New Jersey living trust attorney Christine Matus (https://matuslaw.com/advantages-disadvantages-creating-living-trust/) of The Matus Law Group has published an insightful article titled "Advantages and Disadvantages of Creating a Living Trust." In this comprehensive piece, Matus explores the benefits and drawbacks of living trusts, aiming to help individuals make informed decisions about their estate planning options.
In the article, New Jersey living trust attorney Christine Matus explains that a living trust, unlike a testamentary trust, is established during a person’s lifetime and can be either revocable or irrevocable. “A revocable living trust offers flexibility because you have the power to change it or adjust it as you see fit,” Matus notes. “You can be both the trustee and the beneficiary, which allows you to maintain control over the assets while you are alive.”
New Jersey living trust attorney Christine Matus highlights the key advantages of a living trust, including the ability to avoid probate court and address privacy concerns. “The most common reason individuals develop a living trust is to use it as a will substitute, thereby avoiding the probate process,” Matus states. “This means that upon your death, the assets can be distributed much faster and easier according to your instructions, without the need for probate court involvement.”
Additionally, Matus emphasizes that using a living trust can help maintain privacy. “Probating a will is a public proceeding, which can expose your asset distribution to the public eye,” she explains. “A living trust can prevent this, ensuring that your financial matters remain private.”
However, the article also discusses the disadvantages associated with living trusts. Matus points out that many misunderstand the purpose of these trusts, erroneously believing they offer asset protection. “Most living trusts provide no asset protection,” she clarifies. “If you establish a revocable living trust where you are not the beneficiary, it might offer some protection, but this is not the case for most living trusts.”
The article also explores the specific drawbacks of revocable living trusts. Matus highlights that assets in a revocable trust are vulnerable to creditors and legal judgments because the grantor retains control over the property. “Creditors can petition the court to access the trust to settle outstanding debts, leaving you with limited protection,” Matus explains.
Furthermore, placing a house in a trust comes with its own set of disadvantages. Matus notes that setting up a trust is often more costly than creating a will due to the intricate nature of trusts, which typically require legal assistance. “Trusts also demand ongoing management and can involve a burdensome amount of documentation, such as creating and signing a new deed to transfer the property’s title to the trust,” she adds.
For those considering including a living trust in their estate plan, understanding these potential advantages and disadvantages is crucial. The Matus Law Group can offer personalized guidance to help ensure that estate plans align with state laws, protect assets, and minimize tax burdens.
About The Matus Law Group:
The Matus Law Group, based in New Jersey, can provide a range of legal services focused on estate planning and real estate law. Led by Christine Matus, the firm is committed to offering personalized and strategic legal solutions to help clients secure their financial future and protect their assets. The team at The Matus Law Group strives to deliver exceptional service and support tailored to meet the unique needs of each client.
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