What Assets Should Be Included in a New Jersey Estate Plan?
When people think about estate planning, they often assume it is only about deciding who gets the house. But in reality, a complete estate plan in New Jersey should account for a wide range of assets. What exactly should you be including?
If you are starting the process, it helps to take a step back and look at everything you own or control. Estate planning is about making sure those assets are handled the way you want, both during your lifetime and after your death.
Start with the obvious assets
Some assets are easy to identify because they are high-value or central to your finances. These are typically the first things people think about when creating a plan. You should be sure to account for:
- Real estate, including your primary home and any investment properties
- Bank accounts such as checking, savings, and money market accounts
- Retirement accounts like IRAs and 401(k)s
- Investment accounts, including stocks and brokerage holdings
- Life insurance policies
- Business interests or ownership shares
These assets often make up the bulk of an estate. However, they are not the only things that matter.
Don’t overlook personal and digital property
Have you considered your personal belongings or digital presence? These can be just as important, especially if they carry financial or sentimental value.
Personal property can include jewelry, artwork, vehicles, and collectibles. While each item may not seem significant on its own, together they can represent a meaningful portion of your estate.
Digital assets are another area that many people forget. This can include online accounts, cryptocurrency, digital photos, and even intellectual property stored online. Without proper planning, accessing or transferring these assets can become complicated for your loved ones.
Beneficiary designations and non-probate assets
Here is something that surprises a lot of people. Not all assets pass through a will. Some transfer automatically based on beneficiary designations. Examples include retirement accounts, life insurance policies, and payable-on-death bank accounts. These are known as non-probate assets because they bypass the probate process entirely. Under New Jersey law, assets that pass by beneficiary designation are generally not controlled by the will (see N.J. Stat. Title 3B). This means it is essential to keep those designations up to date. Otherwise, your estate plan may not reflect your current wishes.
Planning for debts and obligations
Estate planning is not only about assets. You should also think about any debts or liabilities tied to your estate. Mortgages, credit card balances, and other obligations must be addressed during the administration process.
Taking these into account can help ensure that your estate is handled smoothly and that beneficiaries are not faced with unexpected complications.
Seeking Help from a Professional
A well-rounded estate plan in New Jersey should include more than just a will. It should reflect a full picture of your financial life, from real estate to digital assets and everything in between. The more thorough you are now, the easier things will be for your loved ones later.
If you are ready to take the next step, work with our experienced Summit estate planning attorneys. Our team at Dempsey, Dempsey & Sheehan can help ensure nothing is overlooked and help you build a comprehensive estate plan tailored to your needs. Contact Dempsey, Dempsey & Sheehan today to get started.
Source:
law.justia.com/codes/new-jersey/title-3b/
