Estate Planning Lawyer Teaneck, NJ
Estate planning entails creating a plan for who will receive your assets later on. It makes it known how you want your affairs to be taken care of after you pass away or if you are unable to handle them on your own for a medical reason. While it can be a complicated process, our team at Kaplan Law Practice, LLC aims to make it that much easier. There are many misconceptions about estate planning, such as only the rich and famous have estate plans, or you only need one if you have an exorbitant amount of money or assets. Neither of these are true, as anyone who has something that they cherish, whether of high value or not, is worth securing so that you who want to receive them does when the time arrives. If you want to get started on your estate plan, please reach out to our Teaneck, NJ estate planning lawyer today!
Your First Step To Estate Planning
Estate planning is the process of making it clear, and legally-binding, how you want your estate to be distributed once you pass on or become incapacitated. There are many aspects of estate planning, but your first step is to write a list of your assets. Your estate is made of the property you own, including cars, cash, jewelry, clothes, investments, houses, retirement accounts, savings, land, artwork, sentimental items, and more. Take some time to make an inventory of your belongings and personal items. This is the first step in establishing your estate plan.
Documents You May Find Useful
In your complete estate plan, there are several documents that you can use to ensure all of your wishes are followed in the future. Documents such as guardianship, will, trust, financial power of attorney, durable power of attorney, advance healthcare directive, living will, and medical power of attorney will help you write out your preferences for asset distribution while protecting your estate now. Our dedicated estate planning attorney can discuss with you what your needs are and then recommend which documents to use that will serve you best.
Understanding Tax Implications
Much of estate planning is done while considering tax implications. The goal is to leave the most amount possible to your beneficiaries. We can strategize how to make sure your estate is least affected by taxes. When it comes to estate planning, there is estate tax, inheritance tax, and gift tax. Estate taxes are imposed on estates that are worth more than a certain value. Inheritance taxes are paid by someone who inherits money or property from the deceased. Lastly, gift taxes are applied on gifts that go above a set dollar amount. The giver of the gift, not the receiver, is responsible for paying this tax.
Kaplan Law Practice, LLC
Planning for the future of your assets is important so that those you care about the most receive a part of you after you have passed on. Estate planning can be simplified with support from our team at Kaplan Law Practice, LLC. If you are interested in learning more, our Teaneck estate planning attorney is ready to assist you!
Estate Planning To Mitigate Assets That Pass Through Probate
Minimizing the assets that must go through probate is one of the most important considerations when it comes to estate planning. Probate can be a time-consuming and expensive legal process, often delaying the distribution of assets to heirs. Fortunately, through careful planning, we can reduce the portion of an estate that is subject to probate, ensuring that more assets transfer smoothly to beneficiaries. In this discussion, we’ll explore several strategies that can help mitigate probate exposure. As a Teaneck, NJ estate planning lawyer, we recognize that effective planning is key to avoiding unnecessary complications.
Revocable Living Trusts
One of the most effective tools for avoiding probate is the revocable living trust. By placing assets such as real estate, bank accounts, and investments into a trust, those assets are removed from the probate process. We can still retain control over the trust while we’re alive, and upon death, the assets are distributed to the beneficiaries without having to go through probate. This approach not only speeds up the distribution process but also keeps details of the estate out of the public record, providing privacy for the beneficiaries.
Joint Ownership Of Property
Another way to minimize probate exposure is through joint ownership of property. When property is owned jointly, such as with a spouse, the surviving owner automatically assumes full ownership upon the death of the other, bypassing probate altogether. This applies to jointly owned homes, bank accounts, and investment accounts. By ensuring that high-value assets are owned jointly, we can simplify the transfer of ownership and reduce the administrative burden on our heirs.
Beneficiary Designations
We also encourage reviewing beneficiary designations on retirement accounts, life insurance policies, and payable-on-death accounts. These assets typically do not go through probate if the proper beneficiary is named. It’s crucial to regularly update these designations to reflect current relationships and intentions, as the listed beneficiaries will receive the assets directly.
Gifting During Lifetime
Another effective strategy for reducing probate is gifting assets during our lifetime. By giving assets to loved ones or charitable organizations before death, we can reduce the size of the estate, thereby minimizing the portion subject to probate. Annual gifting is a great way to pass wealth to the next generation while avoiding probate and possibly reducing estate taxes as well.
