Category: Estate Planning

Research shows that Generation Y hopes to plan for retirement online as well as on mobile and they would prefer to do so with all the help they can get. This indicates an important societal shift that could occur as it relates to retirement planning and estate planning. 

Although millennials are typically defined as a generation focused on individuality, many of them recognize that they need assistance managing their finances and planning ahead for retirement. Most millennials are asking for their employer’s help, for example, in selecting the right investments.

Up to 69% of millennials in fact stated in a recent study that they would like to outsource the management of their retirement portfolio. This provides an important connection to the estate planning process as well. Since more millennials are interested in handling things online and easily, it’s an important conversation that needs to incorporate estate planning as well.
While millennials might often fall into the myth of thinking that they do not need estate planning services since they are relatively young and healthy, that is incorrect. Important documents like a power of attorney can help empower millennials to make critical decisions.  

 

There are plenty of times in life when it makes sense to handle things on your own or to avoid spending money that you simply do not have or do not need to spend to accomplish a goal.

 

While there are numerous different examples when it does make sense to avoid hiring a professional to assist you, estate planning is not one of them. Paying a professional to assist you with the estate planning process is a good way to give you peace of mind that all possible questions and concerns have been addressed and to ensure that your estate plan is legally valid and accurate.

 

In the event that you make small mistakes trying to handle things on your own, this might not affect you, but it will most certainly effect your loved ones named in the estate planning document. If you make a mistake, for example, or do not clearly articulate what you intend to happen to your assets, it may be more challenging for your loved ones to interpret this. This also means that there is a good chance that your estate will have to go through the probate process, further complicating an already difficult situation.
Thankfully, sitting down with an experienced professional gives you the peace of mind that comes with knowing that someone has thoroughly reviewed your individual estate plan and has made recommendations for you that help to target the passing on of assets, planning for your estate while you are still alive, determining who will step in as guardian for your minor children and minimizing any potential taxes. Consult with a lawyer now to get the benefit of working with a professional.

There is a good chance that you may pass away with some debts in your name. In fact, a recent study conducted by credit.com, identified that 73% of consumers have outstanding debt that was reported after they passed away. Those consumers carried an average balance of $12,875 in debt not associated with a mortgage. For an individual who had a mortgage, the debt was $61,554. 

More than 220 million consumers had their data crunched for this particular study. Among the 73% of consumers who passed away with debt, approximately 70% of them had credit card balances. The next most frequent kind of debt was a mortgage debt at 37% followed by auto loans, personal loans, and student loans. When you pass away, your debt may still affect the people that you leave behind. Debt belongs to a deceased individual or the deceased person’s estate.

In the event that there are enough assets to cover these debts, creditors are paid and then beneficiaries receive whatever is left afterwards. If there are not enough assets to satisfy debts, then creditors will lose out. There are many different ways that things can get messy in this process. It’s important to consult with an experienced estate planning attorney to understand how debt may influence your estate.

                                                                                                                  

 

Once you know that you need a solid estate plan to help you accomplish your goals, the next step is to conduct an inventory. You have to know what you have and what might be included in your estate before you attend a meeting with your estate planning lawyer. Many people find themselves overwhelmed by the prospect of putting together an estate plan, but the good news is that it does not have to be difficult. 09

Make sure you consider the following in putting together an inventory:

• Recent statements from your brokerage, retirement, and bank accounts
• All liabilities, including your mortgage
• All physical assets like cars and jewelry inside your home
• All your insurance policies, including info on death benefits and cash values
• Reference all the locations of your safety deposit boxes

 

After meeting with your estate planning, you’ll have a better sense of what you need to do in order to make the most of your estate plan. It’s critical that you follow through since your estate plan is only as valuable as the structure and the follow-up you implement. This means that if you have set up a trust, you need to fund it properly. You need to make sure that any property you have mentioned in your estate plan has the right titles, too. These might seem like small steps, but they actually matter a lot if something were to happen to you. Taking the right action now makes it easier to stay on top of the necessary changes in your plan overall, too.

 

Ready to talk about how to make the most of estate planning? Schedule a consultation with a New Jersey estate planning lawyer now to learn more about what you need to know.

Approaching the topic of death is never easy, but it might help to reframe the estate planning process by viewing it as your way to leave behind a legacy and a love note for your family. The truth is that you may get more peace of mind from knowing that you have taken the right steps to protect your loved ones if you were to pass away suddenly. It’s often hard enough for family members to go through the grief process, but that experience can be amplified when your loved ones are unclear about the intentions of your estate planning.

