If you live in New Jersey and own real estate, stocks, automobiles or other assets, estate planning can help you ensure that they are distributed according to your wishes after your death. Estate planning also allows you to set up provisions in case you are incapacitated.
Bypasses probate
With estate planning, you can specify the beneficiaries who receive your home, stock portfolio and other valuables. Adding a living trust to your estate plan allows you to avoid probate, which is the court-supervised process of distributing your estate. Probate can be lengthy and costly. Using a revocable trust eliminates this problem.
Provides flexibility and privacy
Having a revocable trust lets you make changes while you’re still alive, so it can be set up and changed at any time. It will also keep information about your assets private after you die. If you only have a will, the distribution of your estate will be a matter of public record.
Establishes your wishes
Life can drastically change if you get ill or have an accident, leaving you incapacitated mentally or physically. When you can’t make decisions, having a trust can help. A trustee will help oversee your financial affairs to ensure they are taken care of correctly.
While you can benefit from creating a trust in many ways, there are also a few cons. Unfortunately, you won’t receive a tax benefit when you choose this option. The assets in the trust will incur taxes on their gains. Weighing in this factor is important when you’re forming your estate plan.
Creating a living trust can provide peace of mind that your affairs will be handled discreetly and without delay when you pass away.