Probate is a multi-step, legal proceeding that happens as soon as someone dies, which entails the administration and distribution of an estate according to the deceased person’s last will or through the laws of a given jurisdiction. Although the intention of the procedure is to promote equity and ensure fairness in the share of assets consumed, aftermath can be costly, time consuming, and most often than not leaves the family members in grief, rattled in tension and overheads. In fact, this holds more in New Jersey where depending on whether there is a lot of property or the complications of the property, probate can last anywhere from months to years. But still many ask : Is there a way that I can completely prevent probate in New Jersey? Yes it is possible, but it requires proper time and the right plan into place.

Things To Know About Probate In New Jersey

Before going into the different ways about how to avoid probate, it is important to know what the term probate means. The process of probate in New Jersey where the will of the deceased (if there is one) is proved in the court, retires the decedent’s assets, pays the decedent’s liabilities to all legitimate claimant individuals and distributes what is left to the beneficiaries.

Even if it is intended to defend all parties, the probate process is often slow in execution and expensive because it incurs court costs, lawyer’s payments, and is often administratively intensive. This scenario has led many people to look for options of avoiding probate altogether.

Reasons Why People Avoid Probate

There are several reasons why individuals seek to avoid probate including:

  • Confidentiality: Avoiding probate also ensures that the details of the estate remain private since probate paperwork is made public. This is exposing confidential information on the assets owned and most importantly, on the earnings.
  • Expenses: Expenses incurred in order to distribute a testator’s assets to intended beneficiaries include excessive costs on the legal processes, remuneration for an administrator, court costs etc.
  • Wastage of time: Depending on the type of estate and whether the heirs have any disputes, the process of settling the estate by a legal order can take several months or even years.
  • Depressors: In the case of families who bias towards traditional practices such as burial, the process of probate drains emotional and physical resources.

Methods to Avoid Probate in New Jersey

  1. Establish A Living Trust

One of the best alternatives to the probate process is the establishment of a living trust. This is where you create a trust enabling you to retain control over your assets.

In your lifetime, you may be the trustee and also name a successor trustee who can manage and distribute your assets after your death. Because the assets are owned by the trust, these assets are not subject to probate.

Advantages:

  • Probate is avoided: In the case of a living trust, the assets will not need to go through probate which will save time and costs.
  • Control: Trust amendment and revocation is possible while the settlor is still alive.
  • Confidentiality: Unlike a last will and testament, which becomes public upon the death of the testator, a living trust is not a public record.

Disadvantages:

  • Cost of getting started: A trust is more expensive to establish than it is to write a will.
  • Overkill: The same assets must be transferred to the trust hence careful management is necessary.
  1. Joint Ownership of Property

As New Jersey law recognizes joint ownership with right of survivorship, this can also be used as a method of avoiding probate. This applies to assets that are co-owned by another person which could be real property, bank accounts or vehicles. If one owner dies, the other owner has full rights of ownership of the property without probate.

Advantages:

  • Devolution occurs automatically: The asset passes to one of the owners that survives without going through the favourable legal process.
  • Ease of use: Creating a joint ownership is a fairly easy process with very few documents needed to be filled out.

Disadvantages:

  • Risk of disputes: If the surviving owner doesn’t take into account the intentions of the deceased, differences may arise.
  • Loss of control: The moment a piece of property is tendered out as a joint ownership, selling or refinancing cannot take place unless the co-owner signs the dotted line.
  1. Payable-on-Death (POD) Accounts

You can name beneficiaries on some financial accounts, including bank accounts and/or retirement accounts through payable-on-death (POD) accounts. However, the moment you die, these estates go straight to the beneficiaries listed in the account with no interference made by probate procedures.

Advantages:

  • Ease of setup: By merely reversing it to simply mentioning the beneficiary on the account form, there will be no need for a probate.
  • Control: You have absolute dominion over the account whilst you are still living.

Disadvantages:

  • Limited to specific assets: It is only customized on particular accounts and hence it will not be applied on properties or movable.
  1. Small Estate Affidavits

There is a small estate procedure provided within the state of New Jersey for estates that are worth below certain amounts. For estates without real property, the amount stands about $20,000.This is simple and allows heirs to file an affidavit in the court and transfer property without the need of going through a full probate process. This is ideal for less valued estates.

Advantages:

  • Simple and cheap: There is a fast method of settling small estates.

Disadvantages:

  • Limited in application: It is only applicable to the estate that meets the values thresholds.

With all these in mind, what are the consequences of going for probate avoidance?

Pros of Avoiding Probate

  • Avoid court processes and associated expenses: Your heirs are saved from the court time and costs they have to incur by using probate strategies.
  • Avoid making the distribution of your estate public: The manner in which your estate will be shared with its beneficiaries will not be made public since it will not leave private deeds.
  • Less anxiety: It helps in making life easier for family members who are left to distribute the estate upon death.

Cons of Avoiding Probate

  • Set up expenditure: Some of the techniques for avoidance of probate include living trusts, but these involve high initial costs and are cumbersome to establish.
  • Ongoing management: Trusts and other strategies require careful planning and attention to ensure assets are properly transferred.
  • Some conflicts may occur: Legal assistance sometimes in the distribution of estates whereby there are conflicts among beneficiaries, and this may lead to legal redress.

Can You Avoid Probate?

There are times when avoiding probate is helpful, but there are cases when having to avoid probate is not that relevant, or necessary. Therefore, the probate process in New Jersey can be rather simple and inexpensive for the smaller estates. One additional aspect to consider is that if your assets are neatly organized and your estate plans are lucid enough, probates may not pose too much of a problem to your descendants.

On the other hand, if your probate estate, or assets, are significant and the family or the heirs are rather complicated or if you are very concerned about privacy, then looking into expenses that do suggest or allow for probate avoidance probably can help relieve your worries and also protect your family or loved ones from financial burden.

Get Help from New Jersey Probate Experts

Every individual who has to undertake probate understands that it is very tough and rulers should avoid any unnecessary undertaking in their plan. NJ Probate Experts is dedicated to providing considerate and reassuring probate services in all corners of New Jersey. As certified professionals in the field of probate, we will support you through each component of the procedure of probate guaranteeing comfort. Be it strategies to avoid probate or simply the need of resolving a complex probate case, our skillful assistance will come to clear the clouds, when it seems the cloud of confusion is about to encompass you.

With NJ Probate Experts, you are choosing a company that will employ its efforts to bring resolution on your behalf in a professional manner and provide you with quality Probate services.