New Jersey Living Trust Attorney
A living trust ensures that your assets will be distributed according to your wishes and makes the situation as stress-free as possible for your heirs.
A revocable living trust is an estate planning tool that lets you place suitable property in a trust during your lifetime and set instructions for how that property should be managed if you become incapacitated and distributed after your death. While you are alive and have capacity, you generally retain the ability to amend or revoke the trust. When property is properly transferred to the trust, it can pass to beneficiaries outside probate after your death.
At Matus Law Group, our New Jersey living trust attorneys can help determine whether a revocable living trust fits your goals, draft terms that address your property and beneficiaries, and guide the funding steps needed to put the trust into effect. Our team can also coordinate the trust with a pour-over will and beneficiary designations so each part of the estate plan has a clear role.
This page explains how living trusts work under New Jersey law, which assets can be transferred to a trust or handled through other estate planning methods, how beneficiary distributions can be structured, and what costs and tax issues can arise. Call (732) 281-0060 to speak with our NJ estate planning attorney about your living trust planning needs.
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Get My Free ScoreWhy New Jersey Families Choose a Living Trust
A revocable living trust can let you serve as trustee and retain control over property transferred to the trust during your lifetime. You can also name a successor trustee to take over when the trust’s incapacity provisions are met or after your death. The successor trustee can then manage or distribute trust property under the trust terms without putting that trust property through probate.
New Jersey’s Uniform Trust Code makes revocability the default for trusts covered by N.J.S.A. 3B:31-43. Unless the trust expressly provides that it is irrevocable, or clear and convincing evidence shows that the settlor intended it to be irrevocable, the settlor can revoke or amend it. This rule does not apply to a trust created under an instrument executed before the Uniform Trust Code took effect. The distinction affects the settlor’s control and the planning options available:
- Revocable living trust: The settlor can amend or revoke the trust as permitted by New Jersey law and the trust terms and can retain control over trust property.
- Irrevocable trust: The settlor does not retain a unilateral right to revoke the trust. Depending on its terms and the rights retained by the settlor, an irrevocable trust can serve asset protection or long-term care planning goals.
Key Takeaway: Keeping the power to revoke the trust gives you flexibility during your lifetime, but it does not by itself remove trust property from your federal gross estate.
Choosing between revocable and irrevocable planning affects how much control you retain and how the trust fits with asset protection or long-term care goals. Matus Law Group can help you review which structure fits the purpose of your estate plan. Call (732) 281-0060 to discuss your options.
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Attorney Christine Matus (a special needs parent herself) and the entire team at Matus Law Group are here to help protect your family’s future today
Call now to make an appointment and discuss special needs planning (732) 281-0060.
How a Revocable Living Trust Works in New Jersey
A living trust is created during your lifetime, and you can serve as your own trustee. You decide which assets to transfer based on your estate plan and the type of property you own.
After funding, property transferred to the trust is held and administered under the trust terms. Some property can remain outside the trust. A pour-over will can direct probate assets left outside the trust into it after death.
For the trust to control an asset during your lifetime, the asset must be properly transferred to or otherwise held under the trust. Other assets can pass to the trust at death through a valid beneficiary designation without going through probate.
If you become incapacitated, a successor trustee can take over management of trust property when the trust’s succession terms are met. This can avoid the need for a separate court appointment to manage those trust assets. After your death, the successor trustee can administer and distribute trust property under the trust terms.
Matus Law Group can review asset ownership, funding steps, and successor trustee provisions so they are properly addressed in the trust plan. Call (732) 281-0060 to schedule a consultation.
Step-by-Step Guide to Creating a Living Trust in New Jersey
Creating a living trust involves planning, proper execution, funding, and later maintenance. The steps below outline the main parts of the process.
- Choose the trust type. Determine whether your estate planning goals call for a revocable or irrevocable structure.
- List your assets and goals. Decide which property you want the trust to address, who should receive it, and any conditions you want to include.
- Name your trustee and a backup. You can serve as the initial trustee and keep control while you are alive and well.
