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Helping New Jersey residents protect their assets

In today's economy, individuals are smart to find ways to ensure their assets are protected. The best way to accomplish this task is to make sure one has an estate plan. One of the ways that many individuals may choose to help protect their assets is through trusts.

Trust administration can be a complicated issue, but with the right guidance and assistance, it can help many families protect their assets in cases of creditors. Unlike the more common and traditional revocable living trust, a domestic asset protection trust is irrevocable. The key difference between the two is that a creditor can come after assets held in a revocable trust because the settlor retains control over it at all times. However, with an irrevocable trust the settlor of the trust remains the discretionary beneficiary of the assets in the trust, but retains the ability to shield the assets of the trust from potential creditors.

Irrevocable trusts may be a good way for families to ensure their assets are protected and can stay in the family, despite the financial circumstances at the time. However, not all assets may be the right fit for an irrevocable trust, especially if the trust is being held in a state other than New Jersey. The best types of assets to put into an irrevocable trust are stocks, bonds and mutual funds.

Estate planning is very specific to the individual and their family. There are various types of trusts that can be administered according to the specific needs of the family. Experienced estate planning professionals can assess one's finances and help determine the most beneficial plan to accomplish one's specific goals.

Source: Forbes, "How To Protect Yourself In A Divorce Using A Domestic Asset Protection Trust," May 15, 2014

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