New Jersey adults of all ages should think about having some basic estate planning documents in place. Even people who are in their 20s may benefit by drafting these documents because unexpected accidents or illnesses can occur. There are several types of estate planning tools that can offer protection in the event that people become incapacitated and are unable to make financial decisions for themselves either temporarily or permanently.
When New Jersey residents are making their estate plans, they may not include what they want their final arrangements to be. Traditionally, the final arrangements were included in a person's will. However, those who have specific desires should prepare a funeral planning declaration.
Many entrepreneurs in Hunterdon County rely in large part on the income of their businesses. Since this income is responsible for sheltering the family, feeding them and providing a consistent standard of living, protecting the business is a necessity that shouldn't be overlooked in estate planning. However, a survey of entrepreneurs found that few had engaged in even the basics of protecting their business interests.
An irrevocable trust may be an effective estate planning tool for New Jersey residents. It is called an irrevocable trust because the terms cannot be changed once the trust has been create. An individual may either create such a trust during his or her lifetime or use provisions in a will to create one upon death.
People in New Jersey who live with a partner but are not married could risk losing their shared assets if the partner dies. Furthermore, unmarried partners legally do not have a right to make medical decisions on behalf of each other. However, creating an estate plan can help solve these problems.
New Jersey residents who get married for the second time should be aware of the estate planning and financial issues that can arise. The complications that are created by blended families can easily get out of hand.
New Jersey residents may be familiar with a non-legal estate planning document known as a Letter of Final Wishes. This document provides a way for the testator to express their wishes pertaining to important personal issues not stated in the will. When writing an LFW, it is recommended that the testator arrange it into several different sections.
When New Jersey residents get older, they should strongly consider having powers of attorney created. Powers of attorney provide trusted individuals the ability to make financial choices for another person in their stead. Depending on how a document is drafted, a trusted individual, called the agent, may be able to pay someone's bills, sell their property or purchase food and other necessities for them.
Ideally, New Jersey residents should have estate plans in place to ensure that their final wishes will be carried out. A basic plan may include a will, a living trust and powers of attorney. However, it is important that an estate plan is constructed properly to avoid a myriad of issues that could make it harder to comply with its terms.
Most New Jersey residents know the importance of estate planning. However, a study shows that nearly 60 percent of U.S. adults do not have a will in place.