Sussex County Trust Attorneys 

Knowledgeable New Jersey law firm helps protect and distribute assets 

A trust can be a valuable estate planning instrument depending on your financial situation and goals. Our dedicated Sussex County trust attorneys at Hollander, Strelzik, Pasculli, Vandenberg, Hontz & Associates LLC, can explain how a trust may fit into your overall estate plan and help establish one tailored to your needs. We provide knowledgeable guidance on revocable and irrevocable trusts to North Jersey clients from our offices in Newton and Succasunna.  

Why are trusts used in estate planning?

There are several reasons why people use trusts in their overall estate plans. A key advantage is that assets held in a trust do not have to pass through the often lengthy and complicated probate process. This means that beneficiaries can obtain the property left to them more quickly. Trusts also allow you to maintain control of how your wealth is distributed, even after you pass away. They can be used to minimize tax burdens, protect assets from creditors and provide care for minor children or disabled family members. Our Sussex County estate planning lawyers will counsel you about ways that a trust might accomplish your objectives.  

The difference between a will and a trust

Both wills and trusts are used to pass assets to beneficiaries, but there are differences between these two types of estate planning instruments. A will takes effect after death and, unlike a trust, is administered through the probate process. Once the probate is completed, bequests are distributed. With a trust, you put assets into it during your lifetime under the management of a trustee, which could be yourself. You set forth instructions as to how the property within the trust will be distributed. A trust allows you to put restrictions on when or how beneficiaries receive assets. Trusts are also private, whereas probate proceedings are public matters. Wills and trusts can work together in a comprehensive estate plan. Even if you have a trust, you should have a will that covers property not included in the trust. An attorney from our firm can advise you how types of estate planning instruments can serve your interests.

Choosing the right trusts for your needs

There are different types of trusts. Here are the most common types of trusts and how they are used:

  • Revocable — When you set up a revocable trust, you can change it or cancel it anytime during your lifetime. These instruments are sometimes referred to as living trusts. 
  • Irrevocable — Assets put into an irrevocable trust can lower the value of your estate, which might reduce or eliminate tax exposure. However, once an irrevocable trust is established, it cannot be changed without the consent of the beneficiaries or the court.
  • Generation-skipping — This type of irrevocable trust can be advantageous for wealthy families. It allows grandparents to skip a generation and leave assets directly to grandchildren, which keeps assets from being subjected to the estate tax twice. 
  • Charitable — Charitable trusts let you leave assets to worthy non-profit organizations while conferring tax benefits on you.

Another type of trust is a special needs trust. This trust allows disabled beneficiaries to receive financial support without affecting their eligibility for government benefits such as Medicaid or Supplemental Security Income. One of our NJ special needs trust attorneys can advise you about how to create this type of legal instrument for your family member. When we establish a trust for you, no matter what type it is, you can be sure that it will be valid under the law and in line with your estate planning goals. 

How to set up a trust in NJ

The basic steps to setting up a trust in New Jersey include:

  • Deciding on and listing the assets to include in the trust
  • Appointing a trustee, and possibly a successor trustee, to manage the assets and carry out the instructions provided in the trust document
  • Naming the trust beneficiaries and conditions that must be met for them to receive the specified assets 
  • Preparing the trust document

Our law firm will guide you through all of the steps in establishing a trust to ensure that your assets and those of your future beneficiaries are well protected. 

Administration of a trust in Sussex County

The trustee is responsible for trust administration, which includes managing the assets in the trust, record-keeping and paying taxes. Often, the person who created the trust, known as the grantor, will also serve as trustee. You can also name a successor trustee to fulfill the terms of the trust if the initial trustee is unable to do so because of death or another reason. If you are a trustee who has questions about your role, we can answer them for you and assist you with the management and distribution process.  

Contact an insightful trust attorney in New Jersey for assistance

Hollander, Strelzik, Pasculli, Vandenberg, Hontz & Associates LLC, prepares trusts for residents of Sussex and Morris counties, as well as other parts of New Jersey. To arrange a consultation, call 973-737-1023 or contact us online. Our offices are in Newton and Succasunna.