New Jersey Trust Attorney
Planning your estate with a professional attorney will allow you to protect and manage your funds now, while you are alive.
A trust can change how your family handles wealth, property, and care decisions for generations. When the goal is privacy, control, or protection for a child with special needs, the right structure makes the difference between a plan that works and a document that creates new problems. New Jersey families can choose from a range of estate planning options, and determining the best approach depends on their unique goals and circumstances.
Christine Matus has guided New Jersey families through trust planning since 1995. As the founder of Matus Law Group and a parent of a child with special needs herself, she brings personal understanding to every plan. Our New Jersey estate planning attorneys can provide guidance on revocable and irrevocable trusts, how special needs trusts work, and what type of trusts can complement your estate plan. Our Monmouth County and Ocean County offices serve clients across the state.
This guide explains what a trust does under the New Jersey Uniform Trust Code, why families choose trusts over wills, the main types available, how New Jersey taxes trust transfers, the duties trustees take on, how to create and fund a trust properly, and when to update one. To speak with a New Jersey trust attorney about your situation, call the Matus Law Group at (732) 281-0060.
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With over 20 years of experience, we are been New Jersey’s prominent estate planning lawyers. Here to assist in the matters of estate planning, estate administration, probate matters, special needs planning, elder law and Medicaid planning, and more. Contact Matus Law Group, headed by a top-rated estate planning Attorney Christine Matus to schedule a consultation today.
What Is a Trust Under New Jersey Law?
A trust is a legal arrangement in which one person (the grantor or settlor) transfers property to another person (the trustee) to hold and manage for the benefit of a third party (the beneficiary). The trust document spells out the rules, including the responsibilities of the trustee, when beneficiaries receive distributions, and how the trust is terminated.
New Jersey governs trusts under the Uniform Trust Code, codified at N.J.S.A. 3B:31-1 et seq. The state adopted the code in 2016, creating a broad statutory framework for trust creation, administration, modification, and termination. The code defines trust validity, trustee duties, beneficiary rights, and the rules for modification or termination.
Three roles define every trust:
- Grantor (or settlor): The person who creates the trust and transfers assets into it.
- Trustee: The person or institution responsible for managing trust property and following the trust terms. The trustee has a legal duty to act in the beneficiaries’ best interest.
- Beneficiary: The person or people who receive the benefit of the trust property. Beneficiaries can be current (entitled to distributions now) or remainder (entitled after a triggering event).
One person can hold more than one role. A grantor can name themselves trustee of a revocable living trust, for example, and remain in control while they are alive. This flexibility is one reason trusts have become a central piece of New Jersey estate planning.
Setting up the right structure starts with a clear conversation about your goals. The Matus Law Group can walk you through how each role works for your family. Contact us today to schedule a consultation.
Why Do New Jersey Families Choose Trusts Over Wills?
A will alone passes property through probate, the court process that validates the document and oversees distribution. Probate in New Jersey is faster than in many states, but it still creates a public record, costs filing fees, and can stretch over months when the estate is contested or includes property in multiple counties. A trust lets families avoid most of that.
Several practical reasons push New Jersey families toward trust planning:
- Privacy. Trust documents stay private. Wills become part of the public record once filed with the county Surrogate’s Court.
- Probate avoidance. Property held in a properly funded trust passes directly to beneficiaries without court involvement.
- Control over timing. A trust can release funds at specific ages or milestones, rather than as a single lump sum.
- Protection from creditors. Certain irrevocable trusts shield assets from creditors and long-term care costs.
- Continuity during incapacity. A trustee can manage trust property if you become unable to handle your own affairs, without a court-appointed guardian.
- Reducing family disputes. Clear written rules in a trust can head off arguments about who inherits what.
A trust does not replace a will entirely. There are some matters that trusts cannot cover, such as the guardianship of minor children. To address this, most New Jersey estate plans pair a trust with a “pour-over will,” which is a backup document that catches anything you forgot to retitle into the trust and sends it there at death. The two documents work together.
Key Takeaway: Trusts give New Jersey families privacy, control, and probate avoidance that a will alone cannot provide. Most plans use both documents together.
Christine Matus often recommends a coordinated will-and-trust strategy for Monmouth County families with real estate, retirement accounts, and minor children. Reach the Matus Law Group at (732) 281-0060 to discuss your options.
New Jersey Trust Attorney – Matus Law Group
Christine L. Matus, Esq.
Christine Matus, founder of Matus Law Group, earned her Bachelor of Arts in Economics from Douglass College, Rutgers University in 1992, and her Juris Doctor from the Jacob D. Fuchsberg Law Center at Touro College in 1995. While in law school, she served as Senior Staff of the International Law Review and received the highest academic award for the Civil Rights Law Clinic. Christine was admitted to the Bar of the State of New Jersey and the U.S. District Court of New Jersey in 1995.
