New Jersey living trust attorney Christine L. Matus releases a new article (https://matuslaw.com/advantages-disadvantages-creating-living-trust/) explaining the pros and cons of creating a living trust. The lawyer mentions that a revocable living trust is similar to a testamentary trust but it is established while the owner is still alive. The owner also has the power to change or adjust a living trust as they see fit.
“In this type of trust, you can be both the trustee and the beneficiary if you so desire. You can also set up a non-revocable living trust, which means that you cannot alter or destroy it after it has been established. This financial tool has both advantages and disadvantages, and whether you should use it will depend on your goals for trust,” says the New Jersey living trust attorney.
The lawyer explains that living trusts are not often used today as it is in the past. However, there are still distinct advantages to establishing this type of trust. One advantage is that it can help avoid the probate court. A living trust can be used as a substitute for a Will. Upon the owner’s death, the trust will be converted to a testamentary trust.
Attorney Christine Matus adds that a living trust can also help address privacy concerns. This means that if a person uses a living trust as a Will substitute, they can avoid potential privacy concerns regarding probating a will. Since probating a will is a public proceeding, many people would like to avoid going through this process.
In the article, attorney Matus also mentions the disadvantages of a living trust. These disadvantages include limitations on transfers, no tax avoidance, and increased contesting periods. Once an asset is moved to a trust, it is important that a person follows the trust documents instructions on the assignment.
According to the estate attorney, “Some of the disadvantages of living trust really stem from misunderstanding the purpose and use of this estate planning instrument. For example, some people assume that any and all trusts are useful asset protection tools. This is unfortunately not the case; most living trusts will offer no asset protection.”
Lastly, attorney Christine Matus encourages families to seek the help of an experienced estate lawyer. Having a skilled estate lawyer may be able to help protect the estate and wealth the client has worked so hard for. It may also be able to protect the future of the client’s children.
About The Matus Law Group
The Matus Law Group has a team of estate attorneys who are committed to helping families and individuals in real estate transactions in New Jersey and New York. Through a team approach, they work hard to help their clients with their estate planning needs. Call The Matus Law Group today at (732) 785-4453.
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