Last Updated on July 13, 2024 by Asfa Rasheed
Estate planning is meant to protect your family and financial assets throughout your lifetime. It ensures your family can gain maximum benefits from your financial legacy. Also, a carefully made estate plan can avoid family conflicts that could strain family relationships for good. Without an estate plan, family members could argue over inheritances or matters that involve the welfare of a senior loved one. By working with a Princeton NJ estate planning lawyer, you can make a plan that addresses all possibilities.
Families can prevent inheritance and estate disputes, which tend to be predictable. Careful planning ensures resolves vital issues your family members could face and may not agree about. Because of this, your plan can be the best gift you can give to the people you love and care about. It can help them maintain positive relationships and prevent your family from falling apart. Your estate plan must address the following main issues for your loved ones:
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Estate Administration
Your estate plan should include designating an estate administrator. Without valid estate documents, state law applies and will be used as basis for deciding who administers your estate. Members of your family may fight over such privilege.
Litigation is not cheap. It can decrease your estate’s assets and can cause a permanent fracture to family relationships. Without an estate plan, your estate may go through probate, which makes your assets and family conflict public information.
Beneficiary Designation
The majority of estate disputes revolve around who inherits certain properties. A solid plan will address estate distribution in detail, including personal property and financial assets. Also, your estate plan should determine the disposition of your real estate such as the family house or vacation home.
If you do not have an estate plan in place, the court will decide how your property will be distributed. Often, this won’t be your desired distribution method. Also, it may not be the way your loved ones think the property must be split, creating conflicts among them.
Long-Term Care and Decision-Making
Your estate plan must include giving you protection during your lifetime. Should you endure a catastrophic injury in an accident or become incapacitated in the future, your plan must address who will take care of you and handle your finances. Your estate plan must express your medical care wishes and who you want to make medical decisions on your behalf. Without a plan, a judge will appoint a guardian or a conservator, who could be someone you wouldn’t pick.
Read More: Funding the Future: How to Set Up a Trust Fund for Your Child
