Toms River, New Jersey - Christine Matus of The Matus Law Group (https://matuslaw.com/what-is-a-credit-shelter-trust-in-new-jersey/) is providing comprehensive guidance on Credit Shelter Trusts for families across the state. As a leading New Jersey trust attorney, Ms. Matus highlights how a properly structured Credit Shelter Trust can preserve wealth, streamline multigenerational transfers, and align with New Jersey’s inheritance tax framework while coordinating with federal estate tax exemptions.
A Credit Shelter Trust, often called a Bypass or Family Trust, allows a married couple to use the deceased spouse’s available federal estate tax exemption by funding the trust up to the exemption amount at the first death. The surviving spouse may receive income and, subject to stated standards for health, education, maintenance, or support, limited principal distributions during life. Because the trust, not the spouse, owns the assets, the remaining principal may pass to the next generation without inclusion in the surviving spouse’s taxable estate. As a New Jersey trust attorney, Ms. Matus emphasizes careful drafting, asset selection, and titling so that funding mechanisms in a will or revocable trust operate as intended at administration.
In New Jersey, planning with a Credit Shelter Trust remains highly relevant. The state’s estate tax no longer applies to deaths occurring on or after January 1, 2018, yet the New Jersey Inheritance Tax continues to affect transfers to certain classes of beneficiaries. A New Jersey trust attorney can structure a Credit Shelter Trust to reflect family relationships, anticipated beneficiary classes, and asset characteristics such as basis, liquidity, and growth potential. When implemented with coordinated beneficiary designations, retitling of brokerage or real property interests, and post-mortem elections where appropriate, a Credit Shelter Trust can reduce tax exposure, reinforce creditor protection for beneficiaries, and support disciplined asset management.
Trust administration requires ongoing attention. Trustees must invest prudently, maintain detailed records, and comply with fiduciary duties under New Jersey law. Federal filings may include IRS Form 1041 for trust income and Schedule K-1 for distributions. Funding decisions at the first death, such as balancing highly appreciated assets against income-producing holdings, can influence both tax outcomes and beneficiary experiences for many years. Although a Credit Shelter Trust is generally irrevocable after the first death, modern drafting techniques and fiduciary provisions can introduce measured flexibility, including limited powers of appointment and trustee succession planning, without undermining the trust’s protective benefits.
About The Matus Law Group:
The Matus Law Group is a New Jersey-based estate planning and elder law firm serving families throughout Ocean County and Monmouth County. The team, led by attorney Christine Matus, advises on living trusts, wills, special needs planning, probate, and asset protection strategies tailored to household goals and life stages. The firm supports clients with thoughtful counseling, clear documentation, and responsive administration services that promote orderly transfers and long-term stability. For consultations, call (732) 281-0060 or visit The Matus Law Group online to schedule an appointment.
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Company Name: Matus Law Group
Contact Person: Christine Matus
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Phone: (732) 281-0060
Address:81 E Water St #2C
City: Toms River
State: New Jersey 08753
Country: United States
Website: https://matuslaw.com/