- Draft the trust agreement. An attorney can tailor the terms to New Jersey law, your family, and your assets and coordinate the trust with your will and account beneficiary designations.
- Sign the trust agreement correctly. Follow the execution requirements for the trust and any related transfer documents. New Jersey real estate deeds transferred to the trust must also meet the applicable county recording requirements.
- Fund the trust. Retitle eligible nonretirement financial accounts, assign suitable personal property, and record deeds for New Jersey real estate as required so those assets are held and administered under the trust.
- Add a pour-over will. This directs probate assets left outside the trust into the trust after death. Those assets still pass through probate before they reach the trust.
- Maintain the trust and address tax filings. Keep records, review the plan after major life events, and file required federal and state tax returns.
Matus Law Group can prepare the trust, handle deed work when real estate is being transferred, and guide you through the funding steps for your plan. Call (732) 281-0060 for assistance.
Key Takeaway: Funding is not the same for every asset. Some property must be transferred to the trust, while other assets can remain outside it and pass through a beneficiary designation, survivorship arrangement, or another valid nonprobate method.
What Assets Can You Place in a Living Trust
Many types of property can be coordinated with a living trust, but the transfer method depends on the asset. Some property can be transferred during your lifetime through a deed, retitling, or assignment, while retirement accounts and life insurance involve separate ownership or beneficiary decisions.
The table below shows how common assets can fit into a revocable living trust plan.
| Asset | How It Can Fit Into the Plan | Important Point |
|---|---|---|
| New Jersey real estate | Real estate can be transferred to the trust through a deed | The deed must meet New Jersey recording requirements and be recorded in the county where the property is located |
| Bank, brokerage, stocks, and bonds outside retirement accounts | Accounts can be retitled, while directly held securities can be transferred through the financial institution or transfer agent | The required forms and transfer process depend on how the account or investment is held |
| Business interests | An ownership interest can be transferred when the governing documents and applicable restrictions permit it | Operating agreements, shareholder agreements, or other transfer restrictions should be reviewed first |
| Life insurance | Policy ownership and beneficiary designations can be addressed separately as part of the estate plan | Naming a trust as beneficiary is different from transferring ownership of the policy |
| Personal property and cash | Suitable property can be assigned or transferred to the trust | The documentation needed depends on the type of property |
| IRAs and employer retirement plans | Do not retitle these accounts into a revocable living trust during your lifetime | A trust can be named as beneficiary when the account or plan permits it. Retirement distribution rules apply, and some employer plans require spousal consent to name another beneficiary |
Assets acquired after the trust is signed should also be reviewed. A new account or later property purchase does not become part of the trust automatically, so ownership and beneficiary choices should be checked as your estate plan changes.
Before you retitle property or submit beneficiary forms, Matus Law Group can review which assets should be transferred to the trust, which should remain outside it, and when a beneficiary designation or another transfer method better fits the estate plan.
New Jersey Living Trust Attorney, Matus Law Group
Christine Matus, Esq.
Christine Matus is the Founder of Matus Law Group and has practiced law in New Jersey since 1995. She earned her J.D. from the Touro College Jacob D. Fuchsberg Law Center in 1995 and her B.A. in Economics from Douglass College, Rutgers University, in 1992. She was admitted to the New Jersey Bar and the U.S. District Court for the District of New Jersey in 1995 and also studied International Criminal Law and Ethics at St. Anne’s College, Oxford University, in 1993.
Christine handles estate planning, living trusts, special needs planning, elder law, and related matters involving the protection and transfer of assets. Her experience with trust and estate planning allows her to help clients consider how a living trust may fit with their property, beneficiary arrangements, and broader estate planning goals. She lectures on special needs planning, real estate, and nonprofit matters, has contributed to Turning Point, and coauthored elder law articles addressing nursing home rights and OBRA 1993. Christine also volunteers as a mediator with the Superior Court of New Jersey, Special Civil Part.
How Trust Assets Are Distributed to Your Beneficiaries
After you pass away, the successor trustee will administer and distribute trust property under the trust terms. Common distribution approaches include outright, staggered, and discretionary distributions, and one trust can use different approaches for different beneficiaries.
