A trust is designed to give assets to another party while protecting those assets from certain taxes and sometimes preventing use except for designated purposes. The settlor, or creator, of the trust would finance the trust, and appoints an administrator called a trustee to manage the funds on behalf of the beneficiary.
Hiring a New Jersey trust administration lawyer is crucial during the trust creation process. An attorney could advise you on which type of trust may work best for your situation, and assist in the creation of the fund.
New Jersey Uniform Trust Code
The New Jersey legislature approved the New Jersey Uniform Trust Code (NJUTC) to give greater standardization amongst trust laws between different regions of the county. The effect of having standardized and widely adopted trust laws are that it is easier to establish a trust in one state, while still using it in another or being able to have all the different parties of a trust do their part from across state lines.
The NJUTC includes uniform laws on valid trust formation, modification, and termination of trust instruments. Additionally, the code establishes the duties of trustees and how this person might be removed or replaced. There are also stipulations about the rights creditors have to assets in trust if someone defaults. A New Jersey trust administration lawyer could answer questions regarding the implementation and application of the NJUTC in Manalapan.
What Does a Trust Administrator Do?
Achieving the desires of the settlor means appropriately administering the trust both during the settlor’s lifetime and after death. This task is often difficult when family members are both trustee’s and beneficiaries, still grieving over the passing of the settlor.
An experienced New Jersey trust administrator will advise both trustees and beneficiaries on their rights and obligations. This counsel could ensure assets are seamlessly transferred to the intended beneficiaries without the delay or expense of probate.
Trusts instruments come in many different forms and are used for a variety of long-term planning purposes. Below are some of the more common trust instruments utilized in society today.
- Charitable Trust
- Generation-Skipping Trust
- Grantor Retained Interest Trust (GRIT)
- Grantor Retained Annuity Trust (GRAT)
- Grantor Retained Unit Trust (GRUT)
- Irrevocable Trust
- Irrevocable Life Insurance Trust (ILIT)
- Qualified Personal Residence Trust (QPRT)
- Qualified Terminable Interest Property Trust (QTIP)
- Revocable Living Trust
- Special Needs Trust
Trust Administration Costs In New Jersey
The law does not dictate trust administration fees. Rather, they are determined by the amount of time needed to administer the trust. When it comes to hiring the right trust administration lawyer in New Jersey, choosing the cheapest firm may not be the best choice. Understanding the complexity of trust administration is critical and should always be the foremost determining factor when choosing the right lawyer. Choosing incorrectly could lead to issues with trust disbursement or tax implications.
Choosing the Best Course of Action
Hiring a New Jersey trust administration lawyer is essential when trying to place any sort of asset into any kind of trust. Contact us today to learn more about our practice and how we may be able to assist you. An experienced attorney could help you understand your options and make the best decision for the protection of your assets.