A well-prepared estate plan does more than explain who receives your property after death. It can also address financial and healthcare decisions if you become unable to make them yourself. Knowing which documents to review can help you build a plan that reflects your wishes.
Start with your core estate documents
Your checklist should cover the documents that direct what happens to your property and who can act for you. Depending on your circumstances, this may include:
- Will: A will explains how you want certain assets distributed and can name an executor to handle your estate.
- Trust documents: A trust can hold and manage assets under instructions you establish. Different trusts serve different purposes.
- Durable power of attorney: This document allows someone you choose to handle financial matters if you cannot manage them yourself.
- Advance directive: This addresses healthcare decisions and can communicate your wishes if you cannot make or express those decisions.
- Beneficiary designations: Retirement accounts, life insurance policies and certain financial accounts may transfer according to beneficiary forms rather than your will.
- Guardianship provisions: Parents may want to consider arrangements for minor children as part of broader estate planning.
Review how your assets will transfer
A New Jersey estate plan should account for how each major asset will pass to another person. A will does not necessarily control every asset because joint ownership and beneficiary designations can affect distribution.
Under New Jersey law, properly executed estate documents can establish your wishes and provide direction for those handling your affairs. Federal law may also affect retirement accounts, life insurance and certain tax-related issues.
New Jersey inheritance laws can also affect how an inheritance is treated depending on the beneficiary’s relationship to the person who died. Reviewing your beneficiaries and potential tax consequences can help you avoid unintended results.
Keep the checklist current
Creating the documents represents only one part of estate planning. Major life events can change what your plan should accomplish. Marriage, divorce, a new child, a death in the family, significant changes in assets or a move to another state may warrant a review.
A complete estate planning checklist helps you address both property and personal decisions. Reviewing your documents periodically can help ensure they continue to reflect your wishes and current circumstances.