Trust Lawyer Bergen County NJ

Table of Contents

• Understanding Trusts
• Steps of Building a Trust
• Common Mistakes to Avoid When Creating a Trust
• Bergen County Trust Infographic
• Bergen County Trust FAQs
• Kaplan Law Practice, LLC, Bergen County Trust Lawyer
• Contact Our Bergen County Trust Lawyer Today

Understanding Trusts

If you want to create a trust, one of the first steps will be deciding if you want a single or a joint trust. If you are married, you probably want a joint trust so that you and your spouse can put your assets and property into one trust. However, it is possible to still have a separate trust if you are married. Next, you will want to:

• Gather property information. A trust is only as good as the information in it. If you do not take the time to know what kind of property you have, you will not be protected well. Your Bergen County, New Jersey trust lawyer will be able to help you gather all the information necessary for your property.

• Determine a trustee. When you create your trust, you will need to establish a trustee. You can also name someone as a successor trustee. Many people choose to name themselves as a trustee and have one or more people identified as successor trustees when they pass away. You want to make sure this is someone you can fully rely on to take care of managing your estate.
• Transfer property. Once you have created your trust, you will need to transfer your property into your trust. This can become complicated and it will be to your benefit to work with our lawyer during this time so that you do not make any errors or leave anything out.

Ensuring Your Final Wishes Are Honored

When you work with our trust lawyer in Bergen County, NJ, your final wishes are more secure than if you simply write a will. A trust protects your assets, and your wishes, against legal action. Therefore, those who are unhappy with how you wish to distribute your assets do not have legal standing to dispute your trust and distribution.

However, a trust is not totally invulnerable to legal disputes. For example, if you were mentally incapacitated when you set up the trust and didn’t understand all the aspects of your trust, then an heir may have legal standing. In addition, if you were under duress or undue influence, your trust can be contested. However, this process is still more difficult than if you had a simple will.

One of the most significant benefits of a trust is that any family disputes that may result from the division of your assets are avoided. Your attorney can help you tailor your trust to your specific situation or to your heirs’ situations. Each beneficiary will receive a specified amount or assets. You can also designate special items for the individuals who will appreciate them the most.

Avoiding Probate

The probate process can be long and complicated, and every day your heirs could lose money in legal fees. If you only have a will, a judge must determine whether it is valid. In addition, if you have assets not listed in your will, the probate process helps determine who they go to. This process can last up to two years.

Law firms that specialize in trusts, such as the Kaplan Law Practice, can help you create a trust that doesn’t have to go through any probate process. Instead, your descendants receive their assets and property quickly and without probate fees, which can be as much as five percent of your total estate.

Maintaining Your Privacy

Because trusts do not go through the probate process, you and your heirs maintain your privacy. Your assets and their distribution never become part of a public record. However, you will have to speak with your trust lawyer in Bergen County, NJ to determine if you have to register a trust that contains securities or real estate. To avoid this registration, you can secure your assets in a partnership rather than a trustee.

Building a Charitable Trust

If you have a passion for specific charities, you can designate that some of your assets go to those charities after your death. For example, your trust lawyer in Bergen County, NJ, e.g., those found at the Kaplan Law Practice, may donate real estate, money, art or other assets to these organizations.

Steps of Building a Trust

Seeking Legal Counsel

Unless you have a background in law, you might not be aware of all the rules and regulations in place for trusts. You should contact our trust lawyer in Bergen County, NJ or use an online service to start building your trust. However, if you do feel comfortable with the material, you’re legally allowed to open a trust on your own.

Building Your Official Documents

When you’re ready to create your trust, you’ll start by building a trust document. This will clearly outline your grantor, properties and assets, beneficiaries who can receive these assets, the trustee overseeing the trust and any successor trustees to step in if your original trustee is unavailable. It’s also a good idea to create a certificate of trust, which is a document that proves the validity of your trust and the people involved in it.

Signing and Notarizing Your Documents

You need to sign your trust documents in order for them to be legally binding, and your signature should be accompanied by two uninvolved witnesses. While not all states require these documents to be notarized, doing so can further prove the trust’s validity and help prevent fraud. Talk to your trust lawyer in Bergen County, NJ to learn more

Creating a Trust Bank Account

Next, you should set up a bank account for your trust. This account will fund your beneficiaries, and it’s best to start clean with a brand-new account. If you have an existing bank account you’d like to use, you may be able to register it to your trust depending on the institution you’re using.

Transferring Your Assets

After you’ve established and notarized your trust, you should transfer your assets into it. This means you’ll need to include property deeds, vehicle titles and certificates of authenticity or ownership for any other heirlooms or valuables. Be sure to update your trust documents to include any new properties you acquire.

