Wills and Basic Estate Planning

Monmouth County Basic Estate Planning Lawyer

Basic Estate Planning is the process of arranging for the distribution of your assets after your death in a straightforward and effective manner. It allows you to specify how your property, finances, and other possessions will be managed and transferred to your beneficiaries. A well-organized estate plan helps ensure that your wishes are followed, minimizes confusion, and can reduce the burden on your family. Even a basic estate plan typically includes a Will, decisions about guardianship for minor children, and may incorporate a Trust for specific assets. Regardless of your estate’s size or complexity, taking the time to create a simple estate plan can offer peace of mind for you and your loved ones. Valerie Hemhauser, a trusted family lawyer in New Jersey, can guide you through the estate planning process to ensure that your plan is customized to your needs and wishes.

What is a Will?

A Will is a legal document, created and executed in compliance with state laws, that outlines how your assets and property will be distributed upon your death. It also specifies who will be responsible for managing your estate. The person named to handle your estate is known as the Executor. The Executor’s responsibilities include collecting and distributing assets, paying debts, and ensuring that taxes are settled. Additionally, if you have minor children, your Will should appoint a Guardian who will care for them if both you and your spouse pass away before your children reach adulthood.

When Should a Trustee Be Designated in My Will?

A Trust can be established within your Will when you want to set aside certain assets for the benefit of a beneficiary, typically under specific terms. When a Trust is part of your Will, a Trustee is appointed to manage and distribute the assets in accordance with the terms of the Trust. This Trustee ensures that the Trust is administered according to your wishes, which may include managing the funds until the beneficiary reaches a certain age or milestone.

Do All of My Assets Pass Under My Will?

Only assets that are solely in your name are governed by your Will. These are considered probate property. Examples of probate property include bank accounts, stock certificates, and personal belongings such as jewelry and motor vehicles. On the other hand, assets that are held in joint ownership or are designated with specific beneficiaries are classified as non-probate property. Joint property passes directly to the surviving owner, and life insurance policies or retirement accounts are distributed according to the designated beneficiary, bypassing the terms of your Will. Consulting with an experienced estate planning lawyer will help you understand how probate and non-probate assets fit into your estate plan.

How Do Non-Probate Assets Fit Into My Estate Plan?

In estate planning, it’s crucial to coordinate the distribution of non-probate assets with the plan for probate assets. For example, if you want to create a Trust for your spouse in your Will, consider naming the Trustee of that Trust as a beneficiary of your life insurance policy. This way, the life insurance payout will align with the broader estate plan and ensure the non-probate asset is distributed in accordance with your wishes. Proper coordination of all assets, whether probate or non-probate, ensures that your estate plan works cohesively and efficiently.

What Happens If I Die Without a Will?

If you pass away without a Will, your estate will be subject to intestacy laws, which govern the distribution of your assets based on predetermined state laws. These laws may not align with your personal wishes and can result in a distribution plan that you would not have chosen. In addition, the administration of an intestate estate is often more time-consuming and expensive than one that follows a Will. It’s important to note that non-probate assets like joint property and life insurance are not affected by intestacy laws and will pass according to their respective beneficiary designations.

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document that gives someone you trust the authority to act on your behalf in personal, financial, or legal matters. The person you designate as your Agent or Attorney-in-Fact can make decisions or take actions as outlined in the document, even when you are unavailable, incapacitated, or otherwise unable to manage these matters. POAs are commonly used for tasks such as managing finances, signing documents, or handling specific financial or legal affairs on your behalf.

What is a Medical Power of Attorney?

A Medical Power of Attorney (also called a Healthcare Power of Attorney) is a legal document that appoints someone to make medical decisions on your behalf if you become incapacitated and unable to make decisions for yourself. This person, often referred to as a Healthcare Agent, is authorized to communicate with your doctors, review medical records, and decide on medical treatments or procedures based on your wishes. Unlike a standard Power of Attorney, a Medical Power of Attorney specifically deals with healthcare decisions and may be complemented by a Living Will, which provides guidance on your end-of-life preferences. This document can give your loved ones the assurance that important healthcare decisions will be made in accordance with your values, even if you are unable to communicate them yourself.

Valerie Hemhauser is a skilled family lawyer in New Jersey with years of estate planning experience who can assist you in creating a comprehensive and customized plan to ensure that your affairs are handled in accordance with your specific directives. Call our Red Bank office today at (732) 842-9993 or fill out our online contact form for more information.

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