New Jersey residents may be interested in learning how some information may affect them as far as estate planning is concerned. Many people may believe they do not need estate planning because their estates are not large enough to be affected by federal taxes. However, there are many valid reasons for people to plan for who should receive their assets when they die.
The main objective of estate planning is deciding on who the beneficiaries are and when they will receive their inheritances. A will or living trust will help bring plans into fruition, and such documents are imperative if a person’s desires vary from the norm. For example, while many state laws allow assets to be given to spouses upon death, they might not provide the same outcome for the children of those marriages.
People may choose to set up trusts for their loved ones, particularly if they do not want a beneficiary to have immediate access to any assets that they are to receive. There are many reasons to hold off, including the decedent’s children being too young to manage their inheritances. Other considerations include whether the heirs are able to manage the property or spend the money responsibly. A trust can also serve to protect the assets from the beneficiary’s creditors.
The estate planning process for New Jersey residents does not need to be complicated. An attorney who is familiar with the planning and administration of estates might be able to help. After reviewing people’s circumstances, a lawyer might be able to offer viable options in order to educate those seeking advice on the best manner in which to proceed.
Source: Investing Daily, “The New Focus of Estate Planning“, Bob Carlson, August 23, 2013