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. Understanding the essential steps can make all the difference in 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) 785-4453 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
You can actually use your living trust as a way to avoid having to set up a separate guardianship or conservatorship in some circumstances. You simply indicate that your successor trustee will also take over should you become incapacitated and set out specific rules or conditions on your care should that event occur. The team at Matus Law Group can help you incorporate this lesser-known feature into your trust.
4. Avoid Putting Unnecessary Assets in the Trust
Many life insurance policies, bank accounts, and retirement accounts have a payable-on-death provision, and they automatically go to your beneficiaries upon your death. As a result, there is no need to go through the time and effort of moving these assets into your trust. However, if, for example, the beneficiary is a minor or otherwise incapacitated, you can set up the trust as the recipient so that the assets will be administered through the trust for the benefit of the “true” beneficiary in the specific way that you describe.
5. Take Advantage of Increased FDIC Protection
The average bank account receives up to $250,000 in protection from the FDIC related to losses. For some, that amount may not be enough. When you have a trust, however, you have $250,000 of FDIC protection for each beneficiary (up to a certain limitation). It may be worth adding beneficiaries to take advantage of this extra protection.
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.
| Tips for Creating a Revocable Living Trust | Description |
|---|---|
| Put Out-of-State Assets in Your Trust | Transferring out-of-state properties into your trust can help avoid probate in multiple states, saving your family time and money. |
| Choose a Successor Trustee Carefully | Select a responsible person you trust to manage and distribute assets according to your wishes after your passing. |
| Create an Incapacity Clause | Include provisions for your successor trustee to manage your affairs if you become incapacitated, potentially avoiding the need for guardianship or conservatorship. |
| Avoid Putting Unnecessary Assets in the Trust | Avoid transferring assets that already have designated beneficiaries, like life insurance policies, unless the beneficiary is a minor or otherwise incapacitated. |
| Take Advantage of Increased FDIC Protection | Adding beneficiaries to your trust may increase FDIC insurance coverage for your accounts, offering enhanced financial protection. |
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) 785-4453 to secure your assets and your future with the help of a trusted professional.
