What assets do and do not go through probate in New Jersey?
When a person passes away, their assets are typically distributed through a legal process known as probate. In New Jersey, like in many other states, certain assets go through probate, while others are exempt from this process. Understanding which assets fall into each category is crucial for estate planning and the settlement process.
Assets Subject to Probate in New Jersey
Assets that are subject to probate in New Jersey include:
Real estate solely owned by the deceased
Bank accounts solely in the deceased's name
Investment accounts solely owned by the deceased
Personal property solely owned by the deceased
Legal Code Reference:
New Jersey Statutes - Title 3B: Administration of Estates - Chapter 3: Probate Part 1: General Provisions
Assets Exempt from Probate in New Jersey
Assets that typically do not go through probate in New Jersey include:
Jointly owned property with rights of survivorship
Retirement accounts with designated beneficiaries
Life insurance policies with named beneficiaries
Assets held in a living trust
Legal Code Reference:
New Jersey Statutes - Title 3B: Administration of Estates - Chapter 3: Probate Part 2: Intestate Succession and Wills
Understanding the Probate Process in New Jersey
Probate in New Jersey is overseen by the surrogate's court in the county where the deceased resided. The process typically involves:
Validating the deceased's will, if one exists
Identifying and inventorying the deceased's assets
Paying off debts and taxes owed by the estate
Distributing the remaining assets to beneficiaries
Legal Code Reference:
New Jersey Statutes - Title 3B: Administration of Estates - Chapter 3: Probate Part 3: Administration of Estates
Maximizing Non-Probate Assets for Estate Planning
Given the complexities and potential delays associated with the probate process, individuals in New Jersey may consider maximizing non-probate assets in their estate planning. This can help streamline the distribution of assets and minimize costs and administrative burdens for their loved ones.
Final Considerations for Estate Planning in New Jersey
When planning your estate in New Jersey, it is essential to consult with legal and financial professionals to ensure that your assets are structured in a way that aligns with your wishes and minimizes the impact of probate. By understanding which assets go through probate and which do not, you can create a comprehensive estate plan that protects your legacy and provides for your heirs.
Buried in Work's Additional Resources
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