Planning For A Smooth Transfer
Estate planning involves several layers of decision-making, all aimed at ensuring our loved ones are cared for without unnecessary delays or expenses. By using trusts, joint ownership, and thoughtful beneficiary designations, we can significantly reduce the number of assets that must pass through probate. In the middle of these considerations, a Teaneck estate planning lawyer can help guide us toward the best choices for our specific circumstances, ensuring that our plans are tailored to the needs of our families.
Reducing Probate Exposure
Knowing that assets will be transferred smoothly without the lengthy and costly probate process is something that effective estate planning can offer. We are here to help you create a comprehensive plan that addresses your goals and protects your loved ones. Licensed throughout New York and New Jersey, our team at Kaplan Law Practice, LLC, is trained to develop strategies to mitigate probate and ensure your assets are distributed according to your wishes. Our attorneys have many years of experience in handling these delicate matters, contact us today to schedule a consultation with a Teaneck estate planning lawyer and take the first step in securing your family’s future.
Benefits Of Including A Living Trust In Your Estate Plan
There are many advantages to including a living trust in your estate plan as they can offer a practical approach for both you and your beneficiaries. A living trust helps you manage your assets during your lifetime and can streamline the process of passing them to your heirs. Here, we’ll look at the benefits of including a living trust as part of a comprehensive estate plan. Consulting with a Teaneck estate planning lawyer serving New York and New Jersey can be a helpful first step to make sure this approach fits your needs.
1. Control Over Asset Distribution
A living trust gives you greater control over how your assets are distributed. Unlike a standard will, which typically distributes assets in one step, a living trust allows you to set specific terms and timelines for when your beneficiaries will receive their inheritance. For instance, if you want certain assets to go to a beneficiary at a particular age or to be used for specific purposes, a living trust can outline these conditions. This level of customization can help you fulfill your intentions more precisely.
2. Avoidance of Probate
One of the most widely recognized benefits of a living trust is its ability to avoid probate. Probate can be a lengthy and often costly process that delays beneficiaries’ access to assets. With a living trust, assets can be transferred directly to beneficiaries without going through probate, saving both time and expenses. Avoiding probate can also offer privacy, as the distribution of assets is not made public, unlike in a probate process.
3. Protection in Case of Incapacity
A living trust provides protection if you become incapacitated. If you are unable to manage your finances due to illness or injury, a designated trustee can step in to manage your assets on your behalf. This feature of a living trust can offer peace of mind, knowing that your affairs will be handled according to your instructions if you’re unable to make decisions for yourself. For families with complex situations or business assets, this can be particularly beneficial. Consulting a Teaneck estate planning lawyer can help ensure that the trustee arrangement aligns with your overall plan.
4. Flexibility and Revocability
A living trust is generally revocable, meaning that you can adjust or dissolve it if your circumstances or intentions change. This flexibility allows you to respond to significant life events, such as the birth of a new family member or a shift in financial status. Living trusts can adapt to your evolving needs because adjustments can be made without affecting the trust’s primary framework.
5. Reduced Risk of Legal Challenges
Living trusts tend to face fewer legal challenges compared to wills. A trust requires a more formal setup process, which can reduce the likelihood of disputes over its validity. This additional legal structure makes it less vulnerable to challenges from unhappy heirs, helping to safeguard your plans. It also minimizes the risk of extended disputes, which can drain financial resources and strain family relationships.
6. Faster Access to Inheritance for Beneficiaries
Because a living trust bypasses probate, beneficiaries often gain quicker access to their inheritance. This is especially valuable if you’re leaving behind assets needed for immediate expenses, such as mortgage payments or educational costs. A living trust can streamline this access, helping your loved ones avoid unnecessary financial stress during an already challenging time.
Building A Tailored Estate Plan With A Living Trust
Living trusts can be an attractive option for estate planning because of the many practical benefits they offer. From providing control and flexibility to reducing risks and delays, it can be a valuable addition to your plan. If you’re considering this option, a Teaneck estate planning lawyer can help you decide if it’s the right fit. Contact us today to discuss how we can support you in building an estate plan that reflects your needs. Our team has many years of experience handling delicate matters. Kaplan Law Practice, LLC, is available to help you explore your options and make informed decisions.