New Jersey Living Trust with Provisions for Disability

• Category: Trusts - Living Trusts
• State: Multi-State
• Control #: US-0651BG
• Format: Word; Rich Text

Description

A living trust is a trust established during a person's lifetime in which a person's assets and property are placed within the trust, usually for the purpose of estate planning. The trust then owns and manages the property held by the trust through a trustee for the benefit of named beneficiary, usually the creator of the trust (settlor). The settlor, trustee and beneficiary may all be the same person. In this way, a person may set up a trust with his or her own assets and maintain complete control and management of the assets by acting as his or her own trustee. Upon the death of the person who created the trust, the property of the trust does not go through probate proceedings, but rather passes according to provisions of the trust as set up by the creator of the trust.

New Jersey Living Trust with Provisions for Disability provides individuals with the ability to plan for their financial future and provide for their loved ones in case of incapacitation due to disability. This legal document allows individuals, often referred to as "granters" or "settlers," to place their assets and property into a trust to be managed for their benefit during their lifetime and distributed to designated beneficiaries upon their passing. One type of Living Trust with Provisions for Disability in New Jersey is the Revocable Living Trust. This trust allows granters to maintain control over their assets during their lifetime and modify or revoke the trust if they wish. It provides flexibility and ensures that the granter's wishes are respected even if they become mentally or physically incapacitated. Another type of Living Trust with Provisions for Disability is the Irrevocable Living Trust. In this case, the granter permanently transfers ownership of their assets to the trust, relinquishing control. While this type of trust cannot be modified or revoked easily, it may provide certain tax advantages or protection against creditors. The main purpose of incorporating provisions for disability in a New Jersey Living Trust is to ensure that the granter's affairs can be managed effectively if they become incapacitated. These provisions typically include the appointment of a successor trustee or a successor agent under a durable power of attorney. The successor trustee or agent will step in and handle the granter's financial affairs, manage their assets, and make critical decisions on their behalf, such as healthcare choices, until the granter recovers or passes away. By establishing a Living Trust with Provisions for Disability, individuals can avoid the need for a court-appointed guardian or conservator, which can be costly, time-consuming, and invasive. The trust can offer privacy, as it does not become a matter of public record like a guardianship or conservatorship does. To create a New Jersey Living Trust with Provisions for Disability, it is crucial to consult with an experienced estate planning attorney who understands state laws and can help customize the trust to meet individual needs. This professional can guide individuals through the process, ensuring that the trust is properly created, funded, and that all necessary provisions are included. They can also address any specific concerns related to disability, asset protection, taxes, and succession planning. Overall, a New Jersey Living Trust with Provisions for Disability serves as a powerful tool in safeguarding an individual's assets, providing for their benefit during incapacity, and ensuring a seamless transfer of assets to loved ones upon their passing.