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.
Estate planning is an important matter for all adults in New Jersey. While most people associate the need for an estate plan with being older, a recent survey by Wells Fargo shows that around 40 percent of Americans who are 60 or older haven't taken the time to create an estate plan. This is troubling because not having an estate plan leaves loved ones unprepared for when the person passes away.
There are many different types of trusts New Jersey residents can use to protect their financial legacy and limit how much their estate may be taxed. However, it is important that in addition to choosing the right type of trust, they also designate the right person to administer the trusts.
People in New Jersey should create an estate planning checklist to ensure that they have everything they need in their estate plan. While estate planning provides individuals the opportunity to get ready for the unavoidable, it also allows them to dictate what should happen to their financial assets after they die. If their estate plan is not structured as it should be, surviving loved ones may encounter difficulties with the estate.
When people in New Jersey are creating an estate plan, they may want to use a living trust. A living trust allows a person to keep control of assets after placing them in the trust. Married people may place assets in a trust and name one another as co-trustees. With a trust, assets do not go through the public process of probate and can be distributed to beneficiaries without delay.
One of the estate planning mistakes that many New Jersey residents make is not using a trust to hold assets for their adult children. Trusts can be particularly helpful if an adult child has unhealthy spending habits.
Some New Jersey residents who are creating an estate plan might wonder if they should take steps to avoid probate. There are advantages and disadvantages to the probate process, and a person should consider them carefully before deciding how to set up the estate plan.