New Jersey living trust lawyer Christine Matus releases a new article (https://matuslaw.com/advantages-disadvantages-creating-testamentary-trust/) explaining the advantages and disadvantages of creating a testamentary trust. The lawyer mentions that trusts can be created either during or after an individual’s lifetime. Trusts that are created after the person’s lifetime are called testamentary trusts because they are established in the person’s “last will and testament.”
According to the New Jersey living trust lawyer, “Like living trusts, testamentary trusts are overseen by a trustee and have specified beneficiaries. The trustee is bound by the terms of the trust and will distribute funds or property according to your specific instructions. This type of trust is often used by someone who is expecting a large life insurance payment or for those who have minor or disabled children.”
The lawyer explains that one advantage of a Testamentary trust is that an individual has control over the funding. For example, if the individual has a child with poor spending habits, they can be able to use the trust as a way to ensure that the child will not squander their inheritance.
Attorney Christin Matus adds that a testamentary trust can also allow the person to avoid estate taxes. It can also have certain tax benefits for the beneficiaries. Aside from the aforementioned, testamentary trusts can also be incorporated into a will while the person is creating it or as a later addition. One of the most beneficial aspects of a Testamentary trust is that it can be completely tailored to your needs.
According to the lawyer, “The disadvantages of a testamentary trust are few and far between, but there are a few cons that you should consider before creating a testamentary trust. Although you will not pay the majority of the costs upfront, there are costs that you will need to consider for the sake of the beneficiaries and the trustee. Also, in a testamentary trust, the designated trustee has the option to turn down the role. That can mean that the probate court will name someone else to be the trustee.”
Lastly, the lawyer emphasizes the importance of having a skilled estate planning lawyer. Having an experienced attorney may be able to help the family understand their rights and ensure that the assets are distributed according to the owner’s wishes.
About the Matus Law Group
The Matus Law Group has a team of estate planning 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.
SOURCE: Press Advantage [Link]
The Matus Law Group is an experienced team of attorneys who can help you and your family plan for life, protect and care for loved ones with special needs, cope effectively with disability and death, and preserve inheritances for future generations.