If you die without an estate plan in New Jersey, your assets will need to be distributed according to the state’s intestacy laws. Your family will need to navigate the probate process, and if you have minor children, you will need to appoint a guardian. Your family could face adverse tax consequences as well. All of these are important reasons to work with an experienced Vineland estate planning attorney to put a plan in place.
Preparing an estate plan serves several important purposes. While many people put off preparing an estate plan, dying without an estate plan leaves your loved ones without the guidance (and formal documentation) they need to carry out your final wishes. It can also force your loved ones to incur additional costs, and, in many cases, the uncertainty that comes from making decisions without guidance can lead to contentious disputes.
These are just some of the reasons why it is important to have a plan in place. Regardless of your age, health, or family and financial circumstances, it will be well worth working with an experienced Vineland estate planning attorney to ensure you have a plan for the future.
5 Consequences of Dying Without an Estate Plan in New Jersey
Let’s say you were to die without an estate plan in New Jersey. What, exactly, would this mean for your family? Here is what will happen in this scenario:
1. New Jersey’s Intestate Succession Laws Will Apply
One of the primary reasons to prepare an estate plan is to specify what will happen to your assets (or your “estate”) after your death. If you do not prepare an estate plan, your estate will be distributed according to New Jersey’s intestacy laws. These laws specify the percentages of an estate that different family members will receive in different circumstances. But it will still be up to your family to decide who gets what.
2. Your Family Will Need to Go Through the Probate Process
Distributing your assets through a revocable trust incorporated into your estate plan allows your family to sidestep the probate process. The probate process is both time-consuming and costly, and there are no guarantees about how the process will go. As a result, helping your loved ones avoid probate is another key reason to prepare a comprehensive estate plan.
3. If You Have Minor Children, Your Family Will Need to Appoint a Guardian
A third reason to prepare a comprehensive estate plan is that if you have minor children, someone will need to care for them after your passing. When preparing an estate plan, you can designate a guardian of your choosing—and you can talk to them about what you want for your children’s future. If you do not choose a guardian for your children, someone else will need to choose a guardian for you.
4. A Judge Will Make Decisions for You
In general, failing to prepare an estate plan means that a judge will need to make decisions on your behalf. The judge will need to make all of the decisions that you could have made when planning your estate. While your family may be able to agree on certain matters, in general, any agreement will still be subject to a judge’s approval.
5. Your Family Could Incur Unnecessary Taxes
Finally, dying without an estate plan can also lead to unnecessary tax liability in some cases. For high-net-worth individuals in particular, tax planning is an important component of the estate planning process. If you leave your family with an unnecessary tax burden, it is generally not something that can be undone.
Planning for Incapacity: Another Important Reason to Have an Estate Plan in Place
While preparing an estate plan protects your family after your death, it can also protect you during your lifetime. For example, another important aspect of the estate planning process is planning for incapacity. In the event that you become incapacitated due to illness or disease and are unable to make decisions on your own, having a plan in place will ensure that your loved ones know your wishes and are not forced to make difficult decisions while guessing what you might have wanted.
When it comes to planning for incapacity, you can either make decisions in advance (as with other aspects of estate planning) or appoint someone to make decisions for you. Here too, you can talk with the person you choose to ensure that he or she has a clear understanding of your goals and wishes.
FAQs: The Importance of Having an Estate Plan in New Jersey
Who will receive my assets if I die without an estate plan in New Jersey?
Under New Jersey’s intestacy laws, a decedent’s spouse and children are generally first in line to receive the decedent’s assets after his or her death. However, depending on the decedent’s family circumstances, the decedent’s parents and siblings may also be entitled to receive a portion of his or her estate.
Why is it important to avoid the probate process?
Probate is a complex process that is governed by New Jersey law. As a result, the process tends to be both time-consuming and expensive, and a decedent’s family members do not have full control over its outcome.
Can I change my estate plan in the future?
Yes, once you put a plan in place, you are free to make changes to your plan as necessary. While it is important to plan ahead as much as possible, your circumstances, needs, and wishes may change over time.
Schedule an Initial Consultation with an Experienced Vineland Estate Planning Attorney
If you would like to speak with a Vineland estate planning attorney about putting a plan in place, we encourage you to get in touch. Please call 877-435-6371 or contact us online to schedule an initial consultation.