21 Jan My kids are fighting about being my executor. What should I do?

Q. I know people use different kinds of trusts. I don’t have any but I don’t know if I even need one. I have my house, no mortgage. My kids are grown and my wife has passed. I have an IRA and also a brokerage account, plus some savings accounts.
— Considering options

A. We’re glad you asked.

Trusts are useful for a number of purposes.

Reasons to have a trust include to avoid probate in the event of the death of the settler of the trust, to arrange for interests for beneficiaries who may have creditor problems, and in some cases to save estate taxes, said Steven Holt, partner and chair of the tax law, trusts and estates practices with Mandelbaum Barrett PC in Roseland.

“Since New Jersey has no estate tax and since the federal exemption from estate tax for a single person is $13.99 million, there is really no need to use a trust for estate tax savings purposes, if the value of the estate is less than that amount,” Holt said.

Furthermore, probate in New Jersey is uncomplicated unlike in other states, and so trusts are not generally used in New Jersey to avoid probate, he said.

“The other important use for trusts is to set aside assets for a disabled person who needs to have a third party manage the assets for his or her benefit,” Holt noted.

Consider meeting with an estate planning attorney who can look at the specifics of your personal situation before advising what, if any, trust is right for you.

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This story was originally published in January 2025. 

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.