Estate Planning
Estate Planning Attorney in Wayne, NJ
Estate planning is a process that helps manage and distribute your assets after death. It typically involves creating essential legal documents like wills, trusts, and powers of attorney. Estate planning can also address personal and healthcare decisions, including tax planning. The primary aim is to ensure that your wishes are followed and to avoid complications such as intestacy, where state law determines how your estate is divided.
What is Estate Planning?
Estate planning is the preparation of legal documents to ensure that your assets are passed down according to your wishes after death. This process often involves creating documents like wills and trusts. A will serves as a fundamental component of an estate plan, outlining how your property will be distributed. Without a will, state laws govern asset distribution. Other essential documents include trusts, which can help bypass probate, and powers of attorney, which allow someone to make decisions on your behalf if you become incapacitated.
Estate Planning Services in Hackensack
Last Will and Testament
Your last will and testament is a vital part of your estate plan. If you pass away without a will, you are considered to have died “intestate,” and state laws will decide how your assets are distributed. Key facts about wills include:
- A will only takes effect after death and does not manage affairs in case of incapacity.
- A will does not prevent probate; it is submitted to the probate court, initiating the process.
- It allows parents to designate guardians for minor children, preventing potential conflicts over guardianship.
Trusts: Revocable Trusts, Irrevocable Trusts, and Special Needs Trusts
Trusts serve various legal, personal, financial, and tax purposes. At its core, a trust is a legal entity with three roles: the trust-maker, the trustee (who manages the trust), and the beneficiary. In some cases, one person or a married couple may fulfill all three roles. For example, a revocable living trust allows a person to be both the trust-maker and trustee while benefiting from the trust during their lifetime.
Establishing a trust can offer several benefits, such as:
- Avoiding probate, as assets in a revocable living trust are transferred to beneficiaries without probate.
- Potential tax advantages for both the trust-maker and beneficiaries.
- Protection of assets from creditors.
- Ensuring that the trust continues to function even if the trust-maker becomes incapacitated.
Consulting an estate planning attorney like Benjamin Eckman can help determine if setting up a trust aligns with your family’s needs.
Power of Attorney
A power of attorney grants another person (the attorney-in-fact) the authority to act on your behalf. The scope of these powers depends on the document’s terms and can range from broad to specific.
- Powers of attorney end upon the death of the creator, and some may terminate upon incapacity.
- A durable power of attorney is designed to appoint a backup decision-maker if you become incapacitated.
- Regular updates to the document are recommended, as banks and financial institutions may hesitate to accept older powers of attorney.
Health Care Decisions (Advance Directives)
An advance directive outlines your preferences for medical and personal care if you lose the capacity to make or communicate decisions. It’s available to anyone over 18 and is legally binding in New Jersey.
- An advance directive specifies your preferred decision-maker and under what conditions you wish to withhold life-sustaining treatment (e.g., if you’re in a coma with no likelihood of recovery).
- An accompanying document authorizes healthcare providers to share medical information with designated individuals, ensuring effective communication.
For personalized guidance on estate planning in Wayne, reach out to the Law Offices of Benjamin Eckman. We can help ensure that your estate plan reflects your wishes and provides for your loved ones.