Estate planning in NJ, and general advice

amother

Sat, Mar 04 2023, 11:27 pm

My oldest child just turned 18, and I think we need to re-look at our wills and insurance policies, etc. Our goal would be that if sometihng happened to us, she wouldn't just get all of the insurance $, etc to have access to right away.
I suspect we need to set up a trust and have our insurance policies and retirements plans list that as the beneficiary, and then set up trustees and some rules how/when the $ would be distributed.

I'd love some input from anybody who's done something like this, as well as recommendations for lawyers in NJ who can handle this.

amother

Tomato

Mon, Mar 06 2023, 9:38 am

amother Yellow wrote:

A few thousand dollars.

I am in Los Angeles, California and had a Living Trust, Will as well as the necessary Powers of Attorney done for $1500. I can't imagine that legal fees in the NJ metropolitan area are less.

This also included transferring the Deed to the home to the Living Trust.

In fact, I think it was a bit on the high end but I had gotten a recommendation from someone I trusted and so I decided it was better to pay a bit more.

In your situation, you will need to set up the Living Trust which transfers the assets seamlessly to the beneficiary. In general you would have the surviving spouse inherit through the Trust and then when both of you die, the assets are distributed.

If you have minor children you seem to want to set up what is called a "spendthrift's trust" in which young adults don't inherit the total amount until they reach certain ages - typically there are ages in which a certain percentage is vested. Typically the Trustee has the ability to use the assets for appropriate purposes as well including down payment, tuition or extreme medical expenses.

You need to think about who you want to act as the Financial Trustee of these trusts. If you have minor children you also need to consider who would take care of any minor children. This is sometimes different than the person who is in charge of the finances - I.e. a sibling can take over care of a child but wouldn't be someone who is good with money/

amother

Yellow

Tue, Mar 07 2023, 12:37 am

amother Tomato wrote:

Did your dh also execute a will? If so that's $3,000 right there.

In any case, $1,500 for a will + trust + deed transfer for one person is unheard of in the NY / MJ area. The title company's fee alone is around $500 for the deed transfer (not saying OP needs a deed transfer or a trust, just answering the question as to cost).

amother

Tomato

Tue, Mar 07 2023, 9:38 am

amother Yellow wrote:

I don't know what would be *normal* in the NY/NJ metropolitan area but these items are very easy to do for a lawyer. They are essentially just prepared by a paralegal who just fills in the blanks.

A husband and wife don't add to the cost because you are preparing one Trust document - two wills which just have the same terms and the Powers of Attorney - the Powers of Attorney can easily be prepared without an attorney.

At least where I am located you don't need a title company to transfer a deed to a Trust just as you don't need to change the mortgage. I am not sure why you would need to do so but again not familiar with NJ law. Of course, NY law is a real scam for lawyers since it is one of the few states that requires one to use a lawyer for even the simplest residential home purchase. In most other states, this is handled by the real estate brokers, the title company and the escrow agent with no problems. There is nothing remotely difficult that would require an attorney except in the rarest of situations but not for the general transactions. It is a a keep lawyers employed boondoggle. Very Happy

amother

Yellow

Tue, Mar 07 2023, 2:10 pm

amother Tomato wrote:

In NY and NJ, lawyers do typically charge double for two wills or trusts, even if spouses. And you would need a title company to transfer title. Lawyer fees are not only based on how long it takes to prepare the document but a variety of factors.

amother

Tomato

Tue, Mar 07 2023, 2:16 pm

amother Yellow wrote:

I find that to be ridiculous way of padding a bill.

Unless there is something very unusual about a trust and will, it requires very little time and very minimal legal skills.

There is only one trust for spouses - It is often called the "Cohen Family Trust". Spousal wills are generally just mirror images.

If it requires a title company to transfer the deed in NJ, that is an expense and not a legal fee. At least in California, it is just done by changing the name in the Recorder's Office. This would be a gift to a title company because there is nothing to search and nothing to insure in terms of making sure it is a clean title.

amother

Yellow

Wed, Mar 08 2023, 8:10 pm

amother Tomato wrote:

Some wills are simple, some are complex. Sometimes there's one trust for two spouses, sometimes they each get their own trust. Sometimes a better option than a living trust is a trust under the will, called a testamentary trust. Sometimes spousal wills are mirror wills but not necessarily. It's all fact-dependent.