Probate in New Jersey: Why You Don’t Need to Fear It —and Why a Trust Is Usually Not a Cost Saver

It is wrong, perhaps immoral or possibly unethical, to promote on social media, and otherwise to frighten people in New Jersey, into spending a great deal more money than is needed in estate planning.

For many families, the word “probate” inspires unnecessary concern. People hear stories from other states — particularly California, and places where probate can be slow, expensive, and heavily court-managed — and they assume the same is true in New Jersey.

It isn’t.

In New Jersey, probate is generally a simple, fast, and inexpensive process. In fact, it is so streamlined that, for most families, it simply does not justify the time, expense, and effort associated with creating and funding a revocable living trust to avoid probate. Yet many people are repeatedly told that they “must” establish a trust to avoid probate. For the overwhelming majority of New Jersey families, this advice is misguided, unnecessary, and costly.

Probate in New Jersey Is Not Something to Avoid

Unlike other states where probating a will may involve multiple hearings, court oversight, and large filing fees and costs, the New Jersey Surrogate’s Court handles probate in a straightforward and efficient manner. In many counties, an executor can probate a will in 15 – 20 minutes, sometimes even by mail.

The filing costs are low, typically $100 – $200. The Surrogate issues certificates of authority to appoint an executor promptly. And unless there is a dispute — something no trust can prevent — there is no ongoing court involvement.

Put simply, probate in New Jersey is not the bogeyman people imagine.

A Living Trust Does Not Save Money in New Jersey

Because probate is already inexpensive and straightforward here, a revocable living trust does not provide cost savings for the average family. In fact, creating a trust is usually more, much more, expensive, not less.

A proper trust requires:

• Drafting the trust documents and having them properly witnessed and notarized; and

• Preparing and recording new deeds and having them properly witnessed and notarized; and

• Retitling bank accounts and investments; and

• Coordinating beneficiary designations; and

• Ongoing updates as assets change.

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Most people never finish the funding process, which means their estates require probate anyway — completely defeating the purpose while still incurring the upfront trust costs.

The result? Many families spend thousands of dollars on a trust that provides little or no benefit.

A Trust Is a Planning Tool—Not a Probate Shortcut

It is important to understand what a revocable living trust truly is. It is not a cost-cutting device. It is not a substitute for a will. It is not a guarantee of avoiding conflict.

A trust is a planning tool. It may be valuable in certain situations, such as:

• Owning real estate in multiple states

• Providing long-term protection for children

• Managing assets for a beneficiary with disabilities who receives government benefits

• Creating structured or staggered inheritance

• Addressing complex financial or family circumstances where high wealth makes significate taxes a possible issue

These are targeted, special-circumstance reasons to use a trust — not reasons that apply to the ordinary New Jersey household.

For the majority of families, none of these special needs exist. A well-drafted will, power of attorney, and healthcare directive accomplish nearly everything most people require — without spending thousands of dollars on a trust.

For Most New Jersey Families, There Is Little or No Gain

The bottom line is simple:

For the usual New Jersey family, a revocable living trust is not necessary.

• It does not save money.

• It does not eliminate headaches.

• It often costs more than it is worth.