Does a Trust Avoid Probate in NJ?

Probate is a legal process in which the courts determine how a person’s assets are distributed after their death. This process can be costly and time-consuming, so many people take steps to avoid it entirely.

Certain trusts can avoid probate in New Jersey, but only when used correctly. There are also options to ensure the property does not go through probate. A dedicated estate planning attorney can answer questions about the other methods.

Why Avoid Probate?

Skipping the probate process can be beneficial for a decedent’s surviving relatives. One of the biggest issues with probate is the amount of time it can take. A lot goes into the court proceedings, including appointing an administrator and providing enough time for creditors to file a claim. Instead of waiting months or longer to distribute assets, a trust can do it immediately.

There are also financial savings to consider. It is a good idea to rely on an attorney for court proceedings. This is especially true in this scenario, where multiple appearances before a judge are likely. Legal fees can quickly eat up much of a person’s inheritance.

Finally, trusts provide privacy. The public can access the details divulged in court proceedings, but trusts are administered privately.

Certain Trusts Can Avoid Probate

One of the most popular options for keeping assets out of probate court is the use of living trusts. These are legal entities that formalize a person’s ownership of assets during their lifetime. When the individual passes away, those assets do not have to go through probate because the decedent does not technically own them.

Instead, the property is distributed to the beneficiaries named in the trust documentation. This happens automatically without the need for court involvement.

Transferring assets into a trust can be a successful strategy, but even a minor error in the paperwork can frustrate the entire process. Other errors can involve incorrect beneficiary information or a failure to update the documentation over time. A skilled attorney could ensure that this aspect of an estate plan is prepared in a way that complies with the law.

Other Ways to Avoid Probate

Revocable trusts are a standard tool for avoiding probate in New Jersey, but there are also other options to consider. A simple approach for certain assets and accounts is a payable-on-death designation. When an asset is designated payable on death, ownership is automatically transferred to the named beneficiary as soon as the original owner passes away without the need for court approval.

Another option to consider is joint ownership, in which two individuals equally own property. When one dies, the other automatically gains full control over the asset.

Talk to an Attorney About Avoiding Probate With a Trust in New Jersey

Trusts are one way to avoid probate in NJ. There are other options to consider as well. In addition to the use of living trusts, there are other tools like payable-on-death contracts that are available during the estate planning process. Reach out to an attorney at Nesevich Law who can further explain your options.