What Are the Essential Components of a New Jersey Estate Plan?

If you are beginning to think about estate planning, it is important to have a broad sense of some of the essential components of an estate plan in New Jersey. Every person’s estate plan will be tailored to their specific needs, so it is essential to work with an estate planning attorney in Summit to determine exactly what types of estate planning documents and tools should be part of your estate plan. At the same time, there are some general documents and tools of estate planning that every person should have or at least consider. The following documents and tools usually make up the backbone of estate plans in New Jersey.

Advance Directives 

Everyone in New Jersey should work with an estate planning lawyer to create advance directives. Advance directives include both a proxy directive and an instructive directive. In other states, these often go by the names of a health care power of attorney or durable power of attorney for health care (the proxy directive) and a living will (the instructive directive).

The proxy directive allows you to name an agent to act on your behalf for medical and health care purposes if you become unable to do so yourself. The instructive directive informs your health care providers about specific medical care you wish to receive or wish to have withheld, including life-sustaining care in certain circumstances.

Will

A will is important for multiple reasons. While you may use it to leave property to beneficiaries, this document also allows you to name an executor for your estate who you trust, and it allows you to identify a guardian who you want to be appointed to care for your minor children in the event the unexpected occurs and you pass away.

Revocable Living Trust and Other Trusts 

For most adults in New Jersey with assets, a revocable living trust will be a good idea to include as part of an estate plan. This is a flexible type of trust that allows you to make any changes to it that you want during your lifetime or to close it entirely. As such, you still have the ability to control your own assets, but you can leave those assets to loved ones without having to go through the often complex and lengthy process of probate.

Powers of Attorney 

We already mentioned the proxy directive above. In addition to this type of power of attorney, you should also consider a durable financial power of attorney. This document can allow an agent of your choosing to handle financial issues for you, either immediately, or in the event that you become incapacitated and unable to handle such matters for yourself.

Contact a Summit, New Jersey Estate Planning Attorney

If you do not have an estate plan in place, now is the time to begin working with a lawyer. Estate planning is extremely important for New Jersey adult residents of all ages, whether you are just starting college, you are of retirement age, or you fall somewhere in between. Estate planning can allow you to make important decisions about your property, your finances, and your health care in the event that anything unexpected happens, or if a current medical condition worsens suddenly. Our firm is here to help give you peace of mind. Contact one of the experienced Summit estate planning attorneys at Dempsey, Dempsey & Sheehan today to get started on your estate plan or to update your existing estate plan.

Sources:

law.justia.com/codes/new-jersey/title-3b/

nj.gov/health/advancedirective/ad/forums-faqs/