Along with a will, a trust if one is needed, a health care directive, and other documents which we have discussed on this blog, a New Jersey resident who is going through the estate planning process may want to consider creating a durable power of attorney. Under New Jersey law, a durable power of attorney allows a person, called a principal, to name a trusted loved one, called the attorney in fact or agent, to handle the principal's financial affairs.
Much of estate planning is focused on what happens after we are gone. A well-drafted will helps our loved ones through the transition, resolving difficult issues in advance and, hopefully, providing them with the resources to have easier lives.
Like other states, New Jersey allows residents to form limited liability companies, or LLCs. Usually, a person would form an LLC because he or she is interested in starting a business and wants the protection from creditors that the LLC offers.
This blog has previously discussed that there are ways a New Jersey resident can pass property along to their loved ones without having to draft a will or go through probate. In addition to trusts, people can use vehicles like jointly held real estate, joint bank accounts and other means to pass along property.
Many New Jersey residents own real estate together with other people. It is therefore important for people to understand how real estate gets passed down when an owner of the property dies.
A previous post on this blog talked about Medicaid planning. This subset of estate planning can be an important part of a New Jersey couple's overall financial strategy for affording the medical care they will likely need in their old age.
The concept of Medicaid planning has grown in popularity over the last decade or so. Many New Jersey residents may have heard about Medicaid planning but may not be fully aware of what it entails.
As many music fans in New Jersey may know, it has been about three years since the rock-and-roll legend Prince died at his residence in another state. He was 57 years old when he died.
Many residents of New Jersey have relatives and loved ones who face physical or mental challenges. The special needs of these loved ones can make it very hard for them to support themselves or even to live without constant assistance.
A previous post talked about a type of trust called a living trust. A living trust is a convenient vehicle for New Jersey residents who have wealth to hand that money down to the next generation. Oftentimes, the living trust in the long term can save a family the costs of probate and may have tax benefits as well.