- Outright distributions: You can opt to give assets directly to beneficiaries without restriction.
- Staggered distributions: You can opt to give assets over time as staggered payments or upon triggering events.
- Discretionary distributions: You can give the trustee discretion over when and how much a beneficiary receives. Special needs trusts can use discretionary distributions. A spendthrift provision serves a different purpose because it restricts a beneficiary’s ability to transfer the trust interest and can limit creditor access before distribution.
The trust can also address what happens if a beneficiary dies before receiving a full distribution and how the remaining share should be handled.
The Matus Law Group can draft distribution provisions that reflect when and how each beneficiary should receive a share. If a beneficiary receives means-tested public benefits, she can also review whether separate special needs planning should be part of the estate plan. Call (732) 281-0060 to discuss how you want a beneficiary’s share managed.
Who Can Serve as Successor Trustee of Your Trust?
The successor trustee has significant responsibilities, so the selection should account for the work the trust may require. This is the person or institution that can take over administration of the trust when the succession provisions are triggered.
The successor trustee must manage trust property under the trust terms, their applicable fiduciary duties, and file the required tax returns. N.J.S.A. 3B:31-67 also addresses when beneficiaries are entitled to information about trust administration and copies of the trust instrument. The scope of those disclosure duties can depend on the trust terms and the beneficiary’s rights under the Trust Code.
You can choose a trusted individual, such as a family member, friend, or professional trustee. An institution authorized to provide trustee services, such as a bank or trust company, can also serve if it accepts the appointment. The right choice depends on the trust property, the work involved, and the person’s or institution’s ability to carry out fiduciary duties.
Benefits of a Living Trust: Is It Right for You?
A revocable living trust can be useful in some estate plans, but its value depends on the property you own, your beneficiaries, and how you want assets managed or transferred.
When reviewing whether a living trust fits your estate plan, an attorney may ask:
- Will it benefit your beneficiaries to avoid probate?
- Do you own real property in other states?
- Are there children from previous marriages who may be at risk of disinheritance?
- Is your spouse, or are any of your other beneficiaries, capable of handling significant financial responsibilities?
- Do you have sons-in-law or daughters-in-law that you are concerned about in the case of divorce or your child’s death?
- Do you have beneficiaries who are at risk of losing public benefits if they receive an inheritance?
- Are there privacy concerns?
Probate avoidance is not equally important for every estate. New Jersey provides simplified procedures for certain small intestate estates. If the decedent leaves a surviving spouse, civil union partner, or domestic partner, the affidavit procedure can apply when the total real and personal assets do not exceed $50,000. If there is no surviving spouse, civil union partner, or domestic partner, one heir can use the affidavit procedure with the written consent of the remaining heirs when the total assets do not exceed $20,000.
Real estate in another state can create a separate probate proceeding where the property is located. Transferring that property to a properly drafted and funded trust can help avoid that proceeding, subject to that state’s law. For beneficiary planning, trust terms can control when and how a share is distributed and address special needs planning when appropriate. A living trust can also provide more privacy because its terms do not have to be filed in probate court to transfer property already held in the trust.
The Matus Law Group can review whether a revocable living trust fits your planning goals or whether another trust structure or beneficiary provision would better address them. Call (732) 281-0060 to discuss your legal options.
Do You Still Need a Will With a Living Trust?
A living trust does not replace every function of a will. A will can still perform important estate planning tasks that the trust cannot.
A will still has an important role when:
- You have minor children: A will lets you nominate the person you want to serve as guardian for your minor children after your death.
- You have probate assets outside the trust: A pour-over will can direct those assets into the trust after death, but they must pass through probate first. Property with a valid beneficiary designation, survivorship arrangement, or another nonprobate transfer follows that arrangement instead. Without a valid will, remaining probate property passes under New Jersey intestacy law.
Matus Law Group can coordinate the pour-over will with the living trust and identify which assets still need a separate beneficiary or ownership arrangement.
