• Supporting Our Clients and the Community During the COVID-19 Pandemic.
    • Skip to primary navigation
    • Skip to main content
    • Skip to primary sidebar
    • Skip to footer
    • Home
    • Our Firm
      • About Our Firm
      • Attorney and Staff Profiles
      • Communities We Serve
        • Bergen County
        • Clifton
        • Essex County
        • Hudson County
        • Hunterdon County
        • Middlesex County
          • Edison
          • Woodbridge
        • Morris County
        • Passaic County
        • Somerset County
          • Hillsborough
          • Warren
        • Sussex County
          • Franklin
        • Union County
          • Plainfield
    • Services
      • Asset & Business Planning
      • Estate And Gift Tax Figures
      • Estate Planning Services
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Planning Services
      • Medicaid and Elder Law
      • SECURE Act
      • Special Needs Planning
      • Trust Administration
    • Webinars
    • Resources
      • Elder Law
        • Elder Law & Medicaid Definitions
        • Elder Law reports
        • Elder Law Resources
          • Plainfield Elder Law
      • Estate Planning
        • Estate Planning Checkup
        • Estate Planning Definitions
        • Incapacity Planning Definitions
        • Is Your Estate Plan Outdated?
        • New Jersey Estate Planning Resources
        • Top 10 Estate and Legacy Planning Techniques
      • Free Estate Planning Worksheet
      • Free Seminars
      • Frequently Asked Questions
        • Business Succession Planning
        • Estate Planning
        • Elder Law
        • Estate Planning for Women
        • Frequently Asked Questions for Families Without an Estate Plan
        • Legacy Wealth Planning
        • LGBTQ Estate Planning
        • Medicaid
        • Trust Administration & Probate
        • Wills and Trusts
      • Newsletters
      • Pre Consultation Form
      • Probate and Trust Administration
        • Bereavement Resources
        • How to Know if You Need Extra Help With Your Grieving
        • Loss of a Loved One
        • Probate Resources
          • Hillsborough Township Probate
          • Plainfield Probate
        • The Mourner’s Bill of Rights
        • Things You Need To Do When a Loved One Passes Away With a Trust
        • Things You Need To Do When a Loved One Passes Away With a Will
        • Trust Administration & Probate Definitions
      • Published Books
    • Reviews
      • Our Reviews
      • Review Us
    • Blog
    • Contact Us

    Augulis Law Firm

    New Jersey Estate Planning Information Center

    Connect with us today(908) 222-8803

    • Attend A Seminar
      • Attend A Webinar
    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram
    Committed to helping New Jersey families preserve and protect their wealth.
    Home » Probate » Probate Administration: Is It Always Required?

    Probate Administration: Is It Always Required?

    August 10, 2016Probate

    probate administrationYou should gain an understanding of the probate process when you are devising your estate plan. This process can enter the picture when your assets are being transferred after you pass away.

    Property that was in your direct personal possession at the time of your passing would become probate property, and it could not be distributed to the heirs until after the estate was probated by the court. In the state of New Jersey, the probate administration process is efficient and streamlined, so it is nothing to fear. At the same time, there are asset transfers that organically take place outside of probate. Let’s look at some of them.

    Joint Tenancy With Right of Survivorship

    When you own property, you have the ability to add a joint tenant. This person would become a co-owner of the property. If you were to add a joint tenant to the title or deed to property that you own, the joint tenant would inherit your portion of the property after your passing. This transfer would not be subject to the probate process.

    Though this can seem like a simple way to facilitate a property transfer, there are some drawbacks to take into consideration. If you add a joint tenant to the title of your property, this person would own half of the property immediately, even while you are living.

    As a result, that portion of the property could be in play if the joint tenant was to run into legal, financial, or tax problems. Plus, you would have to have the cooperation of the joint tenant if you ever wanted to sell the property.

    Payable on Death Accounts

    When you open up an account at a bank or a brokerage, you could add a beneficiary. This is called a transfer on death or payable on death account. While you are living, the beneficiary does not have access to the assets in the account. After you die, the beneficiary that you name would assume ownership of anything that is left in the account. The probate administration process would not come into play.

