Can I Use a Revocable Living Trust to Skip Probate in New Jersey?
A revocable living trust is a popular, potentially powerful estate planning tool that people can use to retain control over their assets while alive and direct their distribution after death. In New Jersey, assets properly transferred into a revocable trust can bypass the probate process entirely—as long as the trust is properly funded. Here, our Monmouth County trust lawyer explains the key points to know about using a revocable living trust to skip over the probate process in New Jersey.
What is Probate in New Jersey?
The County of Monmouth explains that probate is the legal process through which a deceased person’s assets are administered and distributed under court supervision. Notably, under New Jersey state law, it is the Surrogate’s Court in the county where the decedent resided that oversees the process. If a valid will exists, it is admitted to probate, and the named executor is authorized to manage the estate. If there is no valid will, probate may still be required by the estate, which will pass through New Jersey’s intestate succession laws (N.J.S.A. § 3B:5-3). Probate can be a complicated, time-consuming process. For that reason, many people want to avoid it.
Revocable Living Trust Can Bypass Probate
A revocable living trust is an estate planning tool that allows a person (the grantor) to transfer ownership of assets into a trust during their lifetime while still retaining control over the property. Upon the grantor’s death, the successor trustee administers the trust and distributes assets according to its terms—without any involvement from the probate court. The trust holds legal title to the assets—meaning that they do not become part of the probate estate. New Jersey recognizes this mechanism as a valid way to bypass probate.
Note: A revocable living trust can be a great way to bypass probate. However, it is not the right estate planning option for every situation. A downside is that these types of trusts offer very little asset protection.
A Living Trust Must Be Properly Funded to Skip Probate in New Jersey
It is important to emphasize that establishing a revocable living trust does not automatically bypass probate. For the assets in a trust to bypass probate, the trust must be properly funded. Funding a trust means transferring legal ownership of assets—such as real estate, bank accounts, and investments—into the trust’s name during the grantor’s lifetime. If assets remain outside the trust at death, they may still be subject to probate proceedings.
Contact Our New Jersey Revocable Trust Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning lawyer has the skills and experience to help you set up a living trust. If you have any questions about using revocable trusts to avoid probate, we are here to help. Contact us today for a fully confidential no obligation initial consultation. Our firm provides trust planning services in Monmouth County and throughout New Jersey.
Source:
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