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Christopher Aiello
Understanding
Revocable Living Trusts
Often referred to as “inter vivos” trusts, revocable living trusts
are created while the trustee is living and can be changed or voided at any
time. The primary reason to enlist the help of estate lawyers
in NJ at Aiello, Harris, Marth,
Tunnero, Pastor & Shiffman, P.C. to create a revocable living
trust--as opposed to simply leaving assets to a friend or family member in your
will--is the avoidance of the probate process. Probates are the court
proceedings that oversee the execution of your will. These proceedings can be
costly and time-consuming. Creating a revocable living trust allows you to
leave specific assets to a beneficiary without going through probate
proceedings.
Creating a Trust
For a trust
document to be legally recognized, there are a few requirements for the
document itself. First, the document must be written. Oral trusts will not be
recognized in court. The document must be signed, dated and authorized by a
notary. Any and all assets (homes, cars, monetary assets, etc.) gifted to a
beneficiary must be clearly listed within the document, and the beneficiary or
beneficiaries must be clearly stated. A successor must be named to take over
the carrying out of the trust once the trustee dies. Additionally, any and all
deeds for any property or assets gifted to a beneficiary in the trust must be
transferred to the named beneficiary in order for the trust to be legally
recognized. The simplest way to ensure the document you have created is valid
and will be held up in court is to enlist the help of the experts at Aiello, Harris, Marth, Tunnero, Pastor &
Shiffman, P.C.
Limitations of
Revocable Living Trusts
While there are a number of clear advantages to trusts over wills,
there are a few limitations that should be noted.
Guardians
for minors cannot be named in a trust.
You
will not avoid estate taxes by leaving your estate to a beneficiary in a
trust.
You
cannot dictate how debts or taxes will be handled in a trust.
Children’s
property cannot be included in a trust.
Finding Help
Creating a Revocable Living Trust
A revocable living trust gives you the power to manage the
distribution of your assets during your lifetime. It gives you more control
over these assets while you are alive and gives you the power to amend or void
the document at any time as life circumstances change. The key to getting the
most out of a revocable living trust is clear wording and enlisting the help of
an experienced estate attorney. The legal team at Aiello, Harris, Marth, Tunnero, Pastor & Shiffman, P.C. can
help you sort through your assets, determine those that would be best listed in
a trust (as opposed to a will) and help you draft a legally recognized and
easily executable document. Call (908) 561-5577 or contact us online today for
reputable help today.
June 27, 2016
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