Revocable living trusts offer flexible control over property while the grantor is alive and can ease estate administration at death. They often reduce the need for probate, maintain privacy, enable smoother transfer of real estate, and allow for continuity in managing assets if incapacity occurs, making them a practical tool for many Gloucester County households.
By moving assets into a trust and naming a successor trustee, families can often avoid lengthy probate proceedings, allowing for quicker access to funds needed for daily expenses and mortgage payments while preserving privacy and reducing administrative burdens through a defined trust administration process.
Hatcher Legal focuses on business and estate law, offering experience with wills, trusts, power of attorney documents, and estate mediation. We emphasize clear communication, careful drafting, and plans tailored to each client’s family and business circumstances to create reliable, long-lasting estate arrangements.
Regular plan reviews help adapt the trust to marriage, divorce, births, deaths, or business changes. We also provide guidance for successor trustees about duties, recordkeeping, tax filing obligations, and effective administration to reduce disputes and meet fiduciary responsibilities.
A revocable living trust governs assets placed into the trust during the grantor’s life and provides a mechanism for distribution and management without probate for those assets. A will directs distribution of assets that remain outside the trust and handles appointment of guardians for minor children. The trust offers continuity and potential probate avoidance for funded property, while a will addresses any remaining property and serves as a safety net. Both documents often work together to form a complete estate plan that matches your family and financial goals.
A revocable living trust generally does not provide immediate federal estate tax reduction because the grantor retains control and income rights. Estate tax planning typically requires different, irrevocable structures or lifetime gifting strategies to reduce taxable estate value under applicable tax rules. Trusts can, however, be part of a larger plan that considers tax strategies, charitable planning, or marital deduction planning where appropriate. For substantial estates, careful coordination with tax advisors is recommended to address potential estate and gift tax exposure under federal and state law.
Funding a living trust requires changing ownership or beneficiary designations so assets are titled in the trust name, such as re-titling real estate deeds, transferring bank and investment accounts, and documenting ownership of business interests. Retirement accounts and some payable-on-death accounts may remain outside but should align with the trust plan. We recommend starting with a complete asset inventory to identify items to fund. Professional assistance helps ensure deeds and account registrations are properly executed to avoid unintended probate or conflicts between account beneficiaries and trust provisions.
Yes, a grantor commonly serves as the initial trustee of a revocable living trust, retaining control over management and distributions while alive. This arrangement provides flexibility to change terms as circumstances change and helps maintain familiar control until the grantor becomes unable to manage affairs. Because the grantor acts as trustee, the trust remains revocable and generally does not shield assets from the grantor’s creditors in the same way as certain irrevocable trusts. Naming qualified successor trustees and alternate individuals ensures continuity when the grantor cannot serve.
If the grantor becomes incapacitated, the successor trustee named in the living trust can step in to manage trust assets according to the trust’s directions without court-appointed guardianship. The trust typically specifies how and when the successor assumes duties and may include guidelines for health care and financial decisions. This process helps families avoid delays and provides continuity in paying bills, managing investments, or running business interests. Advance planning ensures trustees have access to necessary account information and clear authority to act on behalf of the grantor.
Yes, a pour-over will is still important when you have a living trust. It captures assets inadvertently left outside the trust and directs them into the trust at death, acting as a safety net to ensure your overall plan is effective even if funding was incomplete. While the pour-over will may still require probate for assets passing under the will, it ensures those assets ultimately fall under the trust’s distribution terms and helps maintain consistency in how your estate is administered and distributed to beneficiaries.
Retirement accounts and certain insurance policies pass according to beneficiary designations, which can supersede trust provisions if not coordinated. Naming the trust as a beneficiary can be appropriate in some circumstances but may have tax consequences and require special trust language to qualify for favorable retirement account treatment. Coordination between beneficiaries and trust terms is essential. We review retirement account designations and advise on whether a trust should be a beneficiary or whether alternate planning better meets tax and distribution goals to avoid unintended outcomes for heirs.
Yes, placing out-of-state real estate into a properly structured living trust can reduce the need for ancillary probate proceedings in the state where the property is located. That often saves time and expense for beneficiaries who would otherwise open probate in multiple states. Each state has distinct rules for property transfer and real estate recording, so careful deed preparation and compliance with local formalities are necessary. Professional guidance helps ensure transfers are completed properly and the trust achieves intended probate avoidance benefits.
A successor trustee carries duties to gather trust assets, pay valid debts and taxes, keep accurate records, and distribute assets to beneficiaries under the trust terms. Trustees must act in good faith and follow the trust’s instructions while communicating with beneficiaries about administration progress. Responsibilities also include filing required tax returns, securing and valuing assets, and managing ongoing affairs such as rental properties or business interests. Successor trustees should seek guidance for complex matters and maintain transparent records to reduce potential disputes among beneficiaries.
Review your living trust after major life events such as marriage, divorce, births, deaths, significant changes in asset holdings, or business transitions. Even without major events, periodic reviews every few years help ensure documents reflect current laws and your objectives, and confirm that funding remains complete. An updated review helps address changes in beneficiaries, successor trustees, or tax rules that could affect the plan. Regular maintenance prevents unintended outcomes and ensures your trust continues to serve its intended purpose for your family and business interests.
