What is a Grantor Trust? - Christine Matus

From Matus Law Group – What Is a Grantor Trust in New Jersey? explores how individuals in New Jersey can preserve control over assets while achieving long-term estate planning goals. This episode unpacks the legal and tax implications of grantor trusts, detailing how they enable strategic wealth transfer, simplify probate, and support Medicaid planning. Join us as we break down how these powerful tools fit into New Jersey law, including insights from Ocean County trust attorney Christine Matus.

Listeners will gain clarity on what qualifies a trust as a grantor trust under the Internal Revenue Code, and why retaining certain powers—like revocation rights or investment control—matters for tax treatment. Whether it’s a Revocable Living Trust to avoid probate, a Spousal Lifetime Access Trust (SLAT) for estate tax efficiency, or a Grantor Retained Annuity Trust (GRAT) to pass on appreciating assets, we’ll guide you through five common types of grantor trusts and how they function.

This episode also covers practical benefits such as income shifting, tax-free gifting, and strategic Medicaid planning under New Jersey’s five-year lookback rule. You'll learn how a grantor’s payment of trust taxes can actually grow the trust faster and reduce future inheritance tax burdens. But it's not all upside—we discuss potential drawbacks like legislative uncertainty, personal tax liability, and irrevocable asset transfers.

Christine Matus, founder of Matus Law Group in Ocean County, offers legal insight on how to properly set up a grantor trust in New Jersey under N.J. Revised Statutes Title 3B. With a focus on protecting family legacies and complying with state and federal law, this episode helps residents across Toms River and beyond understand whether a grantor trust could support their estate planning goals.

Matus Law Group

81 E Water St #2C, Toms River, NJ 08753, United States

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