If you recently got married, had a child or bought a home, now is a good time to think about your estate plan. Major life events like these can bring new responsibilities that affect your family, health and finances. As a result, you may need to make decisions about who manages your assets and care if a medical emergency or sudden loss of capacity occurs.
To stay prepared for the unexpected, you can use an estate plan to provide written directions on who will handle your property, medical needs and financial matters when you cannot. In New Jersey, commonly used estate planning tools include a will, a healthcare proxy and a financial power of attorney. Together, these tools can help you stay in control, ease the burden on your loved ones and prevent confusion later on.
It can protect your health care preferences and finances during your lifetime
There is a common misconception that estate plans are only for dividing property after death. However, that is not always the case. In addition to asset transfer, a comprehensive estate plan can include tools that benefit you while you are still alive, but become unable to manage your affairs.
For instance, you can name someone you trust to make medical decisions on your behalf if you become incapacitated through a living will. Meanwhile, with a financial power of attorney, you can assign someone to manage your financial affairs, such as paying bills, handling bank accounts or overseeing your business. Should anything happen to you, these tools help put your health and finances in the hands of people you trust. Your loved ones will also gain the legal authority to act quickly on your behalf when urgent decisions are necessary.
It can be useful even without significant wealth
Even if you do not own significant wealth, you still have important assets to protect. These may include:
- Car
- Bank account
- Home
- Personal items (furniture, jewelry or electronics)
It is essential to decide who manages and inherits these assets, especially when you are no longer able to make decisions for yourself or pass away. If you do not leave instructions, your estate may be distributed through intestate succession, meaning state laws decide who receives your property. That is why having an estate plan is important.
An estate plan can make a big difference
You do not need to go through a complicated process or pay for costly services to create your estate plan. With legal documents, such as a will, power of attorney and healthcare proxy, you can clearly express your wishes and protect yourself and your future.
Additionally, an estate plan can prevent court proceedings that may delay your family from gaining access to your property or enacting medical decisions on your behalf. If you are unsure where to start, you may consider consulting a trusted professional who can guide you through the estate planning process.