    Once again, this can sound like a good estate planning solution, but there are limitations that you really do not have to accept when you are planning your estate. One of them is the fact that some institutions do not allow you to add multiple beneficiaries. Those that do will often require equal distributions among the beneficiaries. This may not be consistent with your true wishes.

    Life Insurance Policies

    If you have a life insurance policy on your life, the beneficiary that you name on the policy would be paid by the company after you die, and probate would not be a factor.

    Revocable Living Trust

    There are also some estate planning devices that can be used to transfer property free of the probate process. One of them is the revocable living trust, and this type of trust can be used by a wide variety of people. You do not have to be a multimillionaire to have a revocable living trust.

    You convey assets into the trust, and you can act as the trustee and the beneficiary while you are alive and well. In the trust declaration, you name a successor trustee to take over the role after you are gone, and you name successor beneficiaries.

    After your passing, the trustee would follow instructions that you leave behind in the trust declaration. Assets would be distributed to the beneficiaries in accordance with your wishes, and these distributions would take place outside of probate.

    A major benefit that you would gain if you utilize a living trust is the ability to include spendthrift protections. You could add a spendthrift provision, and the trust would become irrevocable after you pass away. Because of this, there would be a layer of asset protection for the beneficiaries.

    You could also prevent inheritance squandering. The trustee that you name in the trust declaration could be instructed to distribute limited assets to the beneficiaries over an extended period of time.

    Learn More About Probate Administration

    If you would like to learn more about probate administration and many other important estate planning and elder law topics, we are offering some great opportunities during the coming weeks. Our firm is holding a series of seminars, and there is no charge to attend our sessions.

    Though the seminars are free, we do ask that you register in advance so that we can reserve your seat. To obtain further details and registration information, click this link: Warren, NJ Estate Planning Seminars.

     

     

    • Author
    • Recent Posts
    Alan Augulis, Estate Planning Attorney
    Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.
    Latest posts by Alan Augulis, Estate Planning Attorney (see all)
    • Important Subjects to Discuss with Your Estate Planning Attorney - January 23, 2023
    • Planning for the Possibility of Dementia - January 20, 2023
    • How to Prepare for Retirement - January 17, 2023

    About Alan Augulis, Estate Planning Attorney

    Mr. Augulis founded his Warren, New Jersey law firm so that he could focus his practice in the areas of advanced estate planning and tax law. Mr. Augulis has invested considerable time and energy helping to educate others on the topic of estate planning and has become a sought-after speaker in the tax and estate planning arena because of his informative and entertaining seminars.

    Primary Sidebar

    Augulis Law Firm

    Free Estate Planning Worksheet

    There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
    • This field is for validation purposes and should be left unchanged.

    Follow Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram

    Testimonials

    Client Review
    August 4, 2020
        

    Very happy with work. Everything explained clearly and concisely and all my questions were answered completely. Process of putting together plan and review of documents was very organized and easy to understand.

    norm

    Blog Subscription

    • This field is for validation purposes and should be left unchanged.

    Where we are

    Augulis Law Firm
    5 Mountain Blvd. Suite 5
    Warren Twp, NJ 07059
    Phone: (908) 222-8803
    Fax: (908) 222-8815

    See Larger Map Get Directions

    Office Hours

    Monday9:00 AM - 5:00 PM
    Tuesday9:00 AM - 5:00 PM
    Wednesday9:00 AM - 5:00 PM
    Thursday9:00 AM - 5:00 PM
    Friday9:00 AM - 5:00 PM

    Map

    map

    Footer

    • Advantages of Working With Our Firm
    • Disclaimer
    • Privacy Policy
    • Sitemap
    • Contact Us

    Connect with Us

    • Facebook
    • Twitter
    • Linkdin
    • Youtube
    • Instagram
    footer-logo

    Augulis Law Firm
    All Right Reseved.

    Attorney Advertisement

    © 2023 American Academy of Estate Planning Attorneys, Inc.