Transferring property between two people often raises difficult legal questions. In many situations, this transfer can involve extensive taxation. In others, the probate court may become involved, as it will when property moves through a will.
Fortunately, more effective and efficient methods are available that could still fulfill your objectives, the most common example being a trust. A trust is a way to move property between people that carries tax benefits and exists outside of the probate system.
Placing property into a trust with the assistance of legal counsel could bolster your eligibility for certain government programs and provide for the care and maintenance of others. A Mount Laurel trusts lawyer could help you take the lead in drafting these documents in a way that best serves your unique interests.
The Legal Steps Involved in Creating a Trust
A trust is simply a way to transfer property between two parties. However, unlike the transferring of property as a gift, a trust involves an intermediary called the trustee. The role of the trustee is to hold onto and maintain the property until the time comes to transfer it to the beneficiary.
A person in Mount Laurel may create a trust with the help of an attorney by transferring property to the control of a trustee with instructions to move it to a beneficiary at some point in the future. More specifically, New Jersey Revised Statute § 3B:31-19 says that a person must intend to create a trust and have the capacity to do so, and that the trustee cannot be the sole beneficiary of the trust.
Why Might a Person Form a Trust?
Forming a trust is always an option when an individual wishes to transfer property or assets to another. In many situations, this is the preferred method. Trusts can serve as a viable alternative to a will, and trust that dictates the transferral of property upon the maker’s death has essentially the same legal effect. A trust has the added benefit of allowing for the transfer outside of the probate process.
Creating a trust can also have more immediate personal benefits. Once assets move into a trust, they are no longer the property of the trust maker. This means that the maker does not need to pay taxes on that property, and it could increase their eligibility for government programs like Medicaid.
Finally, a trust can serve as an effective way to care for the wellbeing of vulnerable parties. Trusts that include a scheduled release of funds for children or people with disabling conditions can support their long-term welfare. A Mount Laurel trusts lawyer could provide more information about the utility of the different kinds of trusts.
Reach Out to a Mount Laurel Trusts Attorney Today
Modern estate planning requires people to evaluate every option at their disposal. While it is possible to achieve one’s goals using traditional methods such as wills, more flexible options like trusts can better serve your interests and those of your heirs. Let a Mount Lauren trusts lawyer provide you with more information about these powerful tools. They can work to understand your needs and suggest options that best fit your goals. Call today to speak with a member of our team and learn more.