Planning for the future of your estate in New Jersey requires a clear understanding of the legal tools available to protect your assets and your family. Two of the most common options are wills and revocable living trusts.
While both serve as foundations for estate planning, they function differently in terms of cost, privacy and the probate process. Understanding the differences between wills and revocable living trusts can help you best determine which path best aligns with your long-term goals.
The traditional and straightforward solution
A will dictates asset distribution after your death and is used in New Jersey probate through the county Surrogate’s office. It is also the tool for naming guardians for your minor children.
While wills are generally simple and less expensive to create, probate makes your assets and heirs public. They also only work after you pass away. You will need other documents for incapacity planning.
When your priority is privacy and control
A revocable living trust holds your assets during your lifetime and transfers them after you die without needing a probate. Trusts also keep your affairs private since it is not filed with the court.
Aside from giving beneficiaries faster access, a trust lets you name someone to manage your affairs if you become incapacitated. However, trusts can take more time and money to set up because you need to retitle your assets into the trust’s name.
Key comparison points
If you have a simple estate and young children, a will may be better as it costs less to set up and allows you to establish guardianship. Revocable living trusts are ideal for more complex asset management and incapacity planning.
You may also want to consider having both a living trust with a pour-over will. The trust can hold your bank accounts and property while the will can act as a safety net for your remaining assets. When you pass away, the will can move any missed assets into the living trust.
Helping you secure your legacy
Deciding between a will and a revocable living trust is a small but significant step toward building a comprehensive plan for your estate. A lawyer can help you select the right strategy that ensures your beneficiaries are cared for and honors your wishes.