Beyond serving as crucial legal documents, your will and trust documents can help you articulate your individual legacy and to communicate your concern and love for your family members. Unfortunately, most people don’t even realize the challenges that may arise without a will until it’s too late. Witnessing a friend or family member working through the will or other estate conflict can give you a firsthand perspective of all that can fall apart without proper planning.

And yet, people don’t take the necessary steps because they don’t believe it will happen to them or because they assume it’s too complicated. Up to 60% of most adults in the U.S. don’t have a will. When it comes to Millennials, those numbers are even worse: only one in five has a will. A will is the basic cornerstone of the estate planning process, but it does not address what happens if someone becomes incapacitated while they are still alive.

In the event of a sudden disability or an accident that takes you out of commission for making your own decisions for even a short period of time, your power of attorney documents can make things easier for your loved ones by informing them about which person is responsible for making those decisions. A family member seeing you unable to make your own decisions is an emotional process and one that you can make easier by articulating your concerns on paper well in advance. Since your loved ones will have enough to worry about during that time, make the process easier on them by meeting with your estate planning attorney today.

If you ask any Millennial what’s on tap for them in the next several years, there’s a good chance they’ve got a list with all kinds of travel, graduation, debt repayment, and career goals. But one issue that does not come up enough in these “life” to-do lists is estate planning. In fact, since there’s such a perspective that estate planning only makes sense for older or wealthier individuals, estate planning may not be something a younger person considers at all until they are married or expecting their first child. 

One misstep for younger individuals that leads them to believe estate planning is something you only need to worry about in your 50s or 60s is the foundational view that estate planning is only needed when you pass away. That’s a big mistake. Whether it’s naming a guardian for your minor child or having a healthcare directive to enable someone else to make decisions for you if you become unable to do so, estate planning looks at the future, but the future of your life, too. Most people aren’t expecting a disability or accident in the same way they aren’t anticipating their own mortality at a young age.

Just one car accident or medical diagnosis, however, can turn a person’s life upside down without proper planning. It generates unique legal issues and places undue stress on family members struggling to cope with all the changes. In some sense, the Millennial generation is more financially responsible than those in the past, perhaps because many of them are dealing with student loan debt that requires them to be at least aware of their financial situation. Many are interested in self-development and planning for retirement, which makes an excellent opportunity to approach estate planning with an open mind.

If you have questions about the tools and strategies you could use as a Millennial, now is the time to start looking ahead. Contact an experienced New Jersey estate planning lawyer today.

If you realize after the fact that you and your spouse did not have your account set up properly, all of the estate planning that you have done prior to that point may become invalid. If you have a will as well as a trust, bear in mind that nay beneficiary designations you have on separate accounts will override what your trust and your will says.

It is simply not enough to set aside a meeting with an estate planning lawyer to talk over your options and to determine who you want your assets to be passed down to when it’s from your 401(k), IRA or from your life insurance policy. That’s because these companies keep their own records of your beneficiary designations. You’re still eligible to make your own decisions about who should receive these benefits should something happen to you. But all of the good planning in the world associated with your trust and your will can fall apart relatively quickly if you do not have these other elements in place.

Make sure that you set aside time to analyze your beneficiary designations on all of these accounts on an annual basis. It is as simple as contacting the company and identifying your current beneficiaries. In the event that you need to update this material, you can use the forms provided by these companies. Make sure you also provide a copy of this information to keep one for yourself as one to your estate planning attorney. Your estate planning attorney can assist you in putting together a plan that is aligned with your individual needs as well as the beneficiary designations you have listed on these separate accounts.

 

Many younger families put off the process of engaging in estate planning or consulting with an attorney because they think they are too healthy, too young or simply cannot afford it. Others may have trouble thinking about what might happen to their family members if something were to happen to them. This is particularly true of parents of new children. 

While no individual is expecting to pass away while their family is still relatively young, planning for the possibility is responsible and can give you a great deal of peace of mind about what would happen to your family if something happened to you. Some of the most important steps involved in estate planning for a young family include:

• Naming a guardian for your minor children
• Naming a trustee or executor for your estate
• Naming someone to manage your children’s inheritance
• Outlining instructions for the distributions of your assets
• Planning for disability
• Reviewing your insurance needs
• Having a plan in place that can be adjusted based on your individual concerns and needs

Consulting with a knowledgeable estate planning attorney will give you a place to turn when you have questions and ensure that you have an estate plan that is evolving with relevant state and federal laws as well as your unique family needs. Major family events such as the birth of a new child, a divorce or a remarriage can all trigger unique estate planning consequences and having an attorney who is already familiar with you and your family can help you adjust quickly so that your family is always protected. Planning ahead for disability as well as other health insurance concerns are some additional benefits of estate planning that go beyond thinking about what might happen when you pass away.

