This form is an agreement between the trustor and the trustee to create an irrevocable living trust.The purpose of the creation of the trust is to provide for the convenient administration of certain assets without the necessity of court supervision in the event of the trustor incapacity or death. Other provisions within the document include: trust assets, the abstract of the trust, and suggested trust registration.
What is an Irrevocable living trust?
A living trust is a legal document that individuals (grantors or trustors) prepare to create a fund of assets they want to hold during their lifetime and bequeath to the named people (beneficiaries) after they pass away. They assign a third party (trustee) to manage these assets and supervise their transfer at a predetermined time. A living trust are an essential tool for estate or property planning as an alternative to wills; allowing owners to distribute their assets (estate, stocks, bank accounts, etc.) as they wish and bypass state court probate procedures if they die intestate.
Trusts can be either revocable or irrevocable. An irrevocable living trust is the stricter form of property transfer as it excludes the grantor’s opportunity to modify anything in the agreement or to terminate it once set up. Though both types have similar terms, you should be aware of some important differences.
Revocable vs. irrevocable trust
As the name implies, a revocable trust allows the grantor to modify its terms (for example, transfer some assets out or add some extra ones, change the beneficiaries and trustees) or cancel it at any moment. Such terms are wholly different from those that apply to an irrevocable living trust, which must remain unchanged and without a termination option from the moment you set it up. However, in some states, the grantor can change the document with the beneficiary’s permission or by court order.
Both of these property grants have their benefits:
Types of irrevocable trusts
There are several irrevocable trust examples:
- Irrevocable life insurance trusts;
- Charitable trusts;
- Lifetime gifting trusts (including the grantor-retained annuity, spousal lifetime access, and qualified personal residence trusts);
- Testament trust created after the grantor’s death.
- Personal details of the parties involved (grantor, beneficiary, trustee, and successor trustee);
- Description of the transferred property items.
Living trust forms
To set up a living trust, the grantor must ensure the accuracy of the necessary paperwork. US Legal Forms offers only verified printable and electronically editable legal templates specific to your state regulations. Download our Trust Irrevocable Form and provide the following information:
The agreement template we offer is a universal multi-state do-it-yourself form. If you want to add additional terms to the contract or amend any existing ones, though, please consult a legal advisor to do this task correctly.
New Jersey Living Trust — Irrevocable: A Detailed Description A Living Trust, also known as an Inter Vivos Trust, is a legal arrangement that allows individuals to protect and manage their assets during their lifetime and distribute those assets after their death. In the state of New Jersey, one type of living trust is the Irrevocable Living Trust. This article aims to provide a detailed description of what New Jersey Living Trust — Irrevocable is, highlighting its features, benefits, and different types available. An Irrevocable Living Trust is a trust that, once created, cannot be modified or revoked by the granter (the person who establishes the trust). It is considered a separate legal entity and is effective during the granter's lifetime and after their death. The primary purpose of an irrevocable living trust is to protect assets from estate taxes, creditors, and probate court proceedings. Key Features and Benefits: 1. Asset Protection: One of the major advantages of an irrevocable living trust is its strong asset protection. By transferring ownership of assets into the trust, they become shielded from potential creditors, lawsuits, and other financial claims. This protection ensures that assets are preserved and can be passed on to beneficiaries as intended. 2. Estate Tax Reduction: Through proper estate planning, an irrevocable living trust can help minimize or eliminate estate taxes that would otherwise be imposed on the estate. Assets held within the trust are not considered part of the granter's taxable estate, potentially resulting in substantial tax savings for beneficiaries. 3. Probate Avoidance: Probate is often a time-consuming and costly process that requires court involvement. Establishing an irrevocable living trust in New Jersey allows assets to bypass probate, ensuring a more efficient and private distribution of assets to beneficiaries. This enables faster access to funds and minimizes the overall administrative burden. 4. Medicaid Planning: Another advantage of an irrevocable living trust is its potential use for Medicaid planning. By transferring assets into the trust, individuals can effectively reduce their assets' countable value, which may help meet Medicaid eligibility requirements for long-term care expenses. Types of Irrevocable Living Trusts in New Jersey: 1. Medicaid Asset Protection Trust (MAP): Also referred to as an Irrevocable Income-Only Trust, this type of trust is specifically designed to protect assets from being counted towards Medicaid eligibility while allowing the granter to receive income generated by those assets. 2. Qualified Personnel Residence Trust (PRT): This trust focuses on the principal residence or a secondary home. By transferring ownership of the residence to the trust, the granter retains the right to live in the home for a specified period, after which the property passes on to the beneficiaries without being subject to estate taxes. 3. Charitable Remainder Trust (CRT): This trust allows individuals to support their favorite charitable causes while receiving tax benefits. Assets transferred to the trust generate income for the granter or other beneficiaries during their lifetime, and after their death, the remaining assets are distributed to designated charities. In conclusion, an Irrevocable Living Trust in New Jersey provides individuals with a powerful estate planning tool for protecting assets, minimizing taxes, avoiding probate, and planning for long-term care. Understanding the different types of irrevocable living trusts available can help individuals and families determine which trust best suits their unique needs and goals. Consulting with an experienced estate planning attorney is crucial for proper guidance and the establishment of a living trust that aligns with legal requirements and objectives.
