If you’ve spent any time researching estate planning online, you’ve likely encountered the same advice repeatedly:
“Avoid probate at all costs.”
Many articles, podcasts, and social media posts portray probate as a lengthy, expensive legal battle that every family should go to great lengths to avoid, often suggesting that everyone needs a revocable living trust.
As Elder Law, Tax, Trust and Estate attorneys serving clients throughout New Jersey, New York, and Connecticut, we know that the truth is much more nuanced.
Whether probate is something to avoid depends largely on where you live, what assets you own, and what your goals are.
Probate Is Not the Same in Every State.
Each state has its own probate laws, court procedures, filing requirements, costs, and timelines.
That’s why estate planning should never be based solely on a national article or generic online advice.
New Jersey: Probate Is Often Simpler Than People Expect
Many New Jersey residents are surprised to learn that probate is generally a straightforward administrative process.
When someone dies with a valid Will, the executor typically presents the original Will to the Surrogate’s Court in the county where the decedent resided. In many cases, the process is relatively efficient and allows the executor to begin administering the estate without extensive court involvement.
That doesn’t mean probate is effortless. Executors still have important responsibilities, including gathering assets, paying debts, filing tax returns when required, and distributing inheritances.
But for many families, probate itself is not the obstacle it’s often made out to be.
It is also relatively inexpensive.
In New Jersey, probate filing fees are generally modest and do not increase based on the size of the estate. Unlike some states where court costs or statutory fees can rise significantly as estate values increase, New Jersey’s probate costs are largely fixed, making the process far more affordable for most families.
Additionally, New Jersey no longer imposes an estate tax. While the state still has an inheritance tax that may apply to transfers to certain non-immediate family members, spouses, children, grandchildren, and parents are exempt. For many New Jersey families, this means estate administration can be both straightforward and cost-effective.
New York and Connecticut May Require Different Planning
Clients who own property or reside in New York or Connecticut often face a different planning landscape.
While New York’s probate filing fees are generally reasonable, the process itself can involve greater court oversight, additional procedural requirements, and more administrative complexity than many families experience in New Jersey. New York also has its own estate tax, and estates exceeding the exemption amount may face significant tax consequences.
Connecticut presents another unique planning environment.
Probate costs are generally higher than in New Jersey because court fees are based on the value of the estate rather than a flat filing fee.
Connecticut also has its own estate tax, although only very large estates are currently subject to it.
That doesn’t necessarily mean probate should always be avoided, but it does mean that planning tools such as revocable living trusts may provide meaningful advantages depending on the client’s circumstances.
Trusts Are Powerful, But They’re Not for Everyone
This isn’t an argument against revocable living trusts.
In fact, we regularly recommend them when they help accomplish a client’s objectives.
A properly drafted and funded trust can:
- Simplify estate administration.
- Provide greater privacy.
- Help manage assets during incapacity.
- Reduce the need for court involvement.
- Benefit blended families.
- Provide long-term protection for beneficiaries.
- Coordinate planning for individuals with disabilities or special needs.
But creating a trust simply because someone says “probate is terrible” isn’t always the right answer.
The better question is:
What planning tools best accomplish your family’s goals?
Don’t Forget About Property in Other States
One issue we frequently encounter is clients who own real estate outside their home state.
For example, a New Jersey resident may own:
- A vacation home in Connecticut;
- A condominium in Florida;
- An investment property in New York; or
- A shore home titled differently from other assets.
When real estate is located in another state, your family may have to complete ancillary probate in that jurisdiction.
That means your loved ones could be administering one estate in your home state while also opening a separate probate proceeding where the property is located.
This is particularly important for families who own vacation homes in states like Florida. Although Florida does not impose a state estate tax, ancillary probate there can be significantly more expensive because Florida law permits attorney and personal representative fees that are often calculated as a percentage of the estate’s value. As a result, a relatively modest Florida condominium can add considerable cost and delay to an otherwise straightforward New Jersey estate administration.
Likewise, New York residents who own real estate in another state should remember that ancillary probate is only part of the analysis. Depending on the size of the estate, out-of-state property may still be included when determining whether the New York estate tax applies, making comprehensive planning especially important.
For families with multi-state assets, careful planning today can often save significant time, expense, and stress later.
The Bottom Line
For some clients, a thoughtfully drafted Will is exactly what’s needed. For others, a revocable living trust offers substantial benefits.
The key is receiving advice based on your assets, your family, and the laws of the state where you live and own property, not fear-based messaging suggesting that probate is always a disaster.
Estate planning should be customized to your individual circumstances. For some families, probate in New Jersey may be a relatively simple and affordable process. For others, particularly those with larger estates, beneficiaries in multiple states, or real estate located outside their home state, a trust-based plan may provide significant advantages.
As Elder Law, Tax, Trusts and Estates attorneys practicing throughout New Jersey, New York, and Connecticut, we’ve learned that there is no universal estate planning solution.
The attorneys at Mandelbaum Barrett PC are here to help you understand your options and develop an estate plan that is tailored to your goals, your family, and the states in which you live and own property. Every family’s situation is unique, which is why the right strategy should be based on individual goals rather than a one-size-fits-all approach.