In a recent publication, New Jersey trust attorney Christine Matus (https://matuslaw.com/6-different-types-of-trusts-to-consider-using/) breaks down six distinct types of trusts that individuals should consider when planning for the future. The article, featured on The Matus Law Group’s website, highlights how these legal tools can provide privacy, streamline asset distribution, and help avoid probate court.
Christine Matus, a seasoned New Jersey trust attorney, emphasizes that choosing the right type of trust depends on the individual's estate goals and circumstances. Each trust offers distinct advantages for protecting assets and providing for loved ones. “Each type of Trust serves a distinct purpose, and choosing the right one can significantly impact the future of your estate and the well-being of your beneficiaries,” she explains.
By walking readers through the key features of six common trusts, Christine Matus ensures that those seeking estate planning options can better understand what structure fits their needs. For those navigating legacy planning, consulting a New Jersey trust attorney can make a meaningful difference in how their estate is managed and preserved for future generations.
The first trust introduced is the Revocable Living Trust, which offers flexibility and control during the grantor’s lifetime. Christine Matus notes that this trust is ideal for those who want to maintain authority over their assets while avoiding probate. Assets remain part of the grantor’s estate for tax and creditor purposes, but are distributed efficiently upon death.
The Irrevocable Trust comes next, offering significant benefits such as estate tax reduction and asset protection. Once assets are placed in this trust, the grantor gives up control, making it a more permanent option. This type of trust appeals to individuals seeking long-term financial protection for their estate and beneficiaries.
A Charitable Trust is highlighted for individuals looking to support causes while also gaining tax advantages. Christine Matus describes two variations: the Charitable Remainder Trust (CRT), which first provides income to non-charitable beneficiaries, and the Charitable Lead Trust (CLT), which does the reverse. These trusts are structured to support philanthropic goals while preserving wealth.
The Special Needs Trust (SNT) is essential for families with disabled beneficiaries. Rather than disbursing assets directly to the individual, which could jeopardize eligibility for public benefits, the trust manages and allocates funds in a legally compliant way that supports the beneficiary’s quality of life.
For families with members who may struggle with financial responsibility, the Spendthrift Trust offers protection. This trust restricts a beneficiary’s direct access to funds, placing spending decisions in the hands of a trustee. Christine Matus notes that this can be beneficial for minors or individuals with a history of financial mismanagement.
The sixth type covered is the Qualified Domestic Trust (QDOT), used in estate plans involving non-citizen spouses. This structure allows the surviving spouse to benefit from marital deductions that would otherwise be unavailable by deferring estate taxes until principal distributions are made. The QDOT must meet specific IRS rules, including having a U.S. trustee, making it essential for international families to seek proper legal counsel.
Christine Matus emphasizes that multiple types of trusts can be layered together in one estate plan for increased flexibility. For instance, combining revocable and irrevocable trusts can balance the need for control with asset protection. Charitable or special needs trusts can be integrated into broader estate plans to achieve multiple goals simultaneously.
While trusts offer a private and efficient method of managing assets, the article also advises readers not to overlook the importance of a will. A pour-over will can work alongside a trust to capture any assets not formally transferred to the trust, ensuring that the entire estate is addressed. Additionally, wills allow guardianship designations for minor children and the allocation of personal items.
Christine Matus reinforces the value of using both tools together: trusts and wills. Trusts can eliminate probate and streamline the distribution of assets, while wills provide coverage for unexpected gaps or changes in circumstances. This comprehensive approach helps ensure that all aspects of the estate are handled according to the grantor’s wishes.
Trusts are legal instruments that serve various functions, from protecting family members and assets to supporting charitable causes and reducing tax liability. Christine Matus encourages individuals to consider their unique circumstances when choosing among these options. Whether avoiding probate, protecting a loved one with special needs, or managing assets across borders, the right trust can offer lasting benefits.
Choosing the appropriate trust structure is an important step in building a secure estate plan. Christine Matus and The Matus Law Group offer guidance on how to align these legal tools with long-term goals. Planning now helps avoid disputes and delays later, while also preserving wealth for future generations.
For those looking to better manage their estate and secure a thoughtful future for their loved ones, the team at The Matus Law Group is available to help identify which of the six trusts best fits the needs of each family or individual.
About The Matus Law Group:
The Matus Law Group serves clients across New Jersey with a focus on estate planning, trusts, and related legal matters. Led by Christine Matus, the firm is committed to guiding individuals and families through the estate planning process to achieve lasting peace of mind and legal clarity.
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