To accomplish these probate avoidance techniques in New Jersey, let's explore each one in the context of New Jersey laws and applicable federal laws:
1. Set Up Payable-on-Death Accounts (POD)
- Paperwork & Designation: Banks in New Jersey allow you to fill out a form to name a beneficiary for your account.
- Joint Accounts: Adding a POD designation is generally straightforward, even on joint accounts.
- Changing Beneficiaries: You can change your beneficiary designations as needed.
- Claiming the Money: After your death, the beneficiary needs to show proof of identity and your death certificate to access the funds.
2. Name a Beneficiary for Retirement Accounts
- Choosing Beneficiaries: You can designate a beneficiary directly with the institution managing the retirement account.
- Required Minimum Distributions: Governed by federal law, these are mandatory withdrawals from certain retirement accounts after reaching a specific age.
3. Name a Beneficiary for Stocks and Bonds
- Transfer-on-Death Registration: You can register your securities with a TOD designation.
- Government Bonds: Federal laws govern the registration of government bonds and notes.
4. Name a Beneficiary for Vehicles
- Transfer-on-Death Registration: New Jersey does not currently offer TOD registration for vehicles.
- Joint Ownership: Registering a vehicle in joint ownership with the right of survivorship is a common technique.
5. Name a Beneficiary for Real Estate
- TOD Deeds: New Jersey does not recognize Transfer-on-Death deeds for real estate.
- Alternatives: Consider other forms of joint ownership or a living trust.
6. Hold Property in Joint Ownership
- Types of Joint Ownership:
- Joint Tenancy: Includes the right of survivorship.
- Tenancy by the Entirety: For married couples, with survivorship rights.
- Community Property: Not applicable in New Jersey.
7. Create a Living Trust
- Avoiding Probate: A living trust passes property outside of probate.
- Creating a Trust: You need to create a trust document and transfer property to the trust.
- Taxes and Record Keeping: Be aware of any tax implications and maintain proper records.
8. Special Procedures for Small Estates
- Qualifying for Simplified Procedures: New Jersey has specific thresholds for small estate procedures.
- Claiming Assets: Involves using affidavits to claim wages or other assets without going through full probate.
Relevant Laws:
- New Jersey Probate Laws: Govern how estates are handled in the absence of these techniques.
- Federal Tax Laws: Relevant for retirement accounts and other financial instruments.
- New Jersey Motor Vehicle Commission: For rules on vehicle ownership and transfer.
Please consult with a legal professional for specific advice and to ensure compliance with all relevant laws and regulations.