Attorneys helping families in Haddonfield and all of South Jersey create trusts as a means of wise estate planning
New Jersey trust attorneys at Price and Price, LLC know that the creation of trusts can be a key part of a smart and effective estate planning strategy. You want to protect and preserve your wealth. Preparing a trust has a number of benefits, including maintaining privacy, saving on estate taxes, avoiding probate and having the ability to pass down your assets in the manner you prefer.
For more the 40 years, Price and Price has helped steer clients toward their financial planning goals. Our attorneys bring valuable experience and qualifications to every legal matter they handle. We have a lawyer with a certified elder law attorney designation from the National Elder Law Foundation. Another has a Master of Laws in Taxation Degree.
If you are ready to get legal guidance from the largest elder law firm in South Jersey, call Price and Price immediately to arrange a consultation: 866-270-3513. We also have the ability to speak with clients using Skype and FaceTime.
What types of trusts can Price and Price create for clients?
There are many types of trusts with different benefits. We realize you might have a lot of questions and may not know which trust is right for your circumstances. You can review the following and see if any of them aligns with your goals. If you have any questions and want to get advice from an attorney, contact Price and Price today to arrange a consultation.
- Revocable trusts
- Irrevocable trusts
- Living trusts
- Testamentary trusts
- Charitable trusts
- Asset protection trusts
- Spendthrift trusts
- Special needs trusts
- Qualified personal residence trusts
- Qualified terminal interest property
With revocable trusts the creator of the trust remains in control of the trust while alive and can make changes as they see fit at any time. The benefit: As circumstances change you can adjust your approach.
With irrevocable trusts the creator is no longer in control of the assets permanently and changes can't be made. The benefit: No matter what circumstances change you can't be manipulated into changing your mind. And, depending on the construction of the trust, you may be able to reduce or avoid estate taxes.
Simply refers to trusts that are created while the creator is still alive.
These are typically created in a will, and take effect upon probate or administration of the will. The benefit: You can control the timing and amount of the distribution of assets for the beneficiaries of your estate.
Charitable trusts can be created as living trusts or as testamentary trusts. Charitable trusts are a vehicle for asset distribution to a charity or nonprofit organization of your choosing after death. There are many types of charitable trusts including but not limited to:
- Charitable lead trusts: At a minimum the income from the trust is distributed annually to the designated charity for a pre-defined term. All assets that remain in the trust by the end of the pre-defined term are then transferred to the designated beneficiaries.
- Charitable remainder unitrust (CRUT Trust): These trusts allow charities to receive a fixed annual percentage of the remaining value of the trust as determined on the first day of each tax year of the trust. The trust assets must be revalued annually.
- Charitable remainder annuity trusts (CRAT Trust): These trusts allow charities to receive a fixed annual interest on the principle amount of a trust for a specific term not allowed to exceed twenty years. Upon the end of the pre- defined term the principle is distributed to one or more charitable organizations.
These types of trusts are intended specifically to protect estate assets from creditors and the cost of long-term medical care. Asset protection trusts are consistently under federal scrutiny.
These trusts are created in order to prevent beneficiaries from squandering their inheritance. The assets come with rules and stipulations as to how the assets can be used. These trusts are very helpful with beneficiaries that have proven to be financially irresponsible.
Special needs trusts are intended maximize the financial benefits available for a person with special needs - physical or mental. These trusts are often set up to supplement the care provided for the by the state in a way that ensures they will not lose their needs-based government benefits.
These trusts will reduce the value of the Grantor's house for federal and state estate tax purposes. The house is transferred into an irrevocable living trust and the Grantor is provided the right to live in the home for a pre-established period of time. When the pre-established period of time is up, the home is then passed down to the remaining beneficiaries.
These trusts allow for people who have children from a previous marriage to both preserve their child's inheritance and provide for their new spouse while at the same time reducing potential estate taxes.