Living Trust Costs, Taxes, and Ongoing Upkeep
Cost depends on the size of your estate and the work required to draft and fund the plan. A revocable living trust plan can involve the trust agreement, related estate planning documents, deed work, and other funding steps. Business interests, real estate in another state, or special needs provisions can require additional planning, and county recording fees can apply when New Jersey real estate is transferred.
Under N.J.S.A. 3B:31-39, property in a revocable trust remains subject to claims of the settlor’s creditors during the settlor’s lifetime. If the settlor retains a power to revoke the trust at death, property subject to that power is included in the federal gross estate. New Jersey does not impose an estate tax on individuals who died on or after January 1, 2018, but it still imposes an inheritance tax based on factors such as the beneficiary’s relationship to the decedent and the property transferred. A living trust does not eliminate that tax by itself. For New Jersey income tax, a grantor trust must file Form NJ-1041. The state also has a separate filing rule for resident estates and trusts with more than $10,000 of gross income.
Review the trust after a marriage, divorce, birth, death, property purchase, or move to another state, and check how new accounts and property are owned so each asset follows the transfer method in your estate plan. Matus Law Group can review whether those circumstances call for updates involving the trust, deeds, beneficiary designations, business interests, or special needs provisions. If a transfer raises tax questions, the estate plan can also be coordinated with your tax professional before ownership is changed. Call (732) 281-0060 to schedule a consultation.
Living Trust Attorneys Serving All of New Jersey
Matus Law Group prepares and funds living trusts for clients throughout New Jersey, with a concentration of estate planning work in Ocean County and the surrounding shore communities. When trust funding includes New Jersey real estate, the deed is recorded with the county recording office where the property is located.
We serve clients in Atlantic, Bergen, Burlington, Camden, Cape May, Cumberland, Essex, Gloucester, Hudson, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Salem, Somerset, Sussex, Union, and Warren counties. For clients with property in more than one county, we can coordinate the trust and related deed work for those properties as part of one estate plan.
Speak With a New Jersey Living Trust Attorney
A living trust should address who can manage trust property if you become incapacitated, how that property should be handled after your death, and how the trust fits with assets that pass outside it.
Our New Jersey living trust attorneys can review your family circumstances, property, and existing estate planning documents to determine how the trust should be structured. Our attorneys can draft a living trust that works with the rest of your estate plan and reflects how you want your property managed during your lifetime and passed on after your death.
Call Matus Law Group at (732) 281-0060 to schedule a consultation. Our office is located at 81 E Water St #2C, Toms River, NJ 08753. You can also learn more about our estate planning services on our home page.
Frequently Asked Questions
What is the difference between a revocable and irrevocable living trust?
A revocable trust lets the trustor amend or revoke it as allowed by New Jersey law and the trust terms. An irrevocable trust does not give the trustor that same unilateral power.
Does a living trust avoid New Jersey inheritance tax?
A living trust does not by itself eliminate New Jersey inheritance tax. Taxability depends on factors such as the beneficiary’s relationship to the decedent and the property transferred, even when an asset passes outside probate.
How much does it cost to set up a living trust in New Jersey?
Cost depends on the size of your estate, your planning needs, and the work the plan requires. A revocable living trust plan can involve trust drafting, related estate planning documents, and funding steps such as deed preparation. Matus Law Group can provide a fee quote after reviewing your planning needs. Call (732) 281-0060 to get started.
Can I change or cancel my living trust after it is created?
If the trust is revocable, you can amend or revoke it as permitted by the trust terms and New Jersey law.
What happens if I forget to fund an asset into my trust?
An asset that was not transferred to the trust is not controlled by it during your lifetime. At death, it may pass through a beneficiary designation or survivorship ownership, or it may enter probate and then pass under a pour-over will.
How long does it take to set up a living trust in New Jersey?
The timeline depends on how quickly asset information is gathered, documents are reviewed and signed, and funding steps are completed. Retitling accounts and recording deeds can take additional time because banks, county recording offices, and other third parties are involved.
Who should I name as my successor trustee?
Choose someone who is willing and capable of handling the trust’s financial and administrative duties. You can name a trusted individual, an institution authorized to provide trustee services, and one or more backups.
