Where There Is A Will There Is A Way
Many of you have heard the saying the only two certain things in life are death and taxes. While neither are avoidable, through proper planning you can assure that your wishes upon your death are carried out and that any financial consequences are minimized.
A will is simply a legal document which directs how your property will be distribute upon your death. In your will you will designate an executor who will gather your assets upon your death and with those assets pay your debts. Persons who have minor children should select a guardian to care for your child if you and your spouse pass away before the child reaches the age of eighteen.
Under certain circumstances you may wish to set up a trust as part of your will. Under these circumstances a trustee would be designated to manage and distribute the trust funds. It is the responsibility of the trustee to distribute the trust funds to the beneficiary.
Upon someone’s passing, property held in that individuals name alone, passes under the terms of the will. Examples of this type of property are, bank accounts, personal property, stocks and bonds, cars and jewelry. Property held jointly such as a home or bank count with more than one name on it pass to the survivor outside of the will. Assets such as life insurance proceeds, IRA accounts and 401k plans pass outside the will to the beneficiary designated. An estate plan is a critical planning tool to minimize and financial/tax consequences upon someone’s death.
If you neglect to prepare a will than the disposition of your assets will be made in accordance with your state’s intestacy laws, which in many cases may not be in accordance with your wishes. Furthermore, the cost associated in administering an intestate estate will undoubtedly be more expensive and time consuming.
For the most part, a spouse cannot disinherit the surviving spouse regardless of what is contained in your will. Generally, the surviving spouse is entitled to receive about one- third of the assets subject to probate. With the assistance of an attorney, you may be able to limit the amount your spouse inherits.
If you already have a will, you may wish to consider updating it. If you get divorced, a beneficiary dies or the law changes it is prudent to seek the advice of an attorney to see if a new will is on order.
While some things in life are certain, a little planning can make sure that your wishes are carried out and that Uncle Sam does not get anymore of your hard earned money than they are entitled to.
This article is intended for general informational benefit only. It is not meant to be a substitute for a consultation with an experienced New Jersey Personal Attorney. The facts and circumstances of each person are unique. Shapiro & Sternlieb, LLC is a full service law firm dedicated to providing the highest caliber legal representation. Please call 732-617-8050 is you wish to speak with one of our attorneys.
