Need an Estate Planning Lawyer in Paterson, New Jersey?

Something unexpected could happen to anyone, which is why it is important to have a comprehensive estate plan in place. Estate planning ensures that your family and loved ones are taken care of if you  pass away.

An estate planning lawyer at Rosenblum Law, with offices in New Jersey and New York, can help with crafting an effective estate plan that will preserve generational wealth and ensure assets go to your intended beneficiaries.

What is Estate Planning?

An estate plan consists of a variety of legal documents and financial instruments that provide guidance on how someone’s assets are to be distributed after they pass away. Some key components in a comprehensive estate plan can include a will, trust, power of attorney, and more. 

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

Everyone is different and will have varying requirements when it comes to estate planning. A knowledgeable estate planning attorney can provide valuable assistance in customizing someone’s estate plan to fit their specific circumstances and objectives. Among other things, an attorney can:

Draft and Review Documents

A lawyer can assist in drafting and reviewing estate planning documents to ensure that their client’s generational wealth objectives are met. This includes crafting a will, trust, powers of attorney, and other legal documents. The attorney can also ensure that documents and legal instruments comply with state laws.

Minimize Taxes and Legal Fees

One important estate planning objective that everyone should be concerned with is minimizing tax liabilities and legal fees. A competent estate planning attorney incorporates strategies for reducing estate taxes, capital gains taxes, and probate costs while also maximizing asset protection.

Update and Maintain Estate Plans

Changing life circumstances can call for minor or major changes to an estate plan. This is why it is important to have an estate planning attorney regularly review and update the plan in order to reflect these changes. It is also essential to adjust an estate plan in light of any new laws and regulations.

Navigate Complex Family Dynamics

Many people’s circumstances can be more complicated in regards to estate planning, particularly those with complex family dynamics. An experienced estate planning attorney will be able to address blended families, special needs, and other challenging situations. A lawyer can even mediate disputes and facilitate discussions between family members.

Key Elements of Estate Planning in Patterson, New Jersey

There are several key elements that most comprehensive estate plans should include. These are essential legal documents and financial instruments that ensure that one’s estate planning objectives will be achieved. 

Wills and Trusts

Usually a comprehensive estate plan will include either a will or trust as its central legal document. A will outlines someone’s desired outcome of asset distribution to beneficiaries. It also directs how they wish family and loved ones to be cared for. 

A trust is similar to a will in that it is designed to ensure proper distribution of someone’s assets. However, a trust creates a separate legal entity that appoints another party to hold title to property in order to manage and maintain the assets held in trust for the benefit of intended heirs. The entity in control of the trust assets, known as the trustee, can be an individual or a business entity such as a financial management corporation.

There are various advantages and disadvantages to consider when deciding whether to use a trust or a will in an estate plan. Each option has benefits and drawbacks. Usually wills are less costly to hire a legal professional to draft. On the other hand, trusts tend to be more efficient in distributing assets due to being able to avoid the probate process. 

Power of Attorney

A power of attorney is a legal instrument that authorizes an individual to act on someone else’s behalf if that person is  incapacitated for some reason. This legal instrument can grant authority that is limited or broad. A power of attorney can pertain to areas such as property, financial investments, or healthcare. 

When enacting a power of attorney, one of the most important decisions is choosing the individual to grant authorization to act on another’s behalf. This person is known as the agent, while the person granting authorization is referred to as the principal. Some aspects to consider when choosing an agent are any required knowledge of finance or the principal’s healthcare needs, as well as overall trustworthiness and responsibility. The agent should also have a good understanding of the principal’s financial objectives.

Healthcare Directives

There are various types of legal instruments that can predetermine how medical decisions are enacted if someone is unable to make decisions for themselves. These legal instruments are referred to as healthcare directives. 

A medical power of attorney is one of the most common types of healthcare directives. The individual named as the agent in a healthcare power of attorney is known as a healthcare proxy. The healthcare proxy is tasked with making medical decisions on the principal’s behalf if the principal is incapacitated.

A living will is another form of healthcare directive. This document spells out specifically what types of medical procedures someone does or does not wish to be used in order to save their life. Some types of medical procedures that may be addressed by a living can include cardiopulmonary resuscitation (CPR), mechanical ventilation, dialysis, tube-feeding, organ and tissue transplantation, and more. 

Guardianship Designations

One important consideration in estate planning is how to deal with any minor children someone is responsible for if they pass away or become incapacitated. Including a guardianship designation within an estate plan authorizes a chosen individual to become the legal guardian of minor children. 

Naming a guardian for minor children is a highly consequential decision that should not be taken lightly. Not only should the chosen guardian be somebody deemed trustworthy, but the designated individual must meet the following legal requirements:

• Be legally an adult
• Be physical ability to fulfill responsibilities to care for the minor child
• Have necessary time to properly care for the minor child
• Have the financial means to care for the minor child

Beneficiary designations

It is also necessary to ensure that financial accounts have the correct beneficiaries designated. This can include retirement accounts, bank accounts, investment accounts, life insurance, and others. Ensuring financial account designations correlate with a will or trust will help one’s heirs avoid having to navigate a contested probate process.

Common Estate Planning Mistakes and How to Avoid Them

The following are some of the most common estate planning mistakes people make:

• Failure to plan: The worst mistake someone can make is not to have an estate plan at all. This can result in their heirs facing a contentious legal battle in probate court.
• Outdated documents: Neglecting to update various estate planning documents to reflect a change in circumstances, such as a divorce or remarriage, can be problematic.
• Improper beneficiary designations: Not making sure all financial accounts have the correct beneficiary designations may mean the funds in those accounts will not go to intended heirs.
• Ignoring tax implications: Failing to take into account tax consequences when planning one’s estate is a mistake that could unnecessarily cost beneficiaries.

FAQs

Contact Rosenblum Law Today

Failing to have an effective estate plan in place can result in your intended beneficiaries not being able to receive your assets without going through a lengthy probate process. This is why you need to work with an experienced estate planning lawyer in crafting a comprehensive estate plan. Rosenblum Law has the best estate planning attorneys serving Paterson, New Jersey. Call now to set up your initial consultation.