Estate planning is a great way for New Jersey residents to protect their estate and beneficiaries. If you are considering this route, you should know which documents are most important in an estate plan.
What is estate planning?
Estate planning is an important legal tool that allows you to protect your assets and heirs. It lets you protect your rights regarding how you want your wishes carried out if you are suddenly incapacitated and cannot voice them. Your estate plan also allows you to prepare for your final arrangements, which takes the burden off your loved ones.
What estate planning documents everyone should have?
Many people are under the misconception that all the need to prepare for the future when they are no longer around is a will. While you should definitely include a will as part of your estate plan, it shouldn’t be the only legal document in your possession. Your will can name an executor who will manage your estate upon your death, a guardian for your minor children and beneficiaries who will inherit your assets and property.
A durable power of attorney for finances is an important tool you should include as it lets you name someone to handle your financial affairs. If you fall ill or disabled and are incapacitated, this type of power of attorney ensures that the person named can pay your bills, debts and taxes.
A revocable living trust lets you hold certain assets and property so that they are kept separate from your estate. You can add and remove items from this type of trust during your lifetime to protect them from estate taxes and probate after you pass away. Those assets and property can also more quickly get to your beneficiaries than if they were still part of your estate.
Estate planning is a valuable tool that can protect everyone’s future.