(732) 361-2533 Transferring property from one party to another can be complicated and often results in harsh taxation for the receiver. In addition, waiting until after a person’s death to create a trust may keep property under the control of the state’s probate courts.
One reason to create a trust is to simplify the means of transferring property. In addition, trust creators can enjoy the benefits of lower tax burdens on a property, including access to government programs. A Freehold trusts lawyer could explain how trusts function, evaluate your needs, and draft documents that can help you ensure the future of your assets. Reach out to a skilled estate planning attorney to learn more.
What is a Trust?
Trusts are helpful when a property owner surrenders ownership of their assets to a trustee. A trustee takes temporary control of these items with the understanding that they must transfer ownership to a beneficiary in the future. This transfer can happen upon the trust creator’s death or through payments over time.
Creating a trust is typically simple. According to New Jersey Revised Statute § 3B:31-19, a party can create a trust by intending to do so. However, it is necessary to nominate a trustee to take control of the assets and a beneficiary to assume ownership eventually. Additionally, a trustee cannot also be the trust’s sole beneficiary. A skilled attorney in Freehold could help an individual better understand the concept of trusts and the process for creating one.
The Benefits of Trusts
Transferring assets via a trust can benefit a trust maker and those who will receive the property. Once an asset goes into a trust, an owner no longer owns the property, meaning they do not have to pay taxes. In addition, placing items into a trust lowers the property owner’s overall asset level. Reducing an individual’s assets could help them become eligible for government programs like Medicaid that assist with paying the costs of nursing home care.
Beneficiaries of trusts may also enjoy similar benefits. Cash assets that a trustee receives are free from taxation. In contrast, acquiring a property as a gift or through probate could result in estate or inheritance taxes. Similarly, property that moves through a trust does not need to go through the probate process, resulting in a quicker receipt of an asset, even if a trust dictates that the transfer takes place after the trust maker’s death. Consulting with a trusts lawyer in Freehold could help people determine if moving property through this arrangement is the best option for them.
Reach Out to a Freehold Trusts Attorney Today
Making the right choice when moving property from one party to another is essential for an effective transfer. For many, it is beneficial to create a trust to move property after one’s death and for the long-term security of another person. In addition, a trust offers immediate tax benefits.
If you think that creating a trust could benefit you, reach out to a Freehold trusts lawyer. A legal team member could explain the trusts process and ensure that documents clearly explain your intentions. In addition, an attorney could take the lead in assessing your needs and draft documents that offer the most benefits to your beneficiaries. Call a lawyer today to make your appointment and learn more about the trusts process.
