How Can I Avoid Probate?

Probate is a legal process that happens after a person dies, and it is a relatively lengthy process. It involves authenticating a deceased person’s will, identifying and distributing a person’s assets according to the terms of their will, and making sure that all assets are distributed appropriately. Probate also involves settling debts left by the deceased, which typically happens before any assets are actually distributed to heirs, since some of the deceased’s property may need to be assessed for repaying debts owed. The process is typically overseen by the person appointed as the executor of the estate by the deceased.
Given that probate can be a complicated process, a person might want to take steps to avoid probate. In other words, you might be wondering if there are options for leaving assets to your loved ones or to specific charitable organizations without the need for probate. For many assets, it may be possible to avoid probate. Our New Jersey estate planning lawyers can tell you more.
Establishing a Living Trust
The first way to prevent assets from having to be probated involves creating a living trust. This type of trust is also known as an inter vivos trust, and it is a broad term for a trust that you create while you are living. A living trust can be revocable (meaning you can change the terms or cancel it) or irrevocable. Once you create a trust and transfer assets to it, you can designate any beneficiaries of the assets held in the trust. New Jersey law actually allows the person who makes a trust to name themselves as the trustee, which means that you can remain in control of the trust.
Designating Beneficiaries
Many types of assets in New Jersey allow the owners to designate beneficiaries, including life insurance policies, retirement accounts, and various types of bank accounts. For policies, you will simply identify the beneficiary of the policy, and it will pay out to them according to the terms when you die. For bank accounts, New Jersey law allows you to add what is known as a “payable on death” (or POD) designation to bank accounts, which will result in the assets in the account being paid out to the named beneficiary upon your death.
Owning Real Property Jointly
Finally, there is a way to avoid probate for real property. Any real estate you own can be owned jointly as “joint tenants with the right of survivorship.” The other party (0r parties) who jointly own any real estate with you can have a right of survivorship, which means they will inherit the property if you die without the need for the real estate to go through probate.
Contact a Summit Estate Planning Attorney
If you have questions about leaving assets in a way that will not require the assets to be probated, you should seek advice from an attorney as soon as possible about estate planning tools that may be beneficial to you. One of the experienced New Jersey estate planning attorneys at Dempsey, Dempsey & Sheehan can talk with you today to tell you more about your options. Contact us to get started on all of your estate planning needs.
Sources:
law.justia.com/codes/new-jersey/title-3b/
law.justia.com/codes/new-jersey/title-3b/section-3b-10-4/