National Make a Will Month
Do you have a Last Will & Testament and or a full estate plan in place? As we are nearing the end of August, you can start, or review, your estate planning, as August is the National Make a Will Month. It is a great time to get your estate plan in place or address your current estate planning status to review and get it up to date as may be needed. National Make a Will Month presents a good opportunity as to both, and is also a reminder for you to review the past, current, and future matters as to your wishes and intentions to then document same.
The Importance of Having a Will & Complete Estate Plan
A properly executed, witnessed, and notarized Will is a legal document for estate probate setting forth your intentions and as to distributions of your assets, property, and any other personal items set forth therein. If no original Will is in place, or a Will that is not properly executed as set forth above when you pass, then your matter is intestate, also referred to as estate administration in lieu of probate, and will be a bit more or an estate process. By creating a properly executed Will, you can ensure that your intentions are carried out as set forth and assist in a more efficient estate process.
Setting Forth Your Estate Planning Goals
A specific and well-defined, properly executed Will clearly sets forth your intentions. Prior to drafting your Will, or revising your current Will, it helps to identify and set forth your current estate planning intentions. We offer an Estate Planning Questionnaire which helps address and focus your estate planning matters, to include: your intentions; your beneficiaries; your titled properties; personal assets; and many other aspects as to your Will, all of which supports a thorough, satisfactory, and legally binding Will.
Selection of Authorized Representatives for Your Will
Authorized representees will serve critical roles in your Will and the administration of your estate. After your passing, these individuals will be responsible for carrying out your wishes as set forth in your Will to include marshaling of assets, managing distribution of assets, settling debts and liabilities, and navigating the legal and probate/administrative processes. Selecting the authorized representatives that you seek is an important decision, and you can base your selection on several considerations, including:
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Trustworthiness and reliability;
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Availability and willingness;
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Respect for your wishes;
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Good communication skills;
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Local proximity;
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Understanding as to estate financial matters; and
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Neutrality and impartiality.
Beneficiaries
Beneficiaries can be individuals or entities (businesses, nonprofits, etc.) directed to receive assets from your estate. Beneficiaries can be family members, friends, as well as organizations, and others. It is important, and your determination, as to selecting beneficiaries for your Will based upon your family status to include your relationship with direct/current family members and extended family members. This will then set forth your choices to align with your intentions and Will distributions. You can also decide how your heirs and or beneficiaries will inherit your assets by way of direct bequests, and or through a trust, and or other ways to address the current needs and circumstances of each beneficiary.
Distribution of Assets
Distributions of estate planning is a primary matter. The distribution of your assets and as to how you seek your estate assets to be shared is primary. You may seek equal division among beneficiaries, and or specific bequests for same as to assets and or personal items. Your desires and the matters as to any of your beneficiaries can also address to settle debts, payoff taxes, administrative costs, etc.
Special Requests & Other Matters
Within your estate plan you can also address and convey your personal special requests, such as funeral arrangements, certain personal items, pet matters and preservation of a of any nonprofit or other matters. These estate details can be outlined within your Will as well as a “Love Letter” so permitted in New Jersey to ensure your wishes are memorialized. Consider also setting forth nonprofit and or charitable donations into your estate plan documents to support same to include personal gifts to individuals or organizations.
Living Will/Healthcare Power of Attorney & Durable Power of Attorney
A full estate plan includes the above refenced documents as well. They address your matters should you be not able to do so while you are still alive. A living will & healthcare directive, along with a healthcare power of attorney are also important estate plan documents that address your matters, medical preferences and end-of-life matters as well. These important documents guide your family and or authorized representatives as to your medical matters, and other related personal matters, as to medical decisions and any life sustaining treatments, incapacity, and as to “pulling the plug” should your health matters be untreatable. Preparing and using the documents entrusts your family and or other authorized representatives to make financial and healthcare decisions on your behalf during any critical health or other matters.
If You Die Without a Will, Who Gets Your Estate Under New Jersey Laws?
When no will exists, the statutes of New Jersey provide for the distribution of property to heirs, which are know and referred to as the laws of “intestate succession.” How property may be divided if there is no will is set forth in the chart below, where an estate is distributed in New Jersey if you do not have a Will. If you die without a will as a resident of New Jersey, state law provides the manner for distributing your property, and your net value of your estate after deduction of debts, taxes and family exemptions, etc., will be distributed to your heirs as follows:
- Real estate and other property owned jointly by husband and wife are automatically owned by the survivor spouse.
- Real estate and property with a beneficiary designation go to the person designated as the beneficiary.
- A surviving wife or husband receives the entirety of the remaining estate if they have common descendants (children) born or legally adopted while the husband and wife are legally married. If the decedent has descendants and a surviving spouse but the descendants are from another relationship, separate from the surviving spouse then the surviving spouse is entitled to the first 25% of the decedent’s Estate but not less than $50,000 or more than $200,000. Thereafter 50% of the remaining assets of the decedent’s estate go to the surviving spouse and 50% is divided among the surviving descendants (children) equally. If the decedent leaves a surviving spouse, no children but a surviving parent(s) then the surviving spouse is entitled to 25% of the descendant’s estate but not less than $50,000 or more than $200,000. The remaining assets of the intestate estate go 75% to the surviving spouse and 25% to the decedent’s parents. If there are no surviving children or parents then the surviving spouse gets 100% of the decedent’s estate.
- A child or children receive one-half of the estate balance divided equally, by representation.
- If there are Grandchildren, they take their deceased parent’s share of the estate equally
All matters are somewhat unique and not all estate cases are covered here. Recall that the State of New Jersey takes your property if you have no Will and you do not have a spouse, child or descendants; parent(s); brother(s) or sister(s) and their descendants; grandparent(s); uncle(s), aunt(s) or their children; or their grandchildren. Note that if any person fails to survive a decedent by 120 hours, he or she is deemed to have predeceased the decedent for purposes of intestate succession. New Jersey law determines who inherits the estate of a person dying without a Will, determined according to kinship/bloodline. When there are no known relatives, the estate is in escheat and all property goes to the State of New Jersey. Escheating to New Jersey is not a good thing, and to review how to avoid same, call 856.428.5577 or e-mail me [email protected] and set up an office consultation at your convenience.
DiMedio Law is a New Jersey law firm whose practice includes Business Services & Succession Planning and related Real Estate and other matters to include Estate Planning & Administration. Contact us at [email protected] or call us at 856-428-5577.
DISCLAIMER: This advisory is for general information purposes only. It does not constitute legal advice, and may not be used and relied upon as a substitute for legal advice regarding a specific legal issue or problem. Advice should be obtained from a qualified attorney licensed to practice in the jurisdiction where that advice is sought.
