What are Other Ways to Pass Property in New Jersey Besides a Will?
A last will and testament is a foundational estate planning document. However, it is not the only way to pass down property or assets in New Jersey. In fact, there are other options that can be more advantageous in certain situations. At Poulos LoPiccolo PC, we are committed to helping people and families find the right solution for their specific situation. Within this article, our New Jersey estate planning lawyer explains the ways you can pass on property other than a will.
An Overview of Other Ways to Pass Property Apart from Using a Will in New Jersey
A Revocable Living Trust
A revocable living trust is one of the most common, straightforward ways to pass down property without using a will. In New Jersey, a revocable living trust can hold legal title to property during the settlor’s lifetime and direct its administration after the settlor’s death. The settlor commonly serves as the initial trustee and retains the authority to amend or revoke the trust while competent. Upon death, the successor trustee distributes or continues managing the trust property according to the governing instrument without requiring those assets to pass through probate. It is governed by New Jersey’s Uniform Trust Code.
Beneficiary Designations
Many financial assets pass pursuant to a contractual beneficiary designation rather than a will. Life insurance policies, annuities, retirement accounts, and certain employee benefits may be paid directly to the named beneficiary upon the owner’s death. To be effective, it is crucial that your beneficiary designations are fully up-to-date.
Pay-on-Death
Bank accounts may also be established as payable-on-death accounts under New Jersey’s Multiple-Party Deposit Account Act. The designated payee generally receives the remaining account balance after the original owner’s death, subject to statutory rules protecting enforceable estate claims when probate assets are insufficient.
Transfer-on-Death
New Jersey also recognizes transfer-on-death registrations for eligible securities under the Uniform TOD Security Registration Act. A properly registered security passes by contract to the surviving beneficiary and is expressly treated as nontestamentary. TOD may be the best option for certain types of financial assets.
Right of Survivorship (Real Property)
Property can pass automatically to a surviving co-owner when the ownership instrument creates a valid survivorship. For New Jersey real estate, N.J.S.A. 46:3-17 requires the deed to expressly state the intention to create a joint tenancy rather than a tenancy in common. A joint tenant’s interest is then absorbed by the surviving joint tenant or tenants at death, ordinarily outside probate. Married couples may also hold qualifying property as tenants by the entirety under state law.
Speak to Our New Jersey Estate Planning Attorney Today
At Poulos LoPiccolo PC, our New Jersey estate planning lawyer is standing by, ready to protect your rights and your interests. If you have any questions about the options for passing on property besides a will, we are here to help. Please do not hesitate to contact us today for a confidential consultation. We handle estate planning matters throughout all of New Jersey.
Source:
pub.njleg.gov/bills/2014/AL15/276_.PDF
