When considering how to structure their estate plan, many in New Jersey are simply unsure where to begin. This is especially true for individuals who have no estate planning experience, and for whom the array of choices may feel daunting. In reality, however, the process of outlining your wishes is far easier than many imagine, and can be completed relatively quickly.
The first step is to create an overview of your financial standing. For some, this is as simple as compiling a list of all assets and accounts. A more varied financial scenario may require the help of a financial advisor, who can look at your holdings and create a written overview. Once you know what you are working with, the process of dividing those assets becomes far easier.
It is also important to consider the tax ramifications of various estate planning choices. Each individual will have a unique set of circumstance in regard to taxation matters. However, it is possible to reduce your tax burden with the proper degree of attention and planning. Making use of trusts and maximizing the benefits of charitable giving are just two of the many ways to reduce tax obligations.
For some in New Jersey, estate planning is a process that is put off for far too long. Once the process begins, many find that it is easier than anticipated. In addition, knowing that your wishes are clearly outlined can bring a welcome sense of relief. In many ways, estate planning is something that we do for those we love the most, not for our own benefit. Completing this task can allow you to move forward in the knowledge that you have provided for those you will eventually leave behind.
Source: The Berkshires, “Five Steps to Help Create an Estate Plan“, , March 31, 2014