Should I Have A Will Or A Trust In New Jersey?
Revocable living trusts and wills are both legal vehicles to help you manage your assets, both now and after you are gone. In reality, you can have both a will and a revocable living trust in New Jersey, as both ensure different things for you, depending on your situation. To speak with an experienced estate planning attorney in Monmouth County or an estate planning attorney in Ocean County, call us today.
What is a Trust?
A revocable living trust allows you to maintain control over your assets while you are alive, but then easily pass these assets on after your death while protecting them from probate costs. When a trust document is created, your assets are then transferred into the living trust which you have control over while you are alive and then your designated successor trustee if you die or become incapacitated. When you die, your trustee can easily take over without the need for any court approval.
Your revocable living trust can be fully customized to your own needs with the help of an New Jersey estate planning attorney. A living trust will protect your interests should you at some point become incapacitated at which point your trust will be managed by your successor trustee. This protects your financial life as long as you are alive and then disburses your assets to your wishes upon your death.
Revocable living trusts can establish many things as far as how your assets are managed and disbursed. A living trust in New Jersey enables you to
- Establish timed disbursements of your estate to beneficiaries
- Avoid probate costs
- Decrease estate taxes
- Reduce creditor exposure
- Allow for lifelong access for special needs dependents
- Manage business or personal assets if you become incapacitated
What is a Will?
A will is another estate planning vehicle in New Jersey that will set out your wishes regarding the distribution of your assets as well as the care of your children. Your will names an executor, or the person who will handle the matters of your estate, how any taxes or debt will be paid, who will act as guardian to your children, and how personal property will be distributed to your beneficiaries.
The downside is that if you only have a will at the time of your death, your estate will be subject to probate, which can be time-consuming as well as costly.
Living Trusts Vs. Wills: Weighing the Pros and Cons
New Jersey wills and revocable living trust documents serve different purposes yet can frequently overlap. Whereas a will goes into effect when you die, a revocable living trust goes into effect as soon as it is created and remains under the control of the grantor until he or she dies or becomes incapacitated.
A living trust may be more labor-intensive to create and manage and may also have associated costs. But a living trust will avoid the expense and time-consuming probate process that you will be subject to with a will. With a living trust in New Jersey, the beneficiaries of the estate have immediate access to assets in the trust. In the case when the terms of the will and trust conflict, the trust will supersede the will and probate will have no authority over it.
Many estate planning attorneys will suggest that an individual have both a will and a living trust in New Jersey. It’s important to discuss your particular needs with an estate planning attorney in New Jersey to understand how either document will fulfill them. At The Matus Law Group, we would be happy to discuss your needs in a free consultation.