Who needs an estate plan? It is a simple question, and most people assume it has a simple answer. But, while this question does indeed have a simple answer, it is not the answer most people think. Keep reading to learn more from an experienced Trenton estate planning attorney.
3 Reasons Everyone Should Have an Estate Plan
Most people assume that you only need an estate plan once you start to get older. The thinking is that an estate plan addresses what happens when you die, and this is generally only a concern for aging individuals. But, there are a few important reasons why this thinking is flawed—and why everyone should have an estate plan regardless of their age:
1. Estate Planning is About More Than Addressing What Happens When You Die
First, while addressing what happens when you die is a major part of the estate planning process, this is far from all that the estate planning process entails. A key aspect of estate planning is that it should be custom-tailored to each individual’s unique health, family, and financial circumstances. With this in mind, estate plans will commonly address considerations such as:
- Preserving assets during an individual’s lifetime
- Planning for the distribution of an individual’s assets after his or her death
- Using strategic tax planning to lawfully minimize tax liability
- Preserving eligibility for Medicaid and other government benefits
- Maximizing charitable giving (or starting a family foundation)
- Planning for the possibility of incapacity
- Planning for end-of-life care in any scenario
The specific considerations that your estate plan addresses will be unique to you. When you sit down with an experienced Trenton estate planning attorney, your attorney will walk you through the process of making sure you think carefully about everything that matters to you—both now and in the future.
Another key aspect of estate planning is maintaining the flexibility you need to make changes over time. Your estate plan should be enforceable under New Jersey law, but it should not be set in stone. While irrevocable trusts can be effective estate planning tools in a wide variety of circumstances, tools such as wills, living wills, revocable trusts, and powers of attorney can all be modified as your priorities shift or your family grows.
2. Having an Estate Plan Protects Your Loved Ones
Second, having an estate plan protects your loved ones. For example, if you have a family member who relies on Medicaid or other income-based government benefits, giving them a substantial portion of your estate could terminate their eligibility. But, this can be avoided with careful planning—and this is true regardless of the size of your estate. Similarly, if your loved ones could face a substantial tax bill in the future, taking a proactive, comprehensive approach to estate planning can eliminate this risk.
Having an estate plan also protects your loved ones in other ways. For example, let’s say you are involved in a major accident and are unable to communicate your wishes about your medical care. If you haven’t prepared a living will or provided instructions to a chosen family member, this can be a very difficult scenario for everyone involved. Likewise, at the time of your death, if you haven’t designated a personal representative and provided clear instructions for administering your estate, your loved ones will be forced to navigate the probate process without clear guidance.
3. It Is Important to Be Prepared for the Unexpected
Third, it is important to be prepared for the unexpected. We touched on this in our example about being involved in a major accident, but this is just one of many possible scenarios in which your loved ones might need your guidance. By putting an estate plan in place, you can give yourself and your loved ones the peace of mind of knowing that they will know what to do if and when the time comes.
What is Involved in Putting Together an Estate Plan in New Jersey?
So, now that you know why it is important to have an estate plan, what is involved in putting a plan in place? While there are a variety of ways to approach the estate planning process, the process generally involves:
- Meeting with an Estate Planning Attorney – The first step is to sit down with an estate planning attorney. Working with an experienced attorney is important for several reasons. Among them, your attorney can help ensure that you do not overlook any important considerations, and your attorney can help ensure that your estate plan is enforceable under New Jersey law.
- Identifying Your Personal Goals, Wishes, and Needs – After your initial consultation, you will want to spend some time thinking about your personal goals, wishes, and needs. This is critical for ensuring that your estate plan is both comprehensive and custom-tailored.
- Deciding on the Estate Planning Tools to Use – Once you have identified your personal goals, wishes, and needs, your attorney will be able to provide personalized recommendations about the tools to use for your estate plan. As noted above, these may include a will, living will, revocable and irrevocable trusts, and powers of attorney, among others.
- Preparing Your Estate Plan – After selecting the tools you want to use, your attorney will then be able to sit down and prepare your estate plan. Once your attorney has initial drafts, you will then meet with your attorney again to review the drafts, address any additional considerations, and sign everything you need to sign.
- Communicating with Your Loved Ones – Finally, once you have finalized your estate plan, it will be important to communicate with your loved ones. You will want to ensure that each of your loved ones knows the pertinent details of your plan and how to locate it if necessary.
Contact Us to Schedule an Appointment with an Experienced Trenton Estate Planning Attorney
Do you have questions about preparing an estate plan? If so, we invite you to get in touch. Please call 877-435-6371 or contact us online to schedule an appointment with an experienced Trenton estate planning attorney at Helmer, Conley & Kasselman, P.A.