Legal Question in Wills and Trusts in New Jersey
How do we avoid the legal hassle of probate court
I live in California and have two older siblings that live in New Jersey and our mother lives in New Jersey as well and will turn 81 this October. What is the best way for us to avoid the legal hassles of probate, estate taxes and inheritance taxes that will come about if and when the time comes when our mom passes? Would placing one or all of us on the deed of the house by use of a quit claim work?
2 Answers from Attorneys
Re: How do we avoid the legal hassle of probate court
Unlike California (and several other states I can think of) New Jersey probate is an extreemly simple process. There is virtually no contact with the Surrogate's court after the will is probated (in NJ, the original will and death certificate are given to the Surrogate and the executor signs the propate forms....that's about it).
If there are estate taxes to be paid, that's a seperate issue that your mother should really discuss with an estate planning attorney here in NJ. Putting the property into joint names would not change the estate tax implications.
Re: How do we avoid the legal hassle of probate court
YOU DO NOT INDICATE THE APPROXIMATE SIZE OF MOM'S ESTATE OR OF WHAT IT CONSISTS. THESE FACTS CAN EFFECT MY RESPONSE. PROBATE CAN BE AVOIDED (ALTHOUGH NOT COSTLY IN NJ) IF YOUR MOM CREATED A LIVING TRUST AND REGISTERED HER ASSETS IN THE TRUST'S NAME. THIS COULD INCLUDE THE HOUSE. A DEED TRANSFERRING THE HOUSE TO THE SIBLINGS CAN ALSO BE USED, BUT THIS MAY HAVE DIFFERING TAX CONSEQUENCES, DEPENDING ON ITS VALUE AND IF SHE GIFTS IT NOW (THERE ARE POSSIBLE GIFT TAX ISSUES AND INCOME TAX ISSUES WHEN THE HOSUE IS SOLD AFTER SHE DIES). I SUGGEST HAVING HER SITUATION REVIEWED, WITH AN ASSET ANALYSIS, BY A LOCAL ESTATE ATTORNEY, LIKE MYSELF, BEFORE ANY HASTY DECISIONS ARE MADE. THIS IS A RESPONSE TO AN INTERNET QUESTION AND NOT INTENDED TO BE LEGAL ADVICE OR CREATE AN ATTORNEY-CLIENT RELATIONSHIP.