“Do I need a will or a trust?” It’s one of the most common questions we hear from clients beginning the estate planning process. The short answer is: it depends on your assets, your family situation, and your goals.
What Is a Will?
A Last Will and Testament is a legal document that instructs how your assets should be distributed after you die. It can also name guardians for minor children and specify your wishes for burial or cremation. In New Jersey, a will must be signed in the presence of two witnesses to be valid.
Importantly, a will does not avoid probate. When you die with a will, your estate still goes through the New Jersey probate process, which is court-supervised, public record, and can take months to complete.
What Is a Trust?
A Revocable Living Trust is a legal entity you create during your lifetime to hold your assets. You transfer ownership of your property into the trust, name yourself as trustee while you’re alive, and designate a successor trustee to manage and distribute assets when you die or become incapacitated. Assets in a trust generally avoid probate entirely.
Key Differences
- Probate: A will goes through probate; a trust generally does not.
- Privacy: Wills become public record; trusts remain private.
- Incapacity: A trust can manage assets if you become incapacitated; a will only takes effect at death.
- Cost and complexity: Trusts cost more to establish upfront but can save significant time and money at death.
- Asset transfers: For a trust to work, you must actually transfer assets into it — a step that’s often forgotten.
Which Is Right for Your New Jersey Family?
For many NJ residents with modest estates and straightforward family situations, a well-drafted will combined with proper beneficiary designations provides adequate protection. For those with larger estates, blended families, or concerns about incapacity, a revocable living trust is often the wiser investment.
In many cases, the best plan includes both: a trust for primary assets and a “pour-over” will to capture anything not already transferred into the trust.
Schedule your estate planning review with Bruno Law Group today.
Call: (201) 720-9972 | Email: info@brunolawgroup.com | Visit: brunolawgroup.com
