The state of our estate and family after our demise is a matter of concern for all of us. Estate planning enables individuals to make arrangements during their lifetime regarding the management of their estate in the event of incapacitation or death.
There are several components of estate planning that can be difficult to understand without the knowledge of pertinent laws. An estate planning lawyer in New Jersey assists you throughout the legal procedure to ensure that you make the correct decisions to protect your loved ones.
What is a Will?
A will is a legal declaration stating the distribution of your property after your demise. It can also be used to name an executor of the will, take care of the interests of minor children, and provisions for payment of taxes and debts. Without a will, all your assets are distributed based on your state’s intestacy laws that could lead to decisions contrary to your desires and legal hardships for your heirs. A will is only executed after the person dies and goes through probate court.
What are Trusts?
A trust is a fiduciary arrangement involving a third party, the trustee, who is given the right to hold assets on behalf of a beneficiary by the trustee. There are several types of trusts, such as living, testamentary and irrevocable, with their regulations. The trust becomes active when signed by the grantor and will not go through probate court.
What are the Significant Differences?
During the execution of your will, your entire estate becomes a part of public records while a trust is private and allows you to maintain your privacy. A will can also be contested by family members, but in the case of a trust, it is usually not challenged. However, a trust is an expensive and complex legal document that is difficult to modify unless revocable. It also has set conditions regarding the inheritance of the assets. A will’s terms can be revised conveniently with the aid of your lawyer, and it has no such requirements. In the case of minor children, a will enables you to choose guardians for them.
Every individual’s situation is unique, and each component has its advantages. In many cases, people choose to have trust and a will. An experienced attorney can help determine which elements are beneficial for your case and guide you for an effective estate plan that secures the future of your loved ones and relieves your distress.