Revocable Trusts vs. Wills in NY & NJ: Which Is Right for You?
When planning your estate in New York or New Jersey, choosing between a revocable living trust and a will can significantly impact how your assets are managed and distributed. While both tools serve to transfer property upon death, they differ in terms of privacy, probate, flexibility, and cost. Understanding these distinctions is essential for making an informed decision that aligns with your goals and family dynamics.
At Steketee Law Firm, our New York and New Jersey estate planning attorneys are ready to help you handle all of the tools at your disposal. We can create a customized plan that best fits your needs.
What Is a Will?
A will is a legal document that outlines how your assets should be distributed after your death. It also allows you to name guardians for minor children and designate an executor to manage your estate. In both NY and NJ, wills must go through probate, a court-supervised process that validates the document and oversees asset distribution.
Key Features of a Will
- Probate Required: Assets pass through the Surrogate’s Court (NY) or the Probate Court (NJ).
- Public Record: Probate proceedings are generally public, meaning your estate details may be accessible.
- Simple Setup: Wills are easy to understand and distribute assets upon the death of the maker.
- Guardianship Designation: Only a will can name guardians for minor children.
What Is a Revocable Living Trust?
A revocable living trust is a legal entity you create during your lifetime to hold and manage assets. You serve as the trustee while alive, retaining full control. Upon death or incapacity, a successor trustee takes over, distributing assets according to the trust terms without court involvement.
Key Features of a Revocable Trust
- Avoids Probate: Assets held in the trust bypass probate, streamlining distribution.
- Privacy Preserved: Trusts are not part of the public record.
- Continuity of Management: Enables seamless asset management if you become incapacitated.
- Flexible and Amendable: You can modify or revoke the trust at any time.
NY & NJ Probate Considerations
In New York, probate can be time-consuming and costly, especially in complex estates or when disputes arise. The Surrogate’s Court oversees the process, which may take several months to over a year. In New Jersey, probate is generally more streamlined, but still involves court filings, notices, and potential delays.
Avoiding probate through a revocable trust can be particularly beneficial in NY, where court congestion and procedural requirements may slow down estate administration. To learn more about how to do this, you should consult with an estate planning lawyer that practices in your jurisdiction.
Consider a revocable trust if:
- You own property in multiple states.
- You want to avoid probate delays and costs.
- You prefer privacy in your estate affairs.
- You seek continuity in asset management during incapacity.
Consider a will if:
- Your estate is modest and straightforward.
- You need to name guardians for minor children.
- You are comfortable with the probate process.
- You want a lower upfront cost.
Cost Comparison
- Wills: Are typically quicker and easier to draft, , but may incur higher costs later due to probate fees, court costs, and attorney involvement.
- Revocable Trusts: Higher upfront cost to establish and fund, but may reduce long-term expenses by avoiding probate and minimizing delays.
Get the Help You Need from a Qualified Estate Planning Lawyer
Both wills and revocable trusts are valuable estate planning tools in NY and NJ. Many individuals benefit from using both, a trust to manage and distribute assets efficiently, and a will to address guardianship and any assets not titled in the trust. Consulting with an experienced estate planning attorney in your jurisdiction ensures your documents comply with state laws and reflect your unique goals.
Our team at Steketee Law Firm can provide you the legal guidance you need for your estate plan. Contact us today for a consultation.