Trusts are an effective and legally binding way to transfer property from one individual to another. There are different kinds, and every trust serves a unique purpose. The language that a trust maker uses when authoring the document defines the legal processes required to transfer property.
It is important for anyone interested in these arrangements to understand the types of trusts in Mount Laurel and the impact that state law will have on these documents. Making vital choices concerning revocability and whether a trust serves a charitable purpose can impact the legal effect of an arrangement in the future. Thankfully, a knowledgeable trusts attorney could help an interested person understand their many options.
The Various Types of Trusts Serve Different Needs
People create trusts for many reasons. For example, many parents set up trust funds to ensure that their children have money to pursue an education. Other trusts can provide income for people with intellectual or physical limitations. When someone creates a trust for this reason, they can implement safeguards to ensure that nobody tampers with the protected funds.
Trusts can also serve as powerful alternatives to wills. By placing property into a trust with instructions for distribution upon the author’s death, the arrangement keeps assets safe for a long period.
There are distinct benefits to utilizing trusts as an alternative to a will. Property that sits in a trust does not need to flow through probate. This means that it is immune to claims from creditors and usually transfers to beneficiaries immediately upon the author’s death. Additionally, placing property in trust can bring significant tax benefits or help people become eligible for certain government benefits.
To summarize, common varieties of trust include but are not limited to:
- Funds for education
- Charitable donations
- Special needs support
- End of life trusts
- Support for pets
- The transfer of physical property
An experienced attorney in Mount Laurel could help a family categorize their assets and determine the type of trust that is best for their wishes or property.
Things to Know about All Trusts
One of the most crucial aspects of these versatile arrangements is that, when creating a trust, an individual must name a trustee to oversee the maintenance and distribution of the property. This trustee cannot be the sole beneficiary of the arrangement. When it adheres to these basic regulations, a trust can take on almost any form imaginable.
Meanwhile, one of the major concerns that a trust maker must address when drafting their documents is whether the trust will be revocable. This simply refers to whether the trust maker will have the legal authority to act on their own to terminate the agreement in the future. Revocable trusts offer this freedom, while irrevocable trusts require the author to obtain the consent of beneficiaries and trustees when making changes.
A resourceful lawyer in Mount Laurel could help a family further understand the intricacies of all types of trust arrangements, to keep the transfer of property smooth.
An Attorney Could Help You Choose the Trust that is Right for You
All trusts take on the same basic form. These arrangements involve a party transferring property to a beneficiary and nominating a trustee to protect the assets until the time for distribution arrives. However, parties can use trusts to fulfill a variety of purposes, including providing financial support, education funds, charitable donations, or an impactful alternative to a will.
A well-practiced lawyer could further explain the types of trusts in Mount Laurel and help you create one that is perfect for your unique life. Reach out to the office today to get started on your personalized plan.