Trusts have become a popular option for people looking to provide long-term income to others. These other people may be individuals, charitable organizations, relatives, or even pets. It is important to understand how trusts function and recognize the legal requirements for creating them. In addition, knowing the different kinds of trusts can help you choose the form that is right for you.
Our legal team could provide more information about the types of trusts in Moorestown. A dedicated trusts attorney can also work with you to assess your needs and select the form of trust that best serves your beneficiaries.
Types of Trusts and the Function that they Serve
As a general concept, a trust is a way to transfer property from one party to another. The trust maker places the property into a trust and nominates a trustee. That trustee then has a duty to distribute that property to the named beneficiaries at a designated time in the future. The identity of the beneficiaries and the time of the distribution are the main factors that differentiate the types of trusts.
Simple trusts can provide assets to another person. Special needs trusts can provide care for people with mental or physical disabilities. Trusts can also provide income to charitable organizations. Finally, people can even use trusts to ensure the welfare of pets or other property.
Different types of trusts all feature variable timing. For instance, some trusts can serve as substitutes for wills as long as the maker enacts the document before their death. This can ensure an efficient distribution of funds outside of probate. Other trusts can provide steady income to other people over time. For example, a trustee may have a duty to distribute funds to a beneficiary every month or year.
A knowledgeable Moorestown lawyer understands the different types of trusts and can help an individual determine the right one for their circumstances.
All Types of Trusts Must Meet the Relevant Legal Standards
Regardless of the exact reason for creating a trust, the author must be sure that the document conforms to the legal requirements. According to New Jersey Revised Statute § 3B:31-19, creating a trust may be as simple as giving property to another with the understanding that this person will serve as a trustee. However, it is best to memorialize this transfer on paper.
All trusts need to include a named trustee, specifically name beneficiaries, and confirm that the trust maker intends to create the document. An experienced Moorestown attorney could assist with drafting a trust that meets all these requirements, regardless of the type of trust the author decides to implement.
Understanding the Types of Trusts in Moorestown is an Essential Part of Estate Planning
Trusts can perform a variety of functions that can benefit a wide range of parties. At the most basic level, they can serve as a way to transfer assets between two people with limited court and tax interference. More complex examples can endow charities, help support a child’s education, or provide long-term care to people with special needs.
Regardless of the kind of trust that you choose to pursue, it is always necessary to meet the legal requirements for these documents. An attorney could provide more information about the types of trusts in Moorestown and help you implement the one that meets your goals. Call today to get started.