The topic of death is very difficult for some to deal with while others know how important it is to plan for the future. Whether you want to talk about it or not, there are benefits of living trusts and wills in NJ estate planning that you need to know about before making your plans. We will discuss those benefits in today’s post.
A Will is One Option
A will is the first option for people who begin to plan for their passing. A will names someone who will execute your wishes, divide your property among your beneficiaries and will come with court supervision to make sure the executor of the will follows your wishes. A will is subject to probate proceedings and becomes public when you pass.
A Trust is Another Option
The other option in estate planning is to create a trust. A trust is very common to a will because it still manages how your property is divided among your beneficiaries, but you manage the trust while you are still living. The will is not managed until you pass. The trust names a trustee who manages the division of property. You can be the trustee, or it can be someone else you name.
So, which do you choose? Or do you choose both? Many people are beginning to choose both a will and a trust, especially since a trust is not public knowledge. The bottom line here is that you must choose one or the other because if you do not have either, your property will be taken by the state upon your passing.