Best Trusts Lawyers in New Jersey

About Trusts Law in New Jersey, United States

Trusts are legal arrangements that allow an individual, known as the grantor or settlor, to place assets under the management of a trustee for the benefit of one or more beneficiaries. In New Jersey, trusts serve a variety of purposes, including estate planning, asset protection, tax minimization, and providing for loved ones. Trusts can be established during the grantor's lifetime (living trusts) or after death (testamentary trusts). New Jersey's trust laws are governed primarily by the New Jersey Uniform Trust Code, which outlines the creation, management, and termination of trusts within the state.

Why You May Need a Lawyer

Trusts can be complex legal documents with significant financial and legal implications. Here are common situations where you may benefit from consulting a lawyer with experience in trusts:

• Planning for the distribution of your estate to minimize probate or estate taxes
• Setting up a trust for minor children or individuals with special needs
• Protecting your assets from creditors or lawsuits
• Ensuring your wishes are followed if you become incapacitated
• Administering a trust as a trustee or beneficiary and needing guidance
• Handling disputes or litigation related to trust terms or administration
• Dealing with blended families or complicated family situations
• Reviewing or updating an existing trust to comply with current laws

Local Laws Overview

New Jersey follows the New Jersey Uniform Trust Code, which provides a modern structure for the establishment, administration, and dissolution of trusts. Some key aspects of trust law in New Jersey include:

• Types of Trusts: New Jersey recognizes a variety of trusts, including revocable trusts (allowing changes while alive), irrevocable trusts (generally cannot be changed after creation), special needs trusts, and charitable trusts.
• Trustee Duties: Trustees in New Jersey are held to high fiduciary standards. A trustee must act in the best interest of the beneficiaries and follow the terms of the trust.
• Trust Interpretation: Courts will interpret trusts according to the grantor’s intent and the clear language of the document.
• State Estate Tax: As of 2018, New Jersey no longer imposes a state estate tax, but a separate inheritance tax may still apply in some situations.
• Probate Avoidance: Revocable living trusts are commonly used in New Jersey to bypass the probate process for assets titled in the trust.

Frequently Asked Questions

What is the difference between a revocable and an irrevocable trust in New Jersey?

A revocable trust can be modified or revoked by the grantor at any time during their life. An irrevocable trust generally cannot be changed or revoked once it is created, offering stronger asset protection and potential tax benefits.

Do I need a trust if I already have a will?

A will directs the distribution of your assets after you die, usually through probate. A trust can help avoid probate, manage assets during incapacity, and may provide more privacy and control. Many people use both in their estate plan.

Can a trust help me avoid probate in New Jersey?

Yes, assets placed in a properly established trust are not subject to probate, which can save time and reduce court involvement after your death.

Who can serve as a trustee in New Jersey?

Any competent adult or a corporate entity, such as a bank or trust company, can serve as a trustee. The grantor may also serve as trustee for a revocable living trust.

Are trusts public record in New Jersey?

Trusts are generally private documents and do not become part of the public record, unlike wills that go through probate.

What happens if a trustee breaches their duties?

If a trustee violates their fiduciary duties, beneficiaries or the court can seek removal of the trustee, financial restitution, or other remedies to address any harm caused.

Is a New Jersey trust valid in other states?

Trusts created in New Jersey are usually recognized in other states, but moving or holding out-of-state assets can introduce complications. It is wise to review your trust if you move or acquire property elsewhere.

Can I change my trust after it is created?

Revocable trusts can generally be altered or revoked by the grantor. Irrevocable trusts typically cannot be changed, except in rare cases or through a court process known as trust modification.

How are trusts taxed in New Jersey?

Trusts may owe federal and state income taxes. New Jersey imposes a trust income tax on trusts with income sourced in the state or administered by a New Jersey trustee. It is important to consult with a tax professional.

How do I fund my trust?

You must formally transfer legal title of your assets, such as real estate, brokerage accounts, and bank accounts, into the name of the trust. A lawyer can guide you through this process to help ensure nothing is missed.

Additional Resources

If you need more information or assistance concerning trusts in New Jersey, consider reaching out to these resources:

• New Jersey State Bar Association - Trusts and Estates Section
• New Jersey Judiciary - Information on Probate and Trust Administration
• Office of the Public Guardian for Elderly Adults
• New Jersey Division of Taxation - Guidelines on Inheritance and Estate Tax
• Local legal aid organizations offering estate planning support

Next Steps

If you are considering creating a trust, acting as a trustee, or are involved in a trust dispute in New Jersey, it is important to consult with a qualified trusts and estates attorney. An experienced lawyer can help you:

• Evaluate your goals and recommend the right type of trust
• Draft trust documents to ensure they are legally valid and enforceable
• Guide you through trust administration or modification
• Represent you in court if disputes arise

Start by gathering your key personal and financial documents, making a list of your goals, and scheduling a consultation with a New Jersey attorney who specializes in trusts and estates. You can find attorneys through the New Jersey State Bar Association or by referrals from trusted professionals. Acting now can help you protect your assets and provide for your loved ones according to your wishes.