WILLS AND ESTATES

TOP FIVE REASONS TO UPDATE YOUR WILL

What are some of the most important reasons to update your will? Estate Attorney NJ

1. Changes in your family

Families are always changing.  In addition, the relationships you may have with people named in your Will may have changed. Life is full of major life events which can lead to a plethora of wonderful new people in your life through births, adoptions, and marriages. These events are not limited to your immediate family but can also include births of grandchildren, nieces, nephews, the children of friends that you may want to add to your will.  Sometimes there also may be a divorce or a death.  You may want to reconsider whether, for example, you still want to leave your jewelry to your ex-daughter in law.  Additionally, you may have changed—perhaps you have established a relationship with a charity or other organization for which you wish to provide after your passing.

Now, if you had a child since your Will was first executed, it's suggested that you review your Will and name a guardian or guardians in the event should something happen to you or your spouse. Also, if your children have reached the age of majority since you last drafted your will, you may wish to consider revising certain inheritances, or even naming them as executors.

You should review your list of heirs, guardians, trustees, and/or executors. Consider whether their situations have changed in some way. For example, are they still of sound mind and capable of serving in the role you have designated? Have they passed away? These are definitely reasons you may need to immediately update your Will.

2. Changes in Financial Status/Assets

If your estate has experienced a substantial increase or decrease in value, it is vital to take another look at your Will. Perhaps you have bought or sold a major asset or started a business. You may have new insurance policies or pension plans for which you can name beneficiaries in your Will.  To avoid leaving family members wondering about your desires, and perhaps painfully disputing them, be sure to account for any key assets as you acquire them as well.

What happens if I have property and it’s not listed in my Will?

3. Changes in Location

If you move to a new state, you'll need to consult with an attorney to determine whether your Will needs to be amended due to state inheritance tax or other considerations. Estate laws differ from state to state, so your Will needs to be reviewed by a professional.

4. Regular Review

If you haven't looked at your Will in the past three (3) years, now is probably a very good time to start your initial review.  Finances and estate planning go hand in hand, so tax time is the perfect time to review your Will and make sure all of your affairs are in good order. If you are over age 65, it is also recommended that you review your Will.  This is especially true as this is roughly the age when your IRA, 401(k) and or other qualified plans require you to begin taking your distributions.

5. Changes in Tax Laws

State and federal tax laws are constantly changing, so you need to be aware of any changes that may affect your estate plan. Staying informed and consulting an attorney who specializes in Wills and estate planning are your best bets.

Contact us today to schedule your appointment 800-709-1131.

YOUR CHECKLIST

Will Review Checklist NJ Estate Attorney

Here are just a few things to consider as you review your Will:

·         Birth or adoption of a child/grandchild

·         Marriage/divorce

·         Death of someone named in your Will

·         Children have reached the age of eighteen

·         A change in the circumstances of your executor, guardians, trustees, etc.

·         Whether you intend to provide for a charitable or other organization

·         A significant increase or decrease in the value of your estate

·         You have started a business

·         A change in tax laws

·         You are approaching the age at which you are required

to begin taking distributions from your IRA, 401(k),

or other qualified plan (usually 70 years old)

·         You have moved out of state

·         It has been three years or more since you have reviewed your Will

Contact us today to schedule an appointment 800-709-1131

POWER OF ATTORNEY

Another document we typically don’t think about is Power of Attorney.  This document many times is created during a Will.

Why does someone need a Power of Attorney “POA”?

What if an accident or illness, or just the effects of aging, left you unable to tell your doctors what kind of medical treatment you want, or made it impossible to manage your financial affairs? No one likes to consider such grim possibilities, but the truth is that nearly every family will eventually face this kind of distress. Medical and financial powers of attorney can make life easier for you and your family if times get tough.

What is a Power of Attorney “POA”?

A POA is a document that authorizes someone else (agent) to act on your (principal) behalf should you not be able to do so.  The agent can have broad legal authority or limited authority to make legal decisions about the principal's property and finance. The POA is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents or complete financial transactions.

 Can I revoke a POA?

Yes, you can revoke a POA at any time.

What is a durable Power of Attorney?

A special type of power of attorney that is used frequently is the "durable" power of attorney. A durable power of attorney differs from a traditional power of attorney in that it continues to allow the chosen person to act on your behalf in making legal decisions.  There are two types: The first type takes effect as soon as the durable power of attorney is executed. The second is intended to "spring" into effect when a specific event occurs, such as the disability of the principal. Most often, durable powers of attorney are created to deal with decisions involving either property management or health care.

Why should I have a POA?

There are many good reasons to make a POA, as it ensures that someone will look after your financial affairs if you become incapacitated. You should choose a trusted family member, a proven friend or a reputable and honest professional. Remember, however, that signing a power of attorney that grants broad authority to an agent is very much like signing a blank check - so make sure you choose wisely and understand the laws that apply to the document.

ADVANCED DIRECTIVE

What is a Living Will, Health Care Directive or Advanced Directive? NJ Wills Attorney

A Living Will or an Advanced Directive “AD” is a document you sign when you’re healthy and have all your faculties.  This document advises your family and medical care professionals regarding your wishes when you can no longer speak for yourself.  It also outlines what measures, if any, you would like to be taken to prolong your life if you become terminally ill.   It is recommended that each individual has an AD so that your family knows and understands your wishes.  We recommend naming at least one backup agent in case your first agent can no longer serve.

Contact us today to schedule an appointment 800-709-1131