Finance and Law

How to Prepare with Estate Planning

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Estate planning is when an individual makes plans for their property after death. An estate is everything that a person owns, such as savings account, retirement accounts, land, houses, cars, clothes, jewelry and cash. People who are doing a retirement plan for the first time can benefit from using a New Jersey estate planning attorney.

Estate planning consists of a variety of goals and objectives. Objectives and goals include:

  • Making sure the majority of the assets are transferred to the beneficiaries
  • Paying the minimum amount of taxes on the property
  • Selecting guardians for any minor children left behind

A Last Will and Testament, installing trusts and naming a Power of Attorney are an essential part of estate planning. Some people think that writing out a will is only for the wealthy. Everyone who has assets should have a plan for their assets after death. If you have a house, a retirement fund, a car, bonds or stocks, then it is in the best interest of your family to see a lawyer.

Benefits

There are many benefits to estate planning. The main benefit is having the authority to designate who will receive the assets. If property is not designated to different family members, then this leads to relatives going to court and fighting over everything.

Planning in advance allows for relatives to pay minimum attorney and court fees when it comes to distributing the property. On the other hand, some people prefer for their property to be given to charity. This is something that can be handled through estate planning.

Legal Help

It is best to get legal advice when making out a Last Will and Testament. A lawyer knows how to put the plan in motion after his client dies and understand the legal process. He is also not bias and will not take sides with the family. Some people are hesitant to use a lawyer because of cost. However, there are alternatives.

New Jersey credit unions provide estate planning programs for clients. The programs involve meeting with lawyers and having legal documents prepared at an affordable price. Some credit unions even offer a loan to assist with the fees due at the time of appointment.

Take Care of Family

Planning in advance is important for individuals that want to take care of their family after they are gone. A lack of income and burial expenses can put a dent in a family’s savings. It is best to prepare in advance to avoid putting a family in financial strain.

Planning allows for your money to grow even in death because of setting up trusts and accounts for children. Advance planning also allows for specifying an age that children have access to the funds. This is a good idea when being afraid that family members are going to be irresponsible with their inheritance. Most people do not like to think about dying or not being able to make their own decisions. However, today is the time to start planning you estate.

Image Credit: 401(K) 2013

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