Estate Planning in Ocean and Monmouth Counties

Some people mistake an "estate" for something Donald Trump might own. In reality, it simply comprises all the property you possess at the time of your death, including real estate, bank accounts, stocks and other securities, life-insurance policies, and personal property like automobiles, jewelry, and artwork.

Hiring an estate-planning attorney to craft a detailed and solid estate plan will ensure that your goals and wishes are met with minimal delay, expense, and acrimony. And thanks to our expertise in tax law, we can help you minimize the extent to which the state and federal governments tax your estate.

An estate plan may include the following:

Will

This document directs how your property will be disposed of at your death. It designates an executor—the person responsible for assembling your property, paying debt and taxes, and distributing whatever property is left. It may also appoint a guardian for minor children; a trustee to manage your property; and/or funds to be used for someone's benefit.

If you are among the 70 percent of Americans who die without a will, your property will be inherited in accordance with the law—which may not reflect your wishes. In the absence of a spouse or close relatives, the State can seize your property. Someone not of your choosing may be appointed to care for your property, and he or she may have to post bond. Such aggravation and expense can be avoided with a will.

Under the current law, your spouse has rights to your estate. With the help of an estate planning attorney, you can limit your spouse's right or determine who inherits your estate after your spouse dies.

Once your estate planning lawyer drafts your will, the document should not be tossed in a box to gather dust. With continual modifications in federal and state laws—as well as changes in your own life and family—you and your estate planning attorney should review your will every three to five years. As a client courtesy, we send a note every five years reminding you to review your will.

Revocable Trust

This is a document in which you designate yourself, another person, or a professional (such as a bank or other financial institution) as your trustee. The trustee is responsible for reviewing your investments, making recommendations where appropriate, and implementing changes based on your investment objectives.

A revocable trust may enable the trustee to act on your behalf—without your approval—particularly if you become disabled. This process negates the need for a court-appointed guardian. It may also avert probate.

Not everyone needs a revocable-trust agreement. Before you decide, discuss the benefits with your attorney. Ask yourself the following questions:

• What are my goals and objectives?
• Do I need to avoid probate?
• Do I trust a person or financial institution to act on my behalf?
• Have I taken the necessary steps to protect myself in the event of disability?

A professional trust offers certain advantages:

• Continuity of management by more than one individual
• Errors-and-omissions insurance
• Regular statements that report market value, gains and losses, rates of income, changes in investments, where income has been applied
• Trained trust administrators

Power of Attorney

Someone you trust to act on your behalf in case of illness, disability, or absence. If you become sick or are vacationing out of the country, for example, he or she will have authority to make decisions for you.

A durable power of attorney provides authority to pay bills, borrow money, and complete tax, medical, and other official forms. This power is far reaching and must not be taken lightly. You can also appoint an alternate in case your first choice is unable to perform his or her duties.

As the name suggests, a limited power of attorney has more "limited" power. It takes effect only if you become disabled, and it normally requires a physician's written report confirming you are unable to manage your personal and financial affairs. The limited power of attorney may only have access to certain financial accounts and for a brief period of time.

A durable power of attorney can be instituted at anytime, regardless of illness. A limited power of attorney can only used if you become disabled.

If you are unwilling to cede power to any individual, consider a guardianship or revocable trust.

Living Wills and Medical Directives

You may remember the tragic story of Karen Ann Quinlan, the 21-year-old woman who lapsed into a coma and was connected to life support until her parents petitioned the New Jersey Supreme Court to allow her to "die with dignity." That year, 1985, the court recognized that a person's right to privacy includes his or her decision to accept or decline medical treatment.

Today, New Jersey and most other states have adopted "living will" statutes, which embody these rights to privacy and self-determination. A living will allows you to decide what, if any, forms of treatment you desire should you become seriously ill. These include suffering from irreversible illness, life-support systems, terminal illness, cardiopulmonary resuscitation, and the like.

A living will also enables you to select someone to act on your behalf for other medical decisions, including: hiring physicians, nurses, and other healthcare professionals; the placement in or removal from a hospital; and arranging for treatment at home.

It’s important to remember that a living will is revocable and is only valid when you are incapable of speaking on your own behalf.

Estate planning and wills are our specialty—and we make the process easy and painless. To take care of these important documents today, call us for a consultation at 732.657.0600. Or click here to contact us now.