Need an Estate Planning Lawyer in Passaic, New Jersey?

The best way to ensure your loved ones are cared for after you pass away is by crafting a comprehensive estate plan with the help of a Rosenblum Law estate planning lawyer. Contact us today for a free consultation, and read this article for more information about the importance of drafting a good estate plan.

What is Estate Planning?

Estate planning is a way to protect and preserve one’s assets in the case of death or incapacitation. This is done through the use of various legal documents and financial instruments that provide guidance on how to deal with one’s personal affairs. Key components of an estate plan often include a will, trust, power of attorney, healthcare directive, and more. 

The Role of an Estate Planning Lawyer in Passaic, New Jersey

An estate planning attorney can play an essential role in designing an effective and comprehensive estate plan in Passaic, New Jersey. The attorney will consult with their client in order to better understand their individual needs and estate planning objectives. The attorney then will customize the estate plan appropriately in the following ways.

Drafting and Reviewing Documents

Having an estate planning attorney draft and review estate planning documents ensures that the documents materially address one’s estate planning goals and meet legal requirements. Some of the documents an attorney can help prepare include wills, trusts, and powers of attorney. 

Minimizing Taxes and Legal Fees

Tax liabilities can diminish estate assets that are intended for beneficiaries. As a result, a good estate planning attorney will design an estate plan that minimizes estate taxes. Creating an estate plan that avoids or shortens the probate process also will help minimize legal fees that beneficiaries have to pay. 

Updating and Maintaining Estate Plan

It is important to continue updating an estate plan to reflect changes in goals and priorities. An estate planning attorney will have the expertise to make these changes when necessary. 

Navigating Complex Family Dynamics

A knowledgeable estate planning attorney will be able to address the dynamics of blended family and other special needs. The attorney can even facilitate family discussions and mediate disputes about estate planning goals. 

Key Elements of Estate Planning in Passaic, New Jersey

An effective estate plan will have one or more of the following types of documents, depending on the situation.

Will or Trust

A comprehensive estate plan has either a will or a trust as its main planning document. A will details how someone wishes their assets to be managed and distributed after their death. It also can include guidance on how to care for certain family members and other loved ones. 

Like a will, a trust is a legal document that aims to make sure someone’s assets are distributed in accordance with their wishes. However, a trust accomplishes this by putting those assets under the management of a separate legal entity called a trust. The trust holds the rights to the assets, and another party called the trustee is appointed to manage the assets for the benefit of the beneficiaries. The person creating the trust is known as the grantor. 

Both wills and trusts have benefits and drawbacks that should be taken into consideration when planning an estate. Generally, wills tend to be less expensive to create. Trusts, although usually more costly, make asset distribution easier because they can help to bypass the probate process. 

Power of Attorney

This is why a comprehensive estate plan should include a power of attorney that legally authorizes another person to make decisions on someone’s behalf if they become unable to make decisions for themselves. A power of attorney can provide limited or broad authority in accordance with one’s preference. This can include authority to act in regards to property, finance, healthcare, or other areas. 

It is essential to choose the right individual to be the agent, or the individual who receives the power of attorney. The agent may be required to have certain types of expertise, depending on the situation. For example, financial knowledge may be required if the power of attorney grants authorization over financial decisions. In addition, the agent should be generally trustworthy and responsible. 

Healthcare Directives

A healthcare power of attorney, known as a “healthcare proxy designation” in New Jersey, authorizes an individual to make medical decisions on someone else’s behalf if they become incapacitated. 

A living will is a legal document that designates which medical procedures should be used to save someone’s life in the case of being incapacitated. This can include mechanical ventilation, cardiopulmonary resuscitation, tissue and organ transplantation, tube-feeding, and other medical procedures.

In New Jersey, these documents are often combined into a healthcare advance directive.

Guardianship Designations

A guardianship designation selects an individual to take legal guardianship of someone’s minor children if the person dies or becomes incapacitated. The chosen guardian needs to be trustworthy and meet the legal requirements for being a minor child’s guardian. In particular, a designated guardian must:

• Have reached legal adult age by the time their duties are required
• Be physically able to care for minor child
• Have enough time to care for the minor child
• Have adequate financial resources to provide for the minor child

Beneficiary Designations

It is not enough to just name beneficiaries in a will or trust; it is also important to specify intended heirs via beneficiary designations on financial accounts. These may include bank accounts, retirement accounts, life insurance, investment accounts, and any other type of financial accounts one wishes to have distributed to intended heirs. 

Common Estate Planning Mistakes and How to Avoid Them

Here are mistakes people commonly make related to estate planning:

• Ignoring tax implications: Someone should take tax consequences into consideration when formulating an estate plan in order to prevent unnecessary costs for heirs. 
• Failure to plan: Neglecting to have an estate plan in place at all can cause intended heirs to be required to deal with a long probate court process.
• Outdated documents: As stated earlier, it is important to regularly update one’s estate plan to address changing life circumstances, such as marriage or divorce.
• Improper beneficiary designations: Financial accounts need to be updated with accurate beneficiary designations in order to avoid major issues for intended heirs in the future.

FAQs

Contact Rosenblum Law Today

Without an estate plan that is effective and comprehensive, you run the risk of your assets not being distributed according to your wishes upon your death. It is important that you seek the guidance of a knowledgeable estate planning attorney. Rosenblum Law attorneys can customize a comprehensive estate plan that fits your specific needs in Passaic, New Jersey. Contact us now to get started.