Should I Make Beneficiary Designations If I Have a Will?
Many people in New Jersey assume that making a will is the only thing they need to do as far as estate planning is concerned, especially if they have a relatively simple estate. However, we want to emphasize that this is a common misconception. In fact, there are various other estate planning documents that are necessities for every estate plan, including advance directives that concern future health care planning and decision-making. At the same time, even if you do have a relatively simple estate, or relatively few major assets, the chances are good that you do not actually want to leave these to your loved ones through a will.
While a will is necessary for other important reasons, the best ways to leave assets to your intended beneficiaries are methods other than a will. One of those options includes making beneficiary designations. Our Summit estate planning attorneys can explain in more detail.
Why Avoiding Probate is Appealing
You should certainly consider beneficiary designations, as well as other estate planning tools, in order to allow your beneficiaries to avoid probate. Only assets that are passed through a will must go through the probate process. Why is avoiding probate so appealing?
The probate process can be quite long and complex, even for estates that are not especially large. What this means is that it can be many months, or even longer, before a beneficiary actually receives any assets left to them through a will. Differently, assets left to beneficiaries through beneficiary designations, or through revocable living trusts, do not have to go through probate. As such, they can go to the beneficiary nearly immediately.
How Beneficiary Designations Are Useful
In New Jersey, there are various types of assets that you may have in which you can designate beneficiaries. Rather than having to go through the probate process as we discussed above, these assets can be distributed directly to beneficiaries, or beneficiaries can become the direct owners of the assets.
Certain pensions, life insurance policies, and related assets allow the owner to designate a beneficiary, and often an alternate beneficiary, as well. Simply by designating a beneficiary of your choosing, you can ensure that these assets go to the named beneficiary upon your death.
Bank accounts also allow beneficiary designations, which are “payable-on-death” (POD) beneficiary designations. These designations can be made for nearly all types of bank accounts, including checking and savings accounts, as well as investment accounts. To find out about POD beneficiary designations for your accounts and for other assets, you should discuss the details of your property and finances with an estate planning lawyer who can assist you.
Contact a New Jersey Estate Planning Lawyer in Summit
If you have any questions about beneficiary designations, or other ways of leaving assets that avoid probate, one of the experienced Summit estate planning lawyers at Dempsey, Dempsey & Sheehan can assist you. We can help you to create a revocable living trust or another type of trust that is relevant to your needs while also ensuring that you have all other necessary estate planning documents in place. Contact our firm today for assistance.
Source:
law.justia.com/codes/new-jersey/title-3b/
