What are the three fundamental documents everyone needs for estate planning?
Regardless of age or financial status, three core documents are essential: a will, an advanced medical directive, and a general durable power of attorney. A will ensures that assets are distributed according to one’s wishes and appoints an executor to carry out their instructions. The advanced medical directive combines living will and healthcare power of attorney provisions, enabling someone to make medical decisions if you’re incapacitated. A general durable power of attorney allows someone to manage your financial and personal affairs if you become unable to do so.
Why do people avoid estate planning, and what are the consequences?
About half of Americans avoid estate planning for various reasons – from superstition to discomfort with discussing death. However, failing to plan leads to involuntary planning through state intestacy laws, which rarely align with personal wishes. Without proper documents, families may face expensive guardianship proceedings, costing upwards of $5,000 in straightforward cases and potentially millions in contested situations.
How does probate work in New Jersey, and why is it considered the easiest state for probate?
New Jersey has the most straightforward probate process in the United States. The executor only needs to make a 20-minute appointment with the county surrogate, presenting the original will and death certificate. With a filing fee of approximately $150-175, the process can begin just 10 days after death. Requirements include notifying beneficiaries within 60 days and making the will available upon written request.
What are the dangers of DIY estate planning and “trust mills”?
While online legal services might work for the simplest estates, they often fail to address complex situations like blended families or special needs beneficiaries. “Trust mills” – non-attorney organizations – often sell unnecessary living trusts and use high-pressure tactics to sell additional financial products. These services typically charge as much as or more than qualified attorneys while providing inadequate protection.
How can improper estate planning affect special needs beneficiaries?
Incorrect estate planning can inadvertently disqualify special needs individuals from crucial government benefits, particularly Medicaid. Professional legal guidance ensures inheritances are structured properly to maintain eligibility for needs-based benefits. While fixing these issues through court reformation is possible, it’s significantly more expensive than proper initial planning.