A living trust in New Jersey refers to a situation where legal title to property or multiple pieces of property are held by a trustee for someone else’s benefit. This “someone else” is known as your beneficiary, and establishing a living trust can afford several benefits to this individual or group of individuals.
The most popular reason for establishing a living trust has to do with avoiding probate proceedings, which can be time-consuming and laden with court-specific rules. This is not the only advantage to setting up a living trust, though.
If you own property in more than one state, creating a living trust is very wise. This is because each state would require its own probate proceedings to take place, known as ancillary probate. If the property is instead placed in a living trust rather than simply being mentioned in your will, this property can skip the probate process.
Finally, privacy is another key reason that people in New Jersey elect to use a living trust as a fundamental element of estate planning. Probate can be very public and many people do not want the details of their estates to be shared in this manner. While probate is a matter of public record, the details of your living trust are instead confidential. This helps to shield your beneficiaries as well. While their identities would be public with a will or probated estate, a living trust gives you the privacy that you and your beneficiaries might prefer.
As you can see, there are several critical benefits that are afforded by the simple process of setting up a living trust. If you are concerned about the time and expense of probate, managing property in multiple states, or privacy, a living trust is helpful.