New Jersey trust lawyer Christine Matus releases a new article (https://matuslaw.com/advantages-disadvantages-creating-revocable-trust/) explaining the advantages and disadvantages of revocable trusts. The lawyer says that revocable trusts are similar to irrevocable trusts but as the name suggests, they are revocable. Revocable trusts can be terminated or changed by the grantor of the trust as they see fit.
“Depending on your circumstances, there are both advantages and disadvantages to having the control afforded by a revocable trust. The biggest benefit to revocable trusts is their flexibility. Revocable trusts—also known as “living” trusts—can be terminated or updated at any time during your life. Revocable trusts are also more flexible than wills in many circumstances,” the New Jersey trust lawyer says.
The lawyer explains that probate applies mostly to wills and any property which was not properly planned for in a will or with some other vehicle. A revocable trust is similar to a will in that it can be revoked during the life of the grantor. However, upon death they become irrevocable.
Attorney Christine Matus says that the disadvantages of a revocable trust are usually subject to creditors or legal judgments against the owner. A creditor may be able to petition the court to reach into the revocable trust and satisfy any outstanding debts. A revocable trust may have little or no protection against such actions.
Furthermore, attorney Matus adds that it is important to seek the help of an experienced lawyer who will take the time to understand the unique circumstances of each client’s goals.
“While an irrevocable trust may serve to help you avoid or minimize estate taxes since the assets will not be counted towards your estate, assets held in a revocable trust can and will likely be includable in your estate since you maintain full control over the assets during your lifetime,” says the trust attorney.
Attorney Matus closes the article by explaining that one might still need a will even if they have a living trust. A will is needed especially if there are minor children or if they still have other properties they didn’t put in the trust.
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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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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.
Matus Law Group - Monmouth County
125 Half Mile Rd Red Bank, NJ 07701