Planning ahead for your own future can be difficult because many people do not want to come to terms with their own mortality. It can be even easier to skip out on the estate planning process if you believe that you do not have the wealth necessary to warrant these documents. However, to ensure that your estate is not decimated by taxes, drive through the court system or the prompt that causes all of your family members to argue with one another, it’s important to take these five steps.

Consulting with the lawyer can help you navigate this process and ensure that all of your wishes are carried out. Far too many people fail to plan ahead for incapacitation or their own death and this can leave family members being left to interpret things with the assistance of the court.

Thankfully, these five tips can make things easier for everyone.

• First of all, begin by taking an inventory of all assets and liabilities to determine what’s included in your estate as well as your net worth.
• Identify who needs to be listed on all of your relevant beneficiary forms and set an annual calendar reminder to update this, if necessary.
• Determine whether your executor will be an attorney, a corporate trustee or a family member.
• Determine the type of plan that makes the most sense for you, incorporating concerns about privacy and court oversight.

Identify an attorney who has experience in the field to assist you with your estate planning documents including your will. It is far better to consult with an individual rather than online resources because there is far too much room for error when attempting to accomplish estate planning on your own.

How to Engage in Asset Protection Planning in 2017

See Neel Shah & Rohit Vyas discuss hot to protect your assets in 2017 on TV Asia’s “You & Your Taxes” (Airdate: February 2017)

Asset protection is a type of planning intended to protect one’s assets from creditor claims & implementing strategies for guarding one’s wealth. .Individuals and business entities use asset protection techniques to limit creditors’ access to certain valuable assets, while operating within the bounds of debtor-creditor law.

Asset protection helps insulate assets in a legal manner – without engaging in the illegal practices of concealment (hiding of the assets), contempt, fraudulent conveyances or transfer, tax evasion or bankruptcy fraud.

Asset protection begins before a claim or liability occurs, since it is usually too late to initiate any worthwhile protection after the fact. Some common methods for asset protection include asset protection trusts, LLCs and family limited partnerships.

(Source: Investopedia)

It’s never easy to think about the potential end of your life and putting together a will and other end of life documents. However, it’s a great idea to incorporate this into your long range planning as it could help to protect your heirs and give you peace of mind about the future. Practically every family has had one experience or another with a person who did not take care to fill out a will. Unfortunately, there are also plenty of celebrity mistakes that indicate the downsides of avoiding a will as well.

 

Recently, Caring.com released a study that 58% of Americans don’t have any planning documents at all, including a living trust or a will. The research also identified that just more than one-third of parents who have children younger than age 18 have these documents which means that there are plenty of young parents who may not be appropriately prepared for unexpected tragedies.
The study was conducted by Princeton Research and asked more than 1000 adults about their end of life planning. Although more than 80% of those aged 72 and above have filed those documents. Those at the younger end of the scale have a much lower chance of actually having completed their estate planning. Consulting with a knowledgeable New Jersey Estate planning lawyer is strongly recommended in order to protect your future.

Most people are aware of the major benefits of putting together a will to encompass their estate plans. However, have you thought about what might happen to your digital accounts? It could be devastating to your family, for example, if you have not put together a plan to pass on access information to your Facebook accounts or to your online photo libraries.

 

If your family is unable to access these materials, it could cause additional confusion and stress during a time when they are already grieving your loss. This could be even more amplified for someone who manages a business email account but has not shared the password or given any way for someone else to gain access in the event of an accident.

 

Many people do not anticipate problems such as a heart attack, stroke or another incident that could render you incapacitated or lead to fatal injuries. It is a good idea to name a data executor in your will who will have permission to access your account in the event that something happens to you. Furthermore, take advantage of the legacy planning options afforded by sites such as Twitter, Facebook, and Google that empower someone else to be able to access your accounts if something were to happen to you.
This is an excellent policy to put in place in order to protect yourself and to give your loved ones some peace of mind in the event that they need or want to access this information after you pass away.

Most people recognize what estate planning covers in a basic sense, but plenty of research shows that people have trouble following through on developing their own estate planning documents. A new study also shows that there’s a lack of communication or understanding across generations as well. The study from Fidelity identified that many American families may be less prepared than they realize when it comes to leaving behind a legacy and an estate plan. 