Christine serves on the Attorney Arbitration Committee, former Board of Trustees Secretary and President of the Ocean County Bar Association, and contributes to several nonprofit boards, including 21 Plus and MOCEANS, Inc. She is a member of the New Jersey State Bar Association, the Asian Pacific American Lawyers Association, and the American Bar Association, where she serves on its Advisory Panel. Christine has been recognized on the New Jersey Super Lawyers list every year from 2019 through 2026.
What Types of Trusts Are Available in New Jersey?
New Jersey law recognizes many different trust structures. Each one solves a different problem, and the right choice depends on your goals, your family situation, and the assets you want to protect. The most common types fall into a few categories.
Revocable Living Trust
A revocable living trust is created during your lifetime and can be changed or canceled at any time while you are alive. You typically serve as your own trustee, retitling assets like real estate and bank accounts into the trust’s name. After your death, a successor trustee takes over without any court process.
The main advantage is probate avoidance. The main limitation is that, because you keep full control, the assets remain part of your taxable estate and are not protected from creditors. A revocable living trust is not an asset protection tool. It is a probate avoidance tool.
Irrevocable Trust
An irrevocable trust cannot be easily changed once it is signed. While an irrevocable trust requires you to relinquish some control over the assets you transfer, it can provide substantial benefits. Those assets are generally excluded from your taxable estate, protected from most creditor claims, and, after the Medicaid five-year lookback period, not considered for Medicaid long-term care eligibility purposes.
Families often use irrevocable trusts to protect a primary residence from nursing home costs, hold life insurance proceeds outside the estate, or pass on a business to the next generation. The trade-off is permanent. Once the assets are titled to the trust, the trust owns the assets.
Special Needs Trust
A special needs trust holds assets for a person with a disability without disqualifying them from means-tested public benefits like Supplemental Security Income (SSI) and Medicaid. Federal law authorizes these trusts under 42 U.S.C. § 1396p(d)(4)(A), and they are a widely used planning tool for New Jersey families seeking to protect assets while preserving eligibility for public benefits.
Trust funds can pay for needs that public benefits do not cover, such as therapy, transportation, education, recreation, and personal care items, while the beneficiary’s eligibility for SSI and Medicaid stays intact. Christine Matus has built much of her practice around special needs planning, drawing on her own experience as a parent of a child with special needs.
Spendthrift Trust
A spendthrift trust includes a clause that prevents the beneficiary from selling, assigning, or pledging their interest in the trust. It also blocks most creditors from reaching trust assets before they are distributed. New Jersey recognizes spendthrift provisions under N.J.S.A. 3B:31-36.
These trusts work well when the grantor is concerned that a beneficiary may struggle with money management, face creditor problems, or go through a divorce. The trustee controls distributions, so the funds support the beneficiary without exposing the principal.
Testamentary Trust
A testamentary trust is created through a will and only takes effect after the grantor’s death. Since a testamentary trust is established through a will, the assets are transferred to the trust only after the probate process is completed. Families often use testamentary trusts to hold inheritances for minor children, releasing funds at ages chosen by the parent (such as 25, 30, and 35).
The tradeoff is that probate remains part of the process, so you do not receive the privacy and streamlined administration benefits of a living trust. The benefit is simplicity, since the trust is established through the will and does not require a separate trust document during your lifetime.
New Jersey recognizes revocable, irrevocable, special needs, spendthrift, and testamentary trusts, each with different protections and trade-offs. Choosing the right one depends on your goals and family situation.
A New Jersey trust attorney can walk you through which structure fits your situation. The Matus Law Group has helped Ocean County families select and customize trusts for over three decades.
How Does New Jersey Tax Trusts and Inheritance?
New Jersey’s tax landscape changed significantly in 2018, when the state estate tax was repealed. Today, New Jersey imposes no separate estate tax, regardless of estate size. The federal estate tax still applies, but only to estates exceeding the federal exemption, which is well above what most families ever reach.
What did not go away is the New Jersey inheritance tax, codified at N.J.S.A. 54:34-1. The inheritance tax applies based on the relationship between the deceased and the person inheriting, not the size of the estate.
| Beneficiary Class | Relationship | Tax Rate |
|---|---|---|
| Class A | Spouse, child, parent, grandparent, grandchild | 0% |
| Class C | Sibling, son- or daughter-in-law | 11% to 16% |
| Class D | Friend, niece, nephew, unrelated person | 15% to 16% |
| Class E | Charity, government, religious organization | 0% |
Trust planning can structure how property passes to reduce or eliminate inheritance tax exposure for non-Class A beneficiaries. For income tax purposes, trusts are classified as either grantor trusts (income reported on the grantor’s personal return) or non-grantor trusts (the trust itself files Form 1041 and pays tax). The classification depends on how much control the grantor keeps.
