One thing all New Jersey residents with significant assets should concern their selves with is estate planning. If you don’t, your wishes for who will receive your inheritance may go unfulfilled after your death. While you may want to live forever, planning your estate as early as possible is always best.
The probate process
After a person with property and assets dies, a legal process known as probate begins. This process usually takes two distinct paths. If a will and last testament was created during estate planning, the estate of the deceased would be administered according to the deceased’s ‘wishes outlined in the will. If a will does not exist, who ends up with what property in the estate will be hashed out in court. The result in court may not be what the deceased wished for.
Considerations for the children of the deceased
In many cases, the estate’s primary beneficiaries will be the deceased’s children. If you wish to have your children’s inheritance allotted in a certain way, consider the following when planning your estate:
- Placing the assets into a protected trust
- 401k plans or Roth IRAs
- Life insurance
- Rules for when and how funds can be withdrawn
- Income you need for your retirement
- Possible future healthcare costs you will have
- Who will benefit from certain assets the most
- The maturity level of your children
- Tax issues regarding the inheritance
- Investment options for the funds
Overall, thorough estate planning is the only way to ensure that specific children get what you want them to have. Many different things must be considered including the age of your children and when they would be ready to receive your assets to more technical matters like taxes, interest rates and paperwork requirements. Give your plan your full attention to ensure that it is complete and reflects your wishes.