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Compassionate Estate Planning Lawyers Work With Clients to Protect Their Legacy

Estate planning refers to the process of designating how assets get distributed upon a person’s death. However, an estate plan does more than specify where assets end up. A comprehensive New Jersey estate plan can also preserve the value of an estate by reducing exposure to Federal estate and state inheritance taxes and limiting the number of assets subject to probate. In Pennsylvania, an in-depth estate plan can reduce the amount of both Federal estate and state inheritance taxes preserving more assets for your beneficiaries.

When someone passes on, there are a variety of ways their assets might get distributed. If the person does not have a will, the New Jersey or Pennsylvania intestate laws will dictate how their assets are allocated among loved ones. Unfortunately, these rigid laws apply without consideration of unique family circumstances, and rarely effectuate a family’s wishes. By creating a will; however, an individual can maintain control over their assets after they pass.

Using Wills to Maintain a Legacy

A will is the essential element of a New Jersey or Pennsylvania estate plan. A well-drafted will should contain detailed instructions as to how an individual’s assets should be divided among the individual beneficiaries. In addition, a will should name an executor, who will carry out the directives contained in the will. If effectively drafted, a will can ensure that a family maintains full control over familial assets for future generations. Wills, however, have limitations.

Importantly, wills do nothing to avoid the probate processor estate taxes. Probate refers to the formal process in which the court validates a deceased person’s will. Once the will is probated, the surrogate’s court provides short certificates to allow the executor access to the decedent’s accounts. The executor will gather all the assets, pay any expenses including any tax, and distribute the estate assets according to the terms of the will. Currently in New Jersey, there is no estate tax. This may be reinstated bringing estate tax back to New Jersey. This can be costly to your estate if you do not have a properly written will to minimize such tax. Although New Jersey does not currently have its own estate tax, some beneficiaries must pay an inheritance tax. For larger estates, reducing the federal estate-tax liability may also be an essential consideration.

Creating a Trust to Preserve an Estate’s Value

Through the use of a trust, families may be able to reduce an estate’s exposure to estate and inheritance taxes and decrease the number of assets that must go through the probate process. A trust refers to a legal relationship in which one person, the grantor, places property in the care of another person, the trustee, for the benefit of a third party, the beneficiary. Trusts are commonly used to transfer assets to loved ones upon the owner’s death, avoiding the probate process. Irrevocable trusts can also limit the amount of estate and inheritance taxes by transferring ownership of certain assets to the trust before the owner’s death. Trusts should always be considered if you own out of state real estate in order to avoid probate in the other state in which the real estate is located.

Trusts can also be used to protect assets if an individual requires long term care.

Powers of Attorney and Living Wills

Families should consider planning for sudden and unexpected incapacity by drafting powers of attorney. A General Durable Power of Attorney authorizes named individuals to make financial decisions on behalf of the Principal. A General Durable Power of Attorney is quite long.

Separate powers of attorney can be established for banking and security which makes it easier for your agent to use. The final element of an estate plan relates to later-in-life and end-of-life decisions. For example, by creating a living will, families can clarify their desires regarding the use of life-supporting medical treatments. Having such a plan in place can significantly ease what is undoubtedly a challenging time for loved ones.

It is important to provide your living will to your primary care physician, so it is available if needed in case of an emergency. At Begley Law Group, we do this for you upon execution of your living will. Absent a General Durable Power of Attorney and Living Will, a person must file a court action to obtain legal guardianship over an individual to make these important decisions and act on their behalf. This is often time consuming and costly.

At Begley Law Group, our compassionate New Jersey and Pennsylvania estate planning lawyers work closely with our clients to ensure that their wishes are properly documented. With over 80 years of experience helping families preserve their legacies, we are a trusted resource for anyone with estate planning needs.

Helping Families Administer Estates and Trusts

The purpose of estate planning is to avoid the uncertainties that can lead to disagreements among family members. However, ensuring the proper administration of an estate can be complex, and at times, the decedent’s intentions may not be clear. It is in these situations that the possibility of litigation may arise.

When the threat of litigation looms, it is imperative individuals retain an experienced New Jersey trust and estate lawyer to help protect their interest. The inherent structure of a trust places legal title to trust assets with the trustee. However, the trustee owes all beneficiaries a fiduciary duty, including a duty of loyalty, a duty of prudence and subsidiary duties. A trustee can be held liable for a breach of their fiduciary duty, and beneficiaries can recover improperly distributed assets if they are traceable back to the trust.

At Begley Law Group, we skillfully represent beneficiaries, executors and trustees in all types of estate and trust disputes. With over 80 years of collective experience, our team of New Jersey trust and estate lawyers have unrivaled knowledge.