The beginning of the year is a great time to do an Estate Plan Check Up! What that entails is reviewing your estate planning documents with an attorney. Although it can be uncomfortable to think about the possibility of dying, you should be aware of any consequences recent decisions might make on how your assets will be distributed upon death.

Every day, someone makes an estate planning decision without even knowing it when they do things like open a bank account, take a new job, or buy a house.

Some of the major decisions of when estate planning comes into play are:

MARRIAGE

• Often a couple who is newly married does not set up an estate plan, leading to unintended consequences.

BIRTH OF A CHILD / ADOPTION

• Make sure your children are provided for in your Last Will and Testament.

DIVORCE

• It is imperative that beneficiary designations be changed on life insurance and retirement plans when a divorce is final. It will save a lot of time and money in your estate.

DEATH IN THE FAMILY

• Whenever someone in your immediate family dies it is a good idea to review your estate plan to make sure the deceased individual is not named in your estate planning documents.

INHERITANCE

• Many people come into an inheritance of money, real estate and/or stocks and really need to plan how assets are titled and who will receive their assets under their Will.

PURCHASE OF REAL ESTATE

• Whenever you purchase real estate you are making an estate planning decision by how the deed is titled and if the titling fits in with your estate plan and how assets should be distributed under your Will.

JOB CHANGE

• As an employee, you must make estate planning decisions when designating beneficiaries on life insurance and 401K plans. And often, past employment has retirement planning accounts that should be rolled over or moved.

OPENING AN ACCOUNT

• Whenever you open a bank account, brokerage account, or any other type of account with a financial institution you are doing estate planning.  Care must be taken how an account is titled so that the asset passes in conjunction with your Last Will and Testament.

TAX CHANGES IN THE LAW

• Maybe you have an old Will with trusts that are antiquated and need to be revised.  Many times, these documents have not been reviewed by an attorney in years and when a spouse dies then you have to try to deal with the consequences and it cannot always be resolved with the intended result.

Why it is important to do Estate Planning

If you do not have a Will in place, your assets will pass forward under intestate law, and may not flow to the persons intended. It is always a good idea to make an appointment to create or review your estate plan to ensure your wishes are being met.

Need to set up or review of your Estate Plan?

If you have more questions regarding estate planning and/or administration in NJ, contact us.