Will a Revocable Living Trust Help Me Avoid Probate in New Jersey?
Probate has the potential to be a long, complicated process. For that reason, many people want to avoid it. A revocable living trust can be one of the most straightforward, cost-effective estate planning tools to limit your exposure to probate—or to potentially avoid it altogether. Here, our New Jersey revocable living trust attorney explains the key things to know about trusts and probate.
What is a Revocable Living Trust?
Under New Jersey law (N.J.A.C. 10:71-4.11), a revocable trust is any trust that can be withdrawn (terminated) by the grantor based solely on his or her own discretion. The person who creates the trust will usually serve as the initial trustee. He or she retains the right to amend or revoke the trust at any time. Upon his or her death, a successor trustee usually takes over the entity and administers the trust according to its terms. Revocable trusts offer advantages and disadvantages:
- Primary Advantage: A revocable living trust allows you to avoid probate.
- Primary Disadvantage: A revocable living trust offers little asset protection.
A Revocable Living Trust is One of the Most Straightforward Strategies to Avoid Probate
Probate is the legal process through which a deceased person’s will is validated, their debts/taxes are paid off, and their assets are distributed. In New Jersey, probate is handled by the county Surrogate’s Court. It is a process that involves time, legal filings, and potential delays—especially if dispute arises. Probate is also part of the public record.
A revocable living trust allows assets to pass directly to named beneficiaries without going through probate. When you create a trust and transfer ownership of your assets into it during your lifetime, those assets are no longer legally held in your name at the time of your death. Because they are titled in the name of the trust, they are not subject to probate. Instead, a successor trustee will take control and distribute those assets according to the terms of the trust that you set up.
Note: While a revocable living trust can help you avoid probate, it must be properly funded—meaning assets must be retitled in the name of the trust. If this step is skipped, those assets may still be subject to probate.
A Revocable Living Trust is Not the Right Trust for Every Situation
A revocable living trust offers flexibility and allows you to retain full control over your property and assets while setting you up to avoid probate. With that being said, it is not ideal for every situation. It does not shield assets from creditors, reduce estate taxes, or provide Medicaid planning benefits.
Speak to Our New Jersey Living Trust Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning lawyer has extensive experience helping people set up trusts. If you have any questions about revocable living trusts, we can help. Contact us today for a fully confidential, no obligation initial consultation. From our Monmouth County office, we help people and families with living trusts throughout New Jersey.
Source:
nj.gov/humanservices/dmahs/clients/SNT_regulations.pdf
