Most adults benefit from the protections provided by a complete and thoughtfully prepared legal and financial strategy. There is no specific one-size-fits-all approach to estate planning, and you can create a plan that is uniquely suited to your needs and objectives. This effort is beneficial for New Jersey adults of all ages, regardless of age, income level and the size of your estate. With a plan in place, you can be certain that your rights and interests are secure in the event of your death or after a medical emergency.
You may not be familiar with what to include in your estate plan or how you can create a strategy that provides you with the right amount of security and protection. You might benefit from learning more about the estate planning process and the terms you will hear along the way. This understanding could help you make decisions that will benefit you long-term.
Preparing to create a strong estate plan
Many people avoid the estate planning process because they find it overwhelming or they are unsure of what they need to do. While it can be intimidating to consider what legal and financial protections you may need long-term, it is critical to not leave yourself or your loved ones exposed to potential risks by not having an estate plan. As you prepare to begin this process, it will be helpful to know the following terms:
- Will — This is the most basic estate planning document. It outlines what you want to happen to your personal property after you pass. You can also name a guardian for your minor children in a will.
- Trust — This is an estate planning tool that allows you to set aside and protect assets for a specific use, such as charitable giving, the care of a minor dependent and other goals.
- Incapacity — This term applies to certain documents used in the event of your incapacitation, including health care power of attorney, living will and more.
These are only a few of the terms that you will benefit from knowing as you begin the estate planning process. An assessment of your specific situation can provide you with important insight as you consider what you may need in the future. As this can be a potentially complex process, you may find it helpful to speak with an experienced professional as you move forward.
