Some New Jersey residents might hesitate to create estate plans because they think they are not old enough or they do not want to think about the possibility of illness or death. However, it is important for all adults to have an estate plan, and one important element of the process is choosing the right executor.
When individuals who've been financially successful in life pass away without estate plans, their families often squabble about money. While the most famous examples of this involve celebrities, families of small business owners in New Jersey also go through this difficult situation. That's why it's important for owners to construct a legal framework for the distribution of their assets before the unexpected happens.
It's not unusual for individuals in New Jersey who are single, childless or within the 18- to 34-year-old range to fail to realize the importance of estate planning. In fact, nearly 80 percent of millennials admit to not having a will. Younger people may not want to think about unpleasant matters relating to mortality. However, not making an effort to plan in advance can have some unexpected consequences. For instance, passing away without a will means the state will make decisions about asset and property distribution.
It is not unusual for people in New Jersy to consider their mortality. However, ignoring the legal matters that will inevitably arise upon death and the subsequent transfer of the decedent's assets is a mistake that can be costly in more ways than one.
Some New Jersey parents may think their estate planning is complete with paperwork such as powers of attorney and a will that names a guardian for their children. However, while this takes care of things in the longer term, parents may want to think about whether they should make plans for their children over the shorter period of time before the legal guardianship is in place. This may be particularly important if no family is nearby.
The estate planning process can be complex and include a number of documents that enable people in New Jersey to plan for incapacity or death. Developing an estate plan can help people to feel secure about the future and how their loved ones will be provided for. As part of the process, people may be asked to name a number of representatives to act on their behalf.
Young people in New Jersey often fail to consider the necessity of establishing an estate plan, or consider it and determine it's something to be taken care of later. Even if those who are young and have little in the way of assets, though, certain estate planning documents can work to ensure that possessions are distributed properly. Some planning documents can also give direction regarding financial decisions or medical care should the person become incapacitated.
Going through a divorce can be a traumatic experience both emotionally and financially for New Jersey residents. Former couples often seek to put the whole experience behind them once negotiations have been concluded and settlements signed, but failing to take care of estate planning matters before moving on could leave their assets and even their lives in jeopardy. Health care proxies often give spouses the authority to make life-or-death decisions, which is an issue that should be addressed without delay if the divorce was an acrimonious one.
A professionally prepared estate plan may make it easier for family members to settle an estate after a loved one passes away. Although a person could write their own will or complete an online template for a healthcare directive or powers of attorney, having documents that are specific to an individual situation may be more effective when a New Jersey family really needs to use them. The first step is meeting with professionals who have experience helping people plan their estates.
To ensure a smooth asset division process, many New Jersey residents combine a pour-over will with a trust-based estate plan. It is often used when property needs to be transferred into a trust. The proper beneficiaries could be identified using the pour-over will.