Creating a revocable living trust can be a strategic move for anyone looking to manage their estate with flexibility and foresight. This type of trust allows you to retain control over your assets while you’re alive and ensures a smoother transition of those assets after your passing, without the need for probate. Taking the essential steps is vital for setting up a trust that truly reflects your wishes and needs.
If you’re considering setting up a revocable living trust, the guidance of a dedicated attorney can be invaluable. At The Matus Law Group, our skilled New Jersey living trust attorney offers experienced assistance tailored to your unique circumstances. We can assist you in understanding the nuances of trust creation, including the advantages and disadvantages. Our team can also help ensure that all legal requirements are met and provide ongoing support to adapt your trust as your life changes. Contact us today at (732) 281-0060 to secure your legacy and provide for your loved ones with confidence.
Incorporating these five essential tips can help you create a living trust that provides peace of mind and clear directives for the future.
1. Put Out-of-State Assets in Your Trust
If you own property in more than one state, putting it in your revocable trust can help your family avoid having to open an estate in several states. You can save your family hundreds or even thousands of dollars simply by moving your out-of-state property into the trust. Putting your property in a trust may also help in making the probate process more efficient.
2. Choose a Successor Trustee Carefully
While you are alive, you will serve as the trustee of your own trust. That way, you retain complete control over your assets. After you pass, someone that you name (aka the successor trustee) will distribute and manage the trust assets in a way that you specifically designate. You should take some time to think about whom you trust to take on this important role. It should be someone who is responsible enough to carry out your wishes.
3. Create an Incapacity Clause
Your revocable living trust can authorize a successor trustee to step in and manage trust assets upon your incapacity (after a stated trigger, e.g., written physician certification). This often avoids a court-supervised guardianship of the estate for trust property. However, you still need a durable power of attorney for non-trust assets and an advance directive/health-care proxy for medical decisions under New Jersey law. The team at Matus Law Group can help you incorporate this lesser-known feature into your trust.
New Jersey Living Trust Attorney – Matus Law Group
Christine Matus
As a New Jersey living trust attorney, Christine Matus brings three decades of experience helping families protect what matters most through tailored revocable trusts, special needs planning, and elder‐law–informed estate strategies. Admitted to the New Jersey Bar and the U.S. District Court of New Jersey in 1995, Christine combines meticulous drafting with a warm, educator’s approach, ensuring clients understand their options and feel confident about every decision.
Christine is deeply engaged in the legal and local community: she serves on the Attorney Arbitration Committee (2021–present), is Secretary of the Ocean County Bar Association Board of Trustees, and has held leadership roles with 21 Plus and MOCEANS, Inc. As a frequent speaker on special needs planning, real estate, and nonprofit compliance, she has contributed to community publications and co-authored elder law articles, including analyses of the Nursing Home Bill of Rights and OBRA 1993, published by the New York State Bar. Her commitment to service includes court mediation, volunteering with local nonprofits, and prior ethics board service (District IIIA, 2006–2010).
4. Avoid Putting Unnecessary Assets in the Trust
While bank and brokerage accounts can use POD/TOD designations to avoid probate, these designations do nothing for incapacity; no one can manage the account for you if you are unable to act. If you want both probate avoidance and built-in incapacity management, consider titling non-retirement accounts to your trust (or pairing trust titling with POD/TOD). However, retirement accounts (IRAs, 401(k)s, 403(b)s) are treated differently. They should remain in your personal name and not be retitled to your trust. Use beneficiary designations for these accounts. While naming a trust as a beneficiary is sometimes appropriate, note that the SECURE Act payout rules will then apply. Life insurance typically uses beneficiary designations; you can name your trust as beneficiary to manage proceeds for minors or beneficiaries needing oversight.
Funding Your Trust: Assets to Include and Avoid
Funding makes your revocable living trust work. Put the right assets in, and the trust can manage them during incapacity and pass them outside probate at death. Include your New Jersey home and other real estate retitled to the trust, plus nonretirement bank and brokerage accounts, CDs, and taxable investment accounts. You can also assign business interests, LLC membership units, and valuable personal property like collections. Real estate transferred to a trust still carries any existing mortgage, and the loan follows the property.
