NJSBA Family Law Section

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  • 1.  Trusts and minors

    Posted 07-02-2020 11:20 AM
    For those with more familiarity in this area, I'm helping a friend on a simple will - 

    1.  She has three minor children and no spouse.  Is it better to designate a trust as a named beneficiary of a 401k and IRA rather than minor children (she will designate a guardian)?  I'm assuming naming a trust as a beneficiary makes this asset a non-probate asset.  What are the tax implications for the trustee?

    2.  Is there any advantage to removing the beneficiary designations completely, and just having everything be treated as residuary estate to be divided among the children equally and held subject to a trust if they are under 25?

    Thanks in advance for any guidance.

    Have a safe and healthy holiday weekend!
    Sadaf

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    Sadaf Trimarchi Esq.
    Law Offices of Sadaf Trimarchi
    (201)292-4536
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  • 2.  RE: Trusts and minors

    Posted 07-02-2020 12:17 PM

    What is the size of the estate at his point, inclusive of probate and the non-probate assets?

     

    Robert E. Goldstein, Esq.
    Drescher & Cheslow, P.A.

    610 Bridge Plaza Drive

    Manalapan, NJ 07726

    (732) 972-1600
    Fax (732) 972-0038
    E-mail: [email protected]

     

    Visit my personal website:  www.mydivorcelawyernj.com

    Member, Middlesex County Bar Association,  Monmouth Bar Association, New Jersey Association for Justice and New Jersey State Bar Association

                                     

     

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  • 3.  RE: Trusts and minors

    Posted 07-02-2020 04:27 PM
    Gosh, no don't designate qualified accounts to estate or trust unless you want all of the income taxes due to come due the year of death. This is probably why there is no such thing as a simple will. A will is different from estate planning. 

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    Debra E. Guston, Esq.
    Guston & Guston, LLP

    Adoption Director/Past President
    Academy of Adoption & 
    Assisted Reproduction Attorneys 
    201-447-6660 w
    201-417-8252 c



    Original Message