The protection of property and assets is becoming more and more important to our population as we move forward. In today’s world, valid documentation of your wishes is essential if you plan to set aside property for the benefit of another person upon your passing. Most of us are familiar with a last will and testament, which outlines your general wishes that should be carried out after your death. However, many people are not aware of what a “living trust” is and the purpose this type of estate planning tool serves.
What is a Living Trust?
A living trust is a legal document, just like a power of attorney or last will and testament, that establishes how property is to be distributed upon your death. At the time this document is created, the person creating the trust is called the trustor, the person who holds the trust is called the trustee, and the person or party who is to benefit from the trust is called the beneficiary. The trustor, trustee, and beneficiary are typically the same person while the creator of the trust is still alive. It is at the time of this person’s death that the purpose of the trust is served, which is the transfer of property or assets to another (such as a car or home).
A living trust can protect your property while you are alive and provides you with the option to revoke or change the terms of the trust at any time. If you no longer decide you want to leave property for the benefit of another at the time of your passing, you can essentially cancel the trust, or change the trust to insert a different beneficiary. A living trust may not be right for everyone’s situation, so speaking with an attorney is a good idea if you have questions about planning for your future.
Contact Giro Elder Law Today to Speak with Our New Jersey Elder Law Attorneys
A living trust is just one estate planning tool that can protect your assets and your wishes for the benefit of another. However, mistakes can happen when attempting to set up a trust without a full understanding of how the trust works and whether or not it is in accordance with New Jersey law. As such, you should speak with an attorney right away to discuss your options. To learn more about living trusts, contact Giro Elder Law today by calling (201) 690-1642