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How Financial Frictions Hinder Innovations

A recent study co-authored by Wharton’s Thomas Winberry reveals that financially constrained firms face a ...

The post How Financial Frictions Hinder Innovations first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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5 Budgeting Myths That Stop People from Saving

Budgeting is crucial for managing your money well. However, many people avoid it because they ...

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Are Trusts Only For the Wealthy?

May 18, 2015

A common misconception holds that living trusts are only for the very rich. The belief may stem from history; in the 16th century Britain kings often controlled their lords’ power by seizing and distributing their lands as they died; the structure of a trust allowed circumvention by deeding property to the church, with the understanding it would later revert to the proper heirs. shutterstock_235005190

By measure of the 2010 Survey Of Consumer Finances only 1.3% of Americans have received monies through a trust.

Yet, the median amount is a moderate $285,000, and with as little as $100,000 the benefits can be significant:

  1. The lengthy and slow probate process can subject funds to fees and charges amounting to between 2% and 4% of total estate value.
  2. A trust avoids probate as it is private; as a distinct separate legal entity, distributions occur without court involvement.
  3. Appointment of a trustee ensures that future decisions can be placed in effect long after the trust is created.
  4. A trust fully utilizes each person’s Unified Credit or the State estate tax exemption. Mandated by Congress, it will shelter, per person, just over $5 million or $675k(in NJ), whichever amount is preferable. But, the trust should be structured with “A-B Provisions”, the death of one spouse separates the trust into two parts thus enabling the shelter from estate tax.

It is important to note that as total funds increase beyond that amount, estate taxes of up to 35% take effect. Living trusts are easy to set up, low-maintenance, and keep finances out of the public eye even after death. Consultation with an attorney specializing in estate planning can insure that your assets are protected; start a conversation with us today at info@lawesq.net.


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Schedule your free Exploratory phone call

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can be of assistance.

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listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
How Financial Frictions Hinder Innovations

A recent study co-authored by Wharton’s Thomas Winberry reveals that financially constrained firms face a ...

The post How Financial Frictions Hinder Innovations first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
5 Budgeting Myths That Stop People from Saving

Budgeting is crucial for managing your money well. However, many people avoid it because they ...

The post 5 Budgeting Myths That Stop People from Saving first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more