Everything that you have earned and own should go to the right people after your death. Estate planning, however, is much more than that. It allows you to prepare for various contingencies and eventualities while finding ways to save on taxes that are typically applicable in New Jersey. If you need help with estate planning Cherry Hill, you can hire an attorney for advice. In this post, we are sharing a few tips to get you started.
Make your list
Most people assume that estate planning is not for them because they don’t own “enough”. That’s not the truth. The first step in the process is to make a list of things that you own, including intangible assets. Your list should include real estate investments, homes, collectibles like antiques, valuable personal possessions, bank accounts, stock & mutual fund investments, life insurance policies, individual retirement accounts, and business shares.
Consider your priorities
The next step is to decide what matters to you the most. For instance, if you are married, do you have enough life insurance for your family? Do you have a child with special needs? Who should be the guardian of your child? You have to consider the possible impact of your death on your family members and create an estate plan to address those concerns. Your estate planning documents should honor your wishes and leave no room for confusion.
Evaluate all estate planning tools
For some people, a living trust is a good estate planning tool, which allows them to select a trustee to act on their behalf if they get incapacitated. A will comes into effect after the person’s death, but the probate process can be a long and complicated one. A trust doesn’t need to go through the probate process. You can also consider different advanced healthcare directives. The first one is a medical care directive, which allows you to choose or reject certain treatments and procedures if you are incapable of making decisions. You can also create a durable power of attorney for healthcare, where you can choose a family member or friend to make decisions if you are incapacitated. You should also consider having a durable financial power of attorney, which allows a person of your choice to handle your finances when you cannot do so.
Get an attorney to understand the process and key aspects of estate planning. A skilled lawyer can explain your options and guide you on potential tax savings.