If you are approaching estate planning in New Jersey, you may be weighing up the pros and cons of a trust. This is undoubtedly an effective estate planning tool, and it comes with a wide range of benefits. That being said, some families may also experience certain downsides when choosing trusts. So what are the disadvantages of a trust, and when should you avoid using this estate planning tool?
The truth is that each family is different, and there is no easy way to tell whether a trust is the right choice for you. On top of that, there are many different types of trusts, so it is difficult to issue blanket statements like “all trusts are bad” or “or trusts are good.” In the end, the only real way to make an informed decision is to book a consultation with an estate planning attorney in New Jersey. Our legal professionals can assess your unique situation and recommend the best course of legal action.
Trusts Can be Expensive
The most obvious disadvantage of a trust is the cost factor. It is no secret that trusts can be expensive, and this is why they are typically best-suited to families with considerable wealth. That being said, you do not necessarily have to be “rich” in order to set up a trust. You just need to have to be willing to invest somewhat in your estate plan.
Trusts Require Continuous Effort and Time
Another potential disadvantage of a trust is the fact that they require a considerable amount of time and effort. Your trust will need to be managed by a trustee, and this individual will be required to keep an eye on the assets within your trust. The need to manage your trust never really ends, and your trustee will need to perform various tasks throughout the year. Some of the most notable demands include meticulous record-keeping.
Trusts Can be Inconvenient for Your Beneficiaries
Trusts can also be a little inconvenient for your beneficiaries. After your passing, assets will not be immediately distributed to the beneficiaries in the same way as a trust. There is a set process that the trustee must follow, and conditions may need to be met before the assets are distributed. Some trusts are also set up so that beneficiaries will need to wait until they reach a certain age. These wait periods can be frustrating for some beneficiaries.
Enlist the Help of a Qualified Estate Planning Attorney Today
If you have been searching the New Jersey area for a qualified, experienced estate planning attorney, look no further than Giro, LLP, Attorneys at Law. With our help, you can accurately weigh up the pros and cons of a trust before choosing the best estate plan for your unique situation. Remember, there are many different types of trust to consider. Other estate planning tools such as wills can also be very effective. Book your consultation today, and we’ll help you go through your full range of estate planning options.
Publisher: Media Challengers
