Red Bank, NJ Trusts Attorney

Trusts Attorney in Monmouth County

At Margaret M. Mahon, Esq., LLC, we draft trusts for families of all sizes with various financial circumstances. We listen to your goals for protecting and distributing your property and thoroughly explain your options. Together, we can determine the best ways to accomplish your goals. We take every measure to protect your assets from excessive taxation as well as addressing your goals that are not tax-related. With careful planning, you can prevent the court from making important decisions for you and your family. An effective estate plan ensures that your wishes are carried out when you are gone.

What types of trusts are available?

There are several types of legal trust agreements. Each type has specific advantages, so it is important to confer with a trusts attorney to determine how to best meet your goals. Any of the following might be right for your situation:

  • Revocable trusts: With a revocable trust, you place your assets and property into the trust, rather than hold them in your name. This means that the trust owns the property, but you can serve as the trustee. Having a revocable trust protects your property in the event of your incapacitation by allowing a trustee to manage your assets, although a power of attorney will serve the same purpose. Because the trust is revocable, you can terminate it at any time so the property reverts back to you as the rightful owner. This type of trust does not protect your assets from being includable in your estate but allows you or another trustee to manage the trust assets.
  • Irrevocable living trusts: An irrevocable trust cannot be revoked or terminated by you. If you create an irrevocable living trust, once you sign over an asset, it belongs to the trust and is no longer owned by you. However, you can name yourself the trustee and maintain control of the trust. The advantage of an irrevocable trust is the tax protection it provides for your estate and, after the five years has passed, from consideration for Medicaid eligibility. A testamentary trust is an irrevocable trust.
  • Irrevocable life insurance trust (ILIT): An irrevocable life insurance trust is set up for the owner of the insurance policy. It separates the proceeds of the life insurance policy from your taxable estate. Upon your death, the insurance proceeds are available to your beneficiaries income tax-free through the trust. Otherwise, life insurance proceeds are included in your estate.
  • Special needs trust: This type of trust is created for a person receiving government benefits, such as Medicaid, resulting from a physical or mental handicap. The purpose of the trust is to allow outside sources to provide the beneficiary with supplemental funds without endangering the right to receive government benefits.

Creating a living trust in New Jersey

Anyone who owns assets or who has a family to protect needs estate planning. Properly drafted wills, living trusts, and testamentary trusts safeguard beneficiaries from taxation and decisions made by the government regarding how your property is distributed upon your death, as well as protecting assets from creditors and managing assets. In New Jersey, a revocable living trust is primarily used if you own property outside of the state or if you would like assistance in managing your assets.  An irrevocable trust is used if you would like to transfer money out of your estate for purposes of estate and/or Medicaid planning. We can help you design a living trust or testamentary trust that best suits your needs.

Meet with an experienced estate planning lawyer to discuss your trust options

At Margaret M. Mahon, Esq., LLC, we offer free 30-minute initial consultations. Our Red Bank office provides free parking and flexible hours for appointments by request. If necessary, we can travel to meet with you. Contact Margaret M. Mahon, Esq. LLC to learn how a trust can protect you and your legacy for your family.