Freehold Wills, Trusts, Estate Lawyers

It is never too early to start planning for your future, whether you have substantial wealth and property or more modest assets. Estate planning allows you to ensure that your property is distributed according to your wishes and that your loved ones are provided for if you die or become incapacitated. A well-crafted estate plan also allows you to make important healthcare decisions that will impact you and your family.

If you have questions or concerns about the estate planning process, or you would like assistance with wills, trusts, or any other aspect of estate planning, it is highly recommended that you contact the experienced Freehold will, trusts, and estate lawyers at Lyons & Associates, P.C.

What Is a Will?

Also known as a “last will and testament,” a will is a legal document specifying how you would like your estate handled when you die. In addition to addressing how you would like your assets and property distributed, including people and organizations you would like to be named as beneficiaries, a will also allows you to address other important issues, like naming a guardian for your children if they are under the age of 18 and the other parent is either unwilling or unable to care for the children. You can also name an executor, who will manage your affairs, determine who will inherit your property, including any outstanding debts and taxes, and ensure that your assets are properly distributed to your beneficiaries. A simple will is the most common type of will and will likely meet your needs if the following statements apply:

  • You are under the age of 50.
  • You are in good overall health.
  • You do not have assets worth several million dollars.
  • It is unlikely that you will owe estate taxes after you die.
  • You are not concerned about the expenses and delays associated with the probate process.

What Is Required for a Will to Be Valid?

A will is a legal document, which means that there are a range of requirements that must be met for the will to be valid, including the following:

  • You must be 18 years of age or older.
  • You must be of sound mind and understand your assets and who will inherit your property.
  • You must sign and date the document, and at least two witnesses must be present to watch you sign the will. 
  • The two witnesses must also sign the will.
  • You can have the will notarized, although this is not legally required. However, getting the document notarized or making a notarized self-proving affidavit that accompanies the will can simplify the probate process.
  • Your will must go through the probate process, which involves validating the will, appointing an executor, identifying assets, paying debts, distributing assets, and filing tax returns. This can be time-consuming, and your family members will not have access to your assets until the probate process is complete.

Can I Make Changes to My Will?

You can revoke or make changes to a will at any time. You have two options if you want to change the will after you and your witness have signed the document. Making a codicil may be the best option if you only want to make minor changes. To create a codicil, write down what you want to add or remove from the existing will, sign it, and have two witnesses sign it as you did with the original will. Often, however, it makes more sense to revoke the old will and create a new one. This will eliminate any confusion that a codicil may cause.

What Is a Trust?

A trust is another estate planning tool that allows you to distribute your property to a family member or a charitable organization while you are still alive. An express trust allows you to transfer property to a trustee, who will distribute the trust property to a beneficiary according to the terms of the trust. The following are the essential components of an express trust:

  • The settlor: Also known as the grantor or trustor, this person creates the trust and transfers the trust property.
  • Trust property: This is any type of property that may serve as trust property, including real, personal, tangible, or intangible.
  • The trustee: This person maintains the trust property and distributes the property according to the terms of the trust. This person protects the trust property, invests responsibly, and makes proper decisions.
  • The beneficiary: This is the individual who benefits from the trust property. This can be a person, a group of people, an organization, or even a pet.
  • Trust purpose: A trust must have a legal purpose. In most cases, trusts are created to provide financial support, education, asset protection, tax planning, or charitable organization contributions.

There are several different types of express trusts, including the following:

  • Living trust: Also known as an inter vivos trust, this is created for the benefit of another while you are still alive.
  • Testamentary trust: This trust is created as a part of a last will and testament. The property is transferred to the trust upon your death.
  • Revocable trust: This type of trust allows you to change the trust or revoke the trust at any time while you are still alive.
  • Irrevocable trust: This allows you to transfer assets from your estate to a beneficiary. However, once the trust has been established, you may not revoke or make changes to the trust.
  • Fixed trust: The trust beneficiaries will receive the property based on a specific schedule you have set forth.
  • Discretionary trust: This gives the trustee the power to make decisions about how property should be distributed to beneficiaries. Beneficiaries may receive tax benefits since they have no interest in trust assets until they are distributed.

What Are the Differences Between a Will and a Trust?

If you are starting the estate planning process, there are some key differences between a will and a trust that you should be aware of, including the following:

  • Probate: The probate process can be time-consuming and expensive. A will must go through the probate process to validate the document and ensure that the assets are distributed to the beneficiaries. However, a trust is owned by the trust and managed by the trustee, so it does not need to go through the probate process. That means that the assets are distributed more quickly.
  • Privacy: A will becomes a public record during the probate process, meaning anyone can access information about your assets, beneficiaries, and debts. In most cases, the trust administration process is not a matter of public record, so there is greater privacy.
  • Flexibility: While a will can offer a more straightforward option for determining how your assets should be distributed after you die, it may not provide the flexibility you need if you have more complex estate planning needs. A trust offers more flexibility because you have greater control over asset distribution, allowing you to specify how and when your assets should be distributed to beneficiaries.
  • Effectiveness for certain situations: If your total assets are under $1 million, you do not require complicated controls or provisions when distributing the estate, and you do not have concerns about the probate process, a will is generally a good option. However, if you have assets over $4 million, own multiple properties, and want to keep your estate’s details private, a trust is highly recommended. A trust will also minimize estate taxes and inheritance taxes for your beneficiaries.

The Freehold Wills, Trusts, and Estate Lawyers at Lyons & Associates, P.C. Help Clients Navigate the Estate Planning Process

If you have questions about the estate planning process, including how to set up a will or a trust, do not hesitate to contact the Freehold wills, trusts, and estate lawyers at Lyons & Associates, P.C. We will discuss your estate planning goals, address all of your questions and concerns, and assist you with every step of the estate planning process. To schedule a free consultation, call us today at 908-575-9777 or contact us online. Our offices are located in Somerville, Morristown, and Freehold, New Jersey, where we serve clients in Somerset, Woodbridge, Morristown, Parsippany, Rockaway, Short Hills, Chatham, Randolph, Madison, Morris Plains, and Monmouth County.