Some assets are better left out. Do not retitle your IRA, 401(k), or 403(b) to the trust, because that is treated as a taxable distribution. Keep these in your name and use beneficiary designations. In specific cases, you may name your trust as beneficiary for control, but review the payout rules, since nonperson beneficiaries can face faster distribution schedules under the SECURE Act.
HSAs cannot be titled to a trust because they must be owned by an individual. Use beneficiary designations instead. For vehicles in New Jersey, you may now add a Transfer on Death (TOD) beneficiary on the title through the NJ Motor Vehicle Commission, so the car passes outside probate; alternatively, some owners title a vehicle to the trust if their insurer permits. Continue to consider naming the trust as the beneficiary of life insurance to centralize management for minors or blended-family planning.
To fund properly, titles must change. Record a new deed for real estate and sign bank or brokerage forms to move nonretirement accounts into the trust. Institutions may ask for a certification of trust. If a loved one uses public benefits, consider naming a supplemental needs trust as beneficiary so support is preserved under New Jersey Medicaid rules.
A New Jersey attorney can draft and record deeds, prepare assignments, coordinate transfers with financial institutions, and align beneficiary forms so your plan works the way you want.
5. Take Advantage of Increased FDIC Protection
On April 1, 2024, the FDIC simplified deposit insurance for Trust Accounts (this includes POD/TOD accounts, living trusts, and most irrevocable trusts). Coverage is $250,000 per trust owner, per eligible primary beneficiary, capped at $1,250,000 per owner, per bank when there are five or more eligible beneficiaries. Coverage for all of your trust, POD/TOD, and most irrevocable trust deposits at the same bank is aggregated. The standard FDIC limit for other categories remains $250,000 per depositor, per insured bank, per ownership category. Name only the real, eligible beneficiaries you intend to benefit; adding more than five will not raise coverage above the cap.
Revocable living trusts offer a variety of unique and beneficial features. A New Jersey living trust attorney from The Matus Law Group can guide you through which features will be most helpful for you and your family. Contact us today to schedule a consultation.
| Tip from Article | Key Action or Consideration | Additional Details |
|---|---|---|
| Put Out-of-State Assets in Your Trust | Transfer real estate or property owned in other states into your revocable living trust. | Helps avoid multi-state probate and reduces costs for your heirs. |
| Choose a Successor Trustee Carefully | Name a reliable person or institution to manage and distribute your trust assets after your passing. | Ensures your wishes are carried out smoothly and avoids potential disputes. |
| Create an Incapacity Clause | Add a clause that allows a successor trustee to act if you become incapacitated. | Prevents the need for a court-supervised guardianship and keeps matters private. |
| Avoid Putting Unnecessary Assets in the Trust | Include only appropriate assets like non-retirement accounts and real estate; leave out IRAs and 401(k)s. | Avoids tax issues and ensures your trust functions correctly. |
| Take Advantage of Increased FDIC Protection | Be aware of new FDIC insurance coverage for trust accounts effective April 1, 2024. | Coverage is $250,000 per beneficiary, capped at $1,250,000 per owner per bank for five or more beneficiaries. |
Getting the Help of an Experienced New Jersey Living Trust Attorney
Implementing the right strategies for creating a revocable living trust can significantly streamline your estate planning process, providing both protection and flexibility for your assets. With careful planning and professional advice, you can ensure that your trust is structured effectively to meet your specific needs and objectives. A well-crafted living trust not only avoids the potential issues involving probate but also offers peace of mind, knowing that your estate is prepared for a smooth transition.
At The Matus Law Group, our experienced New Jersey living trust attorneys are ready to guide you through every step of creating your revocable living trust. We understand the importance of personalized estate planning and can work closely with you to ensure that your trust reflects your wishes accurately and comprehensively. Contact us today at (732) 281-0060 to secure your assets and your future with the help of a trusted professional.
