Estate planning involves more than writing a will. Most comprehensive estate plans include several legal documents that work together to protect your wishes, your finances, and your loved ones if you become incapacitated or after your death. Having these documents in place before they are needed can also make it easier for your family to carry out your instructions.
While every estate plan is unique, these are seven of the most common documents to discuss with your New Jersey estate planning attorney.
1. Last Will and Testament
A Last Will and Testament serves as the foundation of many estate plans. It identifies who should receive your property after your death and names an executor to administer your estate.
Your will also allows you to nominate a guardian for your minor children and provide instructions for distributing personal belongings or specific gifts. Without a valid will, New Jersey’s intestacy laws determine who inherits your property, which may not reflect your wishes.
2. Advance Directive for Health Care
An Advance Directive for Health Care, often called a living will, lets you express your medical treatment preferences if you cannot communicate them yourself.
You may also appoint a healthcare representative to make medical decisions on your behalf. This document provides guidance for your loved ones and healthcare providers during difficult situations and helps ensure your treatment preferences are respected whenever possible.
3. HIPAA Authorization
Federal privacy laws generally prevent healthcare providers from sharing your medical information without permission.
A HIPAA authorization allows the individuals you choose to receive medical updates, communicate with your doctors, and obtain copies of your medical records. This document is valuable for adults of every age, including college students whose parents may otherwise be unable to access medical information during an emergency.
4. Durable Power of Attorney
A Durable Power of Attorney allows you to appoint someone you trust to manage your financial affairs if you become unable to do so.
Depending on the authority you grant, your agent may pay bills, manage bank accounts, handle investments, file taxes, or complete other financial transactions on your behalf. Because the document remains effective if you become incapacitated, it may help avoid the need for a court-appointed guardian or conservator to manage your finances.
5. Revocable Living Trust
A Revocable Living Trust can be a useful estate planning tool for some individuals and families. During your lifetime, you generally retain control of the assets placed in the trust and may modify or revoke it if your circumstances change.
Depending on your goals, a trust may help avoid probate for assets held in the trust, simplify the administration of your estate, and provide a smoother transfer of property to your beneficiaries. Whether a trust is appropriate depends on your assets, family circumstances, and long-term planning objectives.
6. Beneficiary Designations
Certain assets pass directly to named beneficiaries instead of through your will. These often include retirement accounts, life insurance policies, payable-on-death bank accounts, and transfer-on-death investment accounts.
Because beneficiary designations generally control who receives these assets, it is important to review them regularly. An outdated designation can produce unintended results, even if your will provides different instructions.
7. Digital Asset Instructions
Many people own valuable digital assets, including online financial accounts, email accounts, cloud storage, social media profiles, and digital photographs.
Rather than placing usernames and passwords in your will, many people maintain separate instructions identifying important accounts and how they should be accessed or managed. These instructions can be updated as your accounts change without requiring you to revise your estate planning documents.
Protect Your Wishes with a Comprehensive Estate Plan
No two estate plans are exactly alike. While these seven documents form the foundation of many plans, you may benefit from additional planning tools based on your family, assets, and future goals. Reviewing your estate plan periodically also helps ensure it continues to reflect changes in your life and current law.
At E.A. Goodman Law, LLC, we help individuals and families throughout New Jersey create estate plans tailored to their needs. Whether you are preparing your first estate plan or updating existing documents, we are here to help. Contact us today to schedule a consultation.
Posted in: Estate Planning