A trust is a flexible estate planning tool that individuals can use to achieve multiple goals, including the management, preservation, and tax-efficient distribution of wealth.

Although many individuals focus on the objective of tax minimization when creating trusts for the benefit of their loved ones, a recent case decided by the New Jersey Supreme Court, Tannen v. Tannen, illustrates why individuals should also keep the goal of asset protection at the forefront of their minds. Tannen addresses whether, in a divorce proceeding, New Jersey courts will take into account the assets of a trust in which one of the divorcing spouses has a beneficial interest for the purpose of determining alimony.

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