What is the difference between a Will and a Trust in New Jersey?

Understanding the Differences Between a Will and a Trust: Which Document is Right for You?

Should your estate plan rely on a Last Will and Testament or a Trust? The decision on which document is appropriate for you depends on various factors.

While other documents may also be part of your estate plan, this page focuses exclusively on a Last Will vs. a Trust.

How Wills and Trusts Differ and Which is the Better Choice for You

A Last Will and Testament is the most commonly used estate planning document. However, if you want to avoid probate, a Trust may be a better option. A Will must go through probate in New Jersey after your death to be effective, whereas a Trust can be created and funded now.

A fully-funded Trust can eliminate the need for probate because it continues to exist after your death. Any assets titled in the name of your Trust at the time of your passing will pass to your beneficiaries without needing court approval. While some believe that probate is expensive, time-consuming, and difficult to navigate, in New Jersey, the probate process is generally straightforward and cost-effective. Therefore, avoiding probate alone may not justify choosing a Trust over a Will. To learn more about probate in NJ, visit our dedicated NJ probate site.

The Difference Between a Will and a Trust

A Trust can sometimes distribute your estate faster than a Will. Since a Will must undergo probate, your estate may not be distributed to beneficiaries for a period that can range from 6 to 12 months or even longer in extreme cases. This delay can be challenging for surviving spouses and children. In contrast, a Trust can often facilitate distribution within 30 to 60 days after death, as the terms of the Trust do not require court approval, allowing the trustee to settle the estate more quickly. However, it’s worth noting that I have successfully probated a Last Will and closed an estate in less than 6 months from start to finish.

Privacy Considerations

A Trust is a private document, whereas a Last Will becomes a public record once probated, meaning anyone can access it through the County Surrogate. This public record may contain details about your assets, debts, and personal information. While few people may request a copy of your probated Will, privacy can still be a significant concern for many.

So, What Do We Recommend?

Clients frequently ask which is better: a Last Will or a Trust. My response is that it depends on your individual and family circumstances. Sometimes a Will is more suitable, while in other cases, a Trust may provide greater benefits. Although a Trust offers more flexibility, it is also more complex and costly to prepare and maintain, requiring specific actions to be fully effective. Given these considerations, it is essential to consult with an attorney experienced in estate planning to develop a strategy that best suits you and your family.

Talk to Pordy Cavallaro LLP

To discuss which estate planning options are right for you, please contact Pordy Cavallaro LLP today. Our experienced team is here to address your questions and individual situation. Call us at (609) 622-8008 or complete our contact form to get started.