Estate planning can be a complex and emotionally difficult affair, but the proper guidance can make all the difference. The Newark estate law attorneys at The Jayson Law Group want to help you secure your future and the future of your loved ones when devising your estate plan. We have outline a few simple pointers and explanations regarding wills and trusts in the state of New Jersey to help you effectively draft your estate plan for your family’s future.

What is a Will?

A will is a legally enforceable written document that decides the ownership of your property upon your death. A will also appoints your legal representative, known as an executor, to carry out your wishes.

What is a Trust?

A trust is a legal arrangement through which a person or entity called a “trustee” holds legal title to property or income for another person, called a “beneficiary.”

How are they Different?

A will is only effective upon death of the signer, whereas most trusts becomes effective as soon as you create them. In addition, a will only covers property in one person’s name; any property in joint tenancy is not covered. A trust covers all property put in the name of the trust.

If you are concerned about how all of your assets are going to be distributed after you die, or how much tax your heirs will inherit, you will want to look into a trust.  Furthermore, property in a trust can pass to its beneficiaries outside of a will so that the property in the trust does not need to go through probate.

A trust cannot replace a will; everyone should have a will. A will can provide back-up protection for any asset that does not make it into the trust. Most trusts only deal with specific assets, such as life insurance or a piece of property, while a will governs the distribution of nearly everything else in your estate.

About Both

If you do not have a will or a trust, your property will be transferred to your closest living relatives as determined by New Jersey state law.  This is why estate planning is important, it allows you to dictate where you assets and belonging go and who will be inheriting them.

Both trusts and wills and trusts need to be updated with new property is acquired or to change beneficiaries or investments. Consult your Newark business lawyer every few years to make sure that your  estate plan including any trust(s) and/or will stays up-to-date.

Our and estate attorneys can help you plan for your future and protect your loved ones. Email or call us today at (908) 258-0621 to find out more about our estate planning services.