Estate planning is anything but a simple process. Valuation of assets, determining the debts, designating beneficiaries, etc., can take up a lot of time and energy. Moreover, if you are an inexperienced person with no in-depth knowledge about estate planning, you are bound to make mistakes or get stuck somewhere.
However, this is quite normal, and you do not have to feel left out for not knowing all the facts. Instead of googling questions every 5 minutes, hire an estate planning attorney South Jersey to lessen your burden. Meanwhile, here are answers to some of the most common queries related to estate planning.
Answering common questions about estate planning
I do not have much money or assets. Do I still need to plan?
It is a wide misconception that only wealthy people need to plan their estate. Estate planning is essential and beneficial for everyone, whether you have one or ten cars. It is something that everyone needs regardless of their financial status, age, health, or value of assets. Estate planning makes sure your assets are handed over to people who deserve them. It can also make sure the right people make decisions on your behalf.
What happens if I die without planning my estate?
When you die without creating an estate plan, the law takes matters into its own hands. The court decides what happens with your assets, who gets what, and if anyone even gets anything. Keep in mind that different states have different rules about distributing a deceased person’s assets in the absence of a will.
What is the difference between a will and a trust?
Wills and trust have similarities as both of them come under estate planning and are parts of a complete plan. Here are the main differences between them.
- Trusts can be effective immediately after creation, while wills become effective after you pass away.
- Trusts cover assets included in it, while wills cover everything you own.
- Trusts are private records, while wills are public.
- Trusts can distribute the property in it before you die. However, the assets in your will are only distributed after your death.
When is the right time to make updates to my estate plan?
There are certain times in your life when it becomes mandatory to go through your estate plan and make changes. These may include the following:
- Changes in tax laws
- Death of a spouse
- Change in assets
- Children, by birth, adoption, or marriage
- Change in status of a guardian, trustee, or executor
Hiring an attorney in South Jersey can help.