People in New Jersey can control many different aspects of their lives, but there are certain things that are out of their control. One of those things is that people cannot control is time. People will continue to grow older and no one will live forever. This is an unfortunate fact of life, but like other aspects of life people should prepare for it. People can do this by ensuring that their property ends up with the people they want to have it after they pass away.
People have a couple options in order to accomplish this goal. One is to draft a will. Another is to draft a revocable trust. Both will dictate who will receive their property, but there are certain benefits that revocable trusts can provide.
- Control when Children Receive Property. Without a trust, children receive property when they are 18 years old. However, people are not always very mature at that time. A trust allows the parent to control when children receive property such as saying they only receive a portion of the property at later ages than 18. The hope is that they will be more responsible at a later age.
- Avoiding Probate. While having a will dictates who will receive property, if there is just a will, the family will still need to go through probate to distribute the assets. However, a trust allows the family to avoid probate and the trustee can administer the trust without having to go through court. Avoiding probate also allows the family to keep everything private since probate is a public proceeding.
- Reduce Estate Taxes. For married couples trusts can allow one spouse to avoid having to pay estate taxes. This can save the family potentially thousands of dollars.
No one lives forever in New Jersey and having a good estate plan can ensure that people’s property ends up with the people they want to have it after they pass. One option people have is create a revocable trust. These trusts allow people more control over their property and also allow people to change it while they are still alive, which can be beneficial as things can change throughout one’s life. It is important that these are drafted properly though and consulting with an experienced attorney may help ensure one achieves their goals.