powerful tool for many New Jersey families, especially those looking to:
- Avoid probate
- Maintain privacy
- Plan ahead
- Streamline asset distribution
If you’re considering a revocable living trust or want to learn more about how it might fit into your estate plan, contact Ward, Shindle & Hall.
