New Jersey divorce cases have various pathways, each case as unique as the last. Yet, most cases often urge individuals to handle many legal issues, maybe even some you have not yet thought about. The division of property and debt and money, for example, can be complex and overwhelming. Divorce can be so demanding that people get burned out and end up missing certain aspects of the proceedings, such as reviewing the existing estate plan or the formulation of a new one. Estate planning does indeed play a role in divorce, as it is crucial for the protection of you and your dependent family members.
Key Takeaways
- Estate planning involves organizing assets and affairs to ensure wishes are fulfilled after death or incapacity, minimizing family conflicts.
- Wills, Trusts, Healthcare Directives, Powers of attorney, beneficiary designations, and tax planning are crucial elements of estate planning.
- During divorce, spouses typically retain beneficiary rights until proceedings conclude, highlighting the need to update estate plans to exclude former spouses.
What is Estate Planning?
Estate planning refers to the process of arranging for the management and distribution of an individual’s assets and affairs in the event of incapacitation or death. Additionally, an estate plan ensures that one’s wishes regarding their healthcare, finances, and property can be fulfilled in a way that minimizes struggles for the remaining family.
Estate planning typically includes:
- Will: A legal document that outlines how a person’s assets and property should be distributed after their death. It may also designate guardians for minor children.
- Trusts: Legal arrangements that allow a Trustee to hold and manage assets on behalf of beneficiaries according to specific instructions. Trusts can help avoid probate, provide for minor children, and provide ongoing support for beneficiaries.
- Healthcare Directives: Documents such as Living Wills and healthcare proxies that outline a person’s wishes regarding medical treatment and appoint someone to make healthcare decisions if he or she is unable