Living trusts are created by an estate planning attorney in Lincoln Park, NJ while the client is still alive, and they allow the trustee and their beneficiaries to avoid the cost and hassle of probate. One can be the trustee of their own trust, thereby retaining control of all property within. Living trusts can help people avoid probate, reduce estate taxes, and set up a long-term method of property management.
How Living Trusts Avoid Probate
Parties can avoid probate when transferring property into a living trust before death. The person appointed to handle the trust after the person’s passing, known as a successor trustee, passes property to beneficiaries named in the trust. The process is quick, and no fees are involved. Once property is passed to the appropriate beneficiary, the trust no longer exists.
Which Is Easier: Creating a Trust or Writing a Will?
Living trusts are as simple as wills in most cases, but they’re not right for everyone. These trusts are very flexible, and multiple types of property may be included. There are some differences between trusts and wills:
* Creating and maintaining a trust takes longer than drafting a will.
* Lawyers’ fees may be higher.
* Those with larger estates can save by using a living trust.
* Older people with shorter lifespans may find that a trust allows them to have more control over the disposition of their assets.
* Wills are better for those not near the end of life.
* Those who are married can leave the estate to a spouse through joint tenancy, and bank accounts can be held in the same way. If one lives in a state with community property laws, however, probate is cheaper, faster, and not as important to avoid.
Does Every Case Need an Estate Planning Attorney?
A consultation with an estate planning attorney in Lincoln Park, NJ from Larrygoodmanlaw.com is critical in creating an estate plan that meets the needs of the trustee and their family. A lawyer can help a client determine which type of trust or will is appropriate, and they can work to limit or eliminate a person’s tax liability.
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