Key Takeaway: New Jersey has no estate tax, but the inheritance tax still applies based on the beneficiary’s relationship to the deceased. Trust structure can significantly affect what your family pays.
Christine Matus and the Matus Law Group can review your beneficiary list and recommend trust strategies that minimize New Jersey inheritance tax exposure.
What Are the Duties of a Trustee Under the New Jersey Uniform Trust Code?
A trustee holds significant legal responsibility. Under N.J.S.A. 3B:31-55 and following sections, the trustee must follow the trust terms exactly, manage property prudently, and put the beneficiaries’ interests ahead of their own. These duties are enforceable in court. A trustee who breaches them can be removed, surcharged, or sued personally for damages.
The core duties include:
- Duty of loyalty. The trustee must act solely in the beneficiaries’ interest. Self-dealing is prohibited unless the trust allows it.
- Duty of prudent administration. The trustee must manage trust assets with reasonable care, skill, and caution under the Prudent Investor Act (N.J.S.A. 3B:20-11.1).
- Duty to inform. The trustee must keep beneficiaries reasonably informed about the trust and its administration.
- Duty of impartiality. When more than one beneficiary exists, the trustee must treat them fairly and follow the trust terms about distributions.
- Duty to account. The trustee must keep accurate records and provide accountings on request or as the trust requires.
- Duty of confidentiality. Trust matters stay private, except when the law or the beneficiaries require disclosure.
Many New Jersey families name a relative as trustee. That works for simple trusts, but a complicated trust, with tax filings, real estate, business interests, or special needs planning, often calls for a professional trustee or co-trustee. Choosing the right person, and giving them the right guidance, is one of the most important decisions in any trust plan.
Key Takeaway: Trustees in New Jersey must follow strict fiduciary duties under N.J.S.A. 3B:31-55. A trustee who breaches these duties can face personal liability. Reaching out to a skilled trust attorney before naming a trustee can help your family avoid problems later. The Matus Law Group serves families throughout the state and across the state.
Get in touch:
Call now to make an appointment to discuss your legacy planning needs with top NJ estate attorney Christine Matus. We are here to answer any questions you may have about planning for your future. These include questions about estate tax, estate and gift rules, different types of power of attorney, and much more (732) 785-4453.
How Do You Create and Fund a Trust in New Jersey?
Creating a trust takes more than signing a document. To work properly, a trust must be drafted under New Jersey law, executed correctly, and funded with the assets it is meant to hold. Skipping the funding step is the most common mistake. An unfunded trust controls nothing.
The process generally involves these steps:
- Define your goals. Decide what the trust needs to accomplish, such as probate avoidance, asset protection, special needs planning, tax savings, or some combination.
- Choose the type of trust. Match the structure to the goal. Revocable trusts handle probate avoidance well; irrevocable trusts handle asset protection.
- Select a trustee and a successor trustee. Pick someone trustworthy, organized, and willing to take on the responsibility.
- Identify the beneficiaries. Be specific about who receives what and when.
- Draft the trust document. This is where careful legal drafting matters most. Vague language creates problems years later.
- Sign and notarize. New Jersey requires the grantor’s signature, and notarization is standard practice for evidentiary purposes.
- Fund the trust. Retitle real estate by recording new deeds, changing account ownership, and updating beneficiary designations on retirement accounts and life insurance.
Funding deserves particular attention. Real estate must be transferred by a deed recorded with the county clerk where the property sits. Bank and brokerage accounts must be retitled in the trust’s name. Retirement accounts (IRAs, 401(k)s) generally should not be retitled into the trust during your lifetime, because federal rules treat them as individual accounts, but you can name the trust as beneficiary in many cases.
Key Takeaway: A trust only controls property that has been formally transferred into it. Funding the trust correctly is as important as drafting it.
The Matus Law Group walks every client through the funding process, including coordination with banks, title companies, and retirement plan administrators. Call the Matus Law Group at (732) 281-0060 to schedule a consultation.
Can a Trust Be Modified or Terminated?
Yes, but the rules depend on whether the trust is revocable or irrevocable. The New Jersey Uniform Trust Code provides several pathways for modification and termination.
A revocable trust can be amended or revoked at any time during the grantor’s lifetime, as long as the grantor has legal capacity. The grantor signs an amendment or a complete revocation, and the change takes effect immediately. After the grantor’s death, the trust becomes irrevocable.