Up to 90% of parents and their adult children understood the need for estate planning in general and the value of having clear conversations about it. However, parents reported that the vast majority of them had already had these discussions with children, but that was not echoed in the children’s own answers. Nearly 70% of parents said they had talked about incapacity and estate planning with their kids, but just over half of the adult child respondents affirmed that.

The study also found that nearly 70% of children and parents were not on the same page when it came to the timeline and circumstances appropriate to discuss estate planning. As it relates to legacy planning and important documents empowering someone else to step in on your behalf if something happens to you, sooner is always better. No one can anticipate an accident but plenty of families have had a bad experience trying to work through a loved one’s injury and sudden incapacitation without the right estate planning.

Waiting too long might only make things more difficult for your family members if they are forced into guessing your wishes or, worse yet, the courts have to step in. Planning ahead just in case is a good way to have peace of mind about what will happen if you are suddenly unable to make decisions for yourself. To learn more about the estate planning process in New Jersey, contact an experienced lawyer who can help you structure a plan in line with your needs.

 

 

 

 

These days, the basic will simply won’t cut it for the vast majority of people approaching their estate plan. This is especially true for those individuals who have amassed wealth over the course of their lifetime.

A comprehensive estate planning strategy includes multiple components beyond planning for your assets to be passed on to another generation. For example, it would also include consideration of your philanthropic goals. In conjunction with your will, estate planning strategies and your philanthropic goals should all be included. 

The right estate planning lawyer can help you determine what should be incorporated into your estate plan. The good news is that your goals can be directly aligned with the documents and tools you use to plan ahead for your future. You can think carefully about your own retirement planning and your estate planning intentions so that things will be as easy as possible for your heirs.

Estate planning should always also look at your goals for while you’re living, too. Too many people focus just on what will happen to their assets after you pass away, but you can also construct documents with your plans for while you’re still alive, such as your healthcare materials to allow someone else to make decisions for you if you become unable to do so. Your power of attorney documents, for example, can give you peace of mind that someone can step in on your behalf if you become incapacitated.

Many people dread the thought of approaching their estate planning. It’s an uncomfortable reminder that we are all limited by our own mortality, but there can be devastating consequences for putting this off until it’s too late and leaving your heirs with an administrative and financial mess. Those individuals who will receive your assets may receive less because of expenses like taxes and court costs. They may not receive them at all in some situations. This is why estate planning is so important regardless of your age, your health condition or the size of your estate. 

 

There are several critical documents that belong in any estate plan, the most important of which is known by most individuals and this is a will. This is the legal document that allows you to determine how your assets will be distributed when you pass away. The state intestacy statute in New Jersey will determine what happens to your property if you pass away without a will. Those individuals who have only a will, however, may mean that your assets have to go through the probate process prior to distribution.

 

Many people living in New Jersey hope to avoid the probate process for the benefit of their heirs and therefore, will use a revocable trust. This trust will act in a similar way as the will, however, it will avoid probate and cut down on expensive court proceedings while also giving greater privacy to your estate.

 

A durable power of attorney is also strongly recommended as another crucial estate planning tool. This allows another individual to step in and take responsibility for your financial affairs, should you become unable to do so. In the event that you become incapacitated without having taken the planning step of naming a durable power of attorney, the court may be responsible for stepping in and naming someone to act on your behalf in a time consuming and possibly expensive proceeding. Thankfully, your ability to look ahead and plan for these risks including incapacity as well as what happens when you pass away can make things much easier for your heirs.

Anytime that a major life change happens, it’s a good opportunity to schedule a meeting with your current estate planning attorney. If you don’t have an estate plan yet, you may need to establish a relationship with someone now so that you can build the trust with this individual to keep your materials updated as you go along.

There are many different situations that could prompt an update in your estate planning materials. This includes not just meeting with your attorney to update your estate planning documents, but also contacting any companies for which you may have beneficiaries listed on the accounts; including your IRA, your bank accounts and your life insurance policies. Some of the most common situations prompting a call to your estate planning attorney for an update include:

•       Selling an investment property.
•       Selling a primary residence.
•       A new child.
•       Marriage or divorce.
•       Changes in your health status.
•       A new job.
•       Having to care for a special needs child.
•       Entering retirement.
•       Decisions to give to charity.

Any of these events could make a great opportunity to update your contingent or primary beneficiaries, add an amendment to your trust or to make adjustments to your will. An experienced estate planning attorney is strongly recommended to ensure that your estate plan is in line with all state and federal laws as well as carrying out your individual wishes.