Designating Beneficiaries

Now that your trust is funded and includes all your assets, you can assign beneficiaries to receive them if you pass away. Assets of a trust are payable on death, which means your beneficiaries can receive them without probate. If you don’t know what probate is, Kaplan Law Practice or your local trust lawyer in Bergen County, NJ can tell you more.

Common Mistakes to Avoid When Creating a Trust

Establishing a trust can have come with many benefits, from protecting your privacy to minimizing estate taxes. However, if you make certain mistakes, your trust might not do what you had hoped it would. Here are a few common mistakes you need to avoid:

• Failing to Fund the Trust

Your trust won’t do anyone much good if it isn’t properly funded. Even if you establish a proper trust with clear instructions, it can’t do anything without assets. The assets that aren’t in your trust will have to go through probate. Therefore, you should fund your trust as soon as possible.

• Going the DIY Route

There are many DIY software programs to create trusts. While this might sound like an attractive option initially, you may want to think twice. Trusts contain complicated legal terminology that the average person doesn’t understand. If you don’t completely understand something in the form, you could make several mistakes and waste money. If you hire our experienced trust lawyer in Bergen County, NJ, from the beginning, you can have a well-prepared trust.

• Forgetting to Update Your Trust

Too many people establish their trust and forget about it. However, it’s necessary for most people to update their trusts multiple times throughout their life. When you go through a major life change, like the birth of a child or divorce, you should review your trust and make the proper changes.

• Selecting the Wrong Successor Trustee

The successor trustee is responsible for distributing the assets from your trusts to the right beneficiaries. This is a big job, so you shouldn’t choose just anyone to do it. The person should be trustworthy, organized, communicative and fair. If you don’t think anyone in your family is qualified to do the job, you can always hire a corporate trustee.

• Using the Wrong Wording

If you want your trust to carry out your wishes, you have to be careful with the type of wording you choose. If you use words like “request” or “hope,” for example, the trust might not hold up in court. It’s important to ask your lawyer what language to use to avoid complications later on.

• Failing to Read Your Trust

After your lawyer has drafted your trust, you should take the time to read through it to ensure it says what you want it to. If you don’t understand something in the document, ask your lawyer about it.

Bergen County Trust Infographic

Bergen County Trust FAQs

What is the primary purpose of a trust?

A trust is a legal arrangement that allows an individual (the grantor) to transfer assets to a trustee, who holds and manages those assets for the benefit of designated beneficiaries. The primary purpose of a trust is to protect and manage assets, provide for beneficiaries, and potentially minimize estate taxes and avoid probate.

What are the different types of trusts available in New Jersey?

In New Jersey, there are several types of trusts, including revocable living trusts, irrevocable trusts, special needs trusts, and charitable trusts. Each type serves different purposes, from managing assets during one’s lifetime to providing for a beneficiary with disabilities, or even supporting charitable causes.

How does a revocable trust differ from an irrevocable trust?

A revocable trust can be altered or revoked by the grantor during their lifetime, allowing flexibility in asset management. An irrevocable trust, once established, cannot be modified or terminated without the consent of the beneficiaries. Irrevocable trusts may offer tax benefits and asset protection, but they involve relinquishing control over the assets.

What are the benefits of setting up a trust over a traditional will?

A trust offers several benefits over a will, including avoiding probate, which can be time-consuming and costly. Trusts also provide greater privacy, as they are not public records, and can offer more control over how and when your assets are distributed to beneficiaries, especially in complex family situations or for minors.

How do I choose a trustee, and what are their responsibilities?

Choosing a trustee is a critical decision. A trustee should be someone you trust to manage your assets responsibly and in the best interests of the beneficiaries. Trustees have a fiduciary duty to act impartially, manage the trust assets prudently, file taxes, and distribute assets according to the terms of the trust. You may choose a trusted family member, friend, or a professional trustee.

Kaplan Law Practice, LLC, Bergen County Trust Lawyer

350 W Passaic St., Rochelle Park, NJ 07662

Contact Our Bergen County Trust Lawyer Today

At Kaplan Law Practice, LLC, we understand that trust laws can be complex, and making the right decisions to protect your assets and ensure your family’s future is crucial. Our experienced team is dedicated to helping you navigate the intricacies of trust creation, management, and estate planning with personalized attention and professional guidance. Whether you are establishing a new trust or need assistance managing an existing one, we are here to provide the legal expertise and support you need. Contact us today to learn how we can help secure your legacy and provide peace of mind for you and your loved ones.