An irrevocable trust is harder to change, but not impossible. N.J.S.A. 3B:31-27 allows modification or termination by court order if all beneficiaries consent and the change does not defeat a material purpose of the trust. N.J.S.A. 3B:31-28 allows judicial modification if circumstances have changed in ways the grantor did not anticipate. New Jersey also recognizes “decanting” under state common law, which lets a trustee transfer assets from one irrevocable trust to a new trust with updated terms.
These tools exist because life changes. A trust drafted twenty years ago may no longer reflect current tax law, family circumstances, or the grantor’s wishes. Reviewing and updating trusts periodically keeps the plan working as intended.
Key Takeaway: Revocable trusts can be changed at any time. Irrevocable trusts can sometimes be modified through court approval, beneficiary consent, or decanting under New Jersey law.
If your existing trust no longer fits your situation, The Matus Law Group can review the document and explain your options. Call the Matus Law Group at (732) 281-0060 to schedule a consultation.
Get in Touch With Our Law Office:
Attorney Christine Matus networks with some of the finest local real estate property appraisers in NJ. This rich network of contacts helps to ensure that you will get the best quality support when appealing taxes with the local county tax offices.
Call now to make an appointment to discuss your NJ real estate needs with top NJ real estate lawyer Christine Matus.
We are here to help. Contact us at (732) 785-4453 or complete our online form.
When Should You Update Your Trust?
A trust is not a “set it and forget it” document. Life events trigger the need for review, and waiting too long can leave your family dealing with outdated terms. New Jersey lawyers typically recommend a review every three to five years, plus an immediate review after major events.
Common reasons to update a trust include:
- Marriage, divorce, or remarriage
- Birth or adoption of a child or grandchild
- Death of a beneficiary or trustee
- A move to or from New Jersey
- Significant changes in assets, such as an inheritance, business sale, or real estate purchase
- Diagnosis of a serious illness
- Changes in tax law that affect your strategy
- A child or grandchild developing special needs
Updates can be small (replacing a successor trustee) or large (rewriting the trust entirely). Either way, the work is much easier than dealing with the consequences of an outdated trust after a family member has passed away.
Schedule a trust review with The Matus Law Group at (732) 281-0060.
Start Planning With a New Jersey Trust Attorney Today
The process of creating and drafting a trust touches some of the most important decisions a family makes, including what happens to your home, your savings, and the people you love when you are gone or unable to manage things yourself. The right plan brings peace of mind. A plan that doesn’t take your and your family’s future into account can bring problems your family will deal with for years.
Christine Matus has spent more than three decades helping New Jersey families plan their estates and protect their assets. The Matus Law Group serves clients from offices in Red Bank (Monmouth County) and Toms River (Ocean County), and works with families across the state. From a simple revocable living trust to a special needs trust for a child or a comprehensive plan that combines multiple strategies, our team of New Jersey trust attorneys can guide you through the process.
Call the Matus Law Group at (732) 281-0060 to schedule a consultation. Our Ocean County office is located at 81 East Water Street, Suite 2C, Toms River, NJ 08753. We look forward to discussing your trust planning goals
Frequently Asked Questions About Trusts in New Jersey
Do I need a trust if I already have a will?
Many families benefit from having both. A will directs how property passes through probate, but a trust lets property pass outside probate entirely, saving time, expense, and privacy. A trust is also the only way to hold special needs assets without affecting public benefits.
How much does it cost to set up a trust in New Jersey?
Costs vary based on complexity. A simple revocable living trust generally costs less than a complex irrevocable trust with special needs planning or business succession components. The Matus Law Group provides clear fee information at the consultation stage.
How long does it take to create a trust?
Drafting and creating trusts may take two to four weeks from the initial meeting to the signing appointment, depending on the complexity of the document and how quickly assets can be retitled. Funding the trust often continues for several weeks after signing.
Who pays the taxes on trust income?
It depends on whether the trust is a grantor trust or a non-grantor trust. Grantor trust income is reported on the grantor’s personal return (Form 1040). Non-grantor trusts file their own return (Form 1041) and pay tax at trust rates, which reach the top bracket much faster than individual rates.
Can I be the trustee of my own trust?
For a revocable living trust, yes, and you typically should be. You keep full control during your lifetime. For an irrevocable trust intended to remove assets from your estate, you generally cannot serve as trustee without losing the tax and creditor protection benefits.
What happens to a trust if I move out of New Jersey?
The trust continues to exist, but the law that governs it may change depending on the trust terms and the new state’s rules. Many trusts include a “governing law” clause that keeps New Jersey law applicable even after a move. Reviewing the document with a New Jersey trust attorney before relocating is a good idea.