If you’ve come to terms with the fact that you need an estate plan and that you should hire an attorney to help you craft one, this is the first stage towards protecting your future and passing on your assets in a responsible and clear manner. Once you’ve made the decision, it’s tempting to hire the first attorney you can find, but it’s far more worthwhile to do a bit of digging to determine whether or not your lawyer has enough experience in the field. 

All lawyers have received a special education and passed the bar exam in order to practice within their state, but one of the things that can separate an attorney from the rest of the pack is his or her experience. Experience can be years in the field and it can also be how much of the firm’s and the attorney’s practice is dedicated to estate planning. This is because an attorney with experience will probably have handled situations like yours before and will also be up to date with all the relevant options and laws associated with estate planning. Especially in light of the fact that a new president has just taken office, it’s important to identify a lawyer and legal team who has knowledge of the landscape and can help you determine the best way to look ahead.

An attorney that has some experience handling estate issues or does it every so often is not necessarily a bad choice, but the future of your estate is important and you can gain a lot of benefits from working directly with a lawyer who has significant background experience in this field as he or she is more likely to be familiar with the complex nature of estate planning and how the state and federal laws can evolve and impact your planning choices.

To contact our office and set up a meeting with a dedicated and experienced estate planning attorney, send an email today to info@lawesq.net

No one expects to pass away suddenly, and most people don’t expect to pass away at the same time as their spouse. However, this can happen, and it can create estate planning confusion and frustration. Estate plans tend not to take the possibility of two people who have left everything to one another passing away at the same time, but what’s known as a simultaneous death clause in your planning documents can help lay out a clear plan for what loved ones should do next if this happens. 

The majority of people with intertwined estates are married couples, but other family members may have connections, too. If both these family members were to pass away at the same time, for example, in a car accident, then an event like this can make things extremely complicated for the surviving loved ones.  A simultaneous death clause can help lay the groundwork for your estate planning in the event that both of you pass away at the same time. This is often used to avoid intestacy laws in New Jersey kicking in to determine where the assets will go, which removes the couple’s or family member’s desires from the equation.

When there is no such clause in your documents, probate courts in New Jersey can treat this situation by dispersing assets as though each of the two spouses had died first. This means that the wife’s heirs will get her assets and the husband’s heirs will get here.

Delving into the process of estate planning might feel overwhelming if you’re not sure what the various terms mean. Read on to get a glossary briefing about some of the most common terms you might hear during this process. 

Guardian: A person who is appointed to care for another individual. Can be for disabled persons, those unable to make decisions for themselves, and minors.

Fiduciary: A person who makes financial decisions for another in the same manner in which they would make financial decisions for themselves.

Testator: The individual who makes a will.

Executor: The person named in a will responsible for managing the estate after the person who has created the will has passed away.

Intestate: This is the situation in which someone passes away without a will.

Joint Tenancy: When two or more people co-own a property.

Will: A basic estate planning document that allows you to name someone to care for your minor children if you pass away as well as your intentions for distributing your property.

Living trust: An entity established by a person or group of persons with the intention of controlling property, removing it from an estate, and determining how the property will be distributed to others. Offers more privacy than a will.

Probate: The legal process through which the court determines how a person’s assets will be distributed.

Revocable living trust: A trust that can be changed or revoked over the course of the grantor’s lifetie.

Irrevocable living trust: A trust in which the terms cannot be altered.

Power of attorney: A document used to enable another individual to make decisions on your behalf, typically relating to healthcare or to financial issues.

 

An estate plan usually begins with a will or a living trust. While a basic will is important for providing your instructions, it does not avoid probate. Any assets that are titled in your name or directed from your will have to go through the probate process before they can be distributed to your beneficiaries. In the event that you own property in several different states your family will probably have multiple probate situations, each one aligned with the laws in that particular state.

The process can vary tremendously from one state to another and it can become very expensive with executor fees, legal fees and court costs. It can also take anywhere from a couple of months to two years or longer. It can also be opened up to the public in certain situations. This is why it’s important to realize that the court system and not your family actually controls the process of your estate plan if you use only a basic will. Not everything that you do own will have to go through the probate process.

Assets that allow you to name a beneficiary such as annuity or life insurance policy will be exempted from this as well as jointly owned property. However, there are many reasons to consider using a revocable living trust as this is a very popular option for many families and professionals. It helps to avoid the probate process at death and can even assist with multiple probates in the event that you own property in numerous states. It can also bring all of your assets together within one plan and give you a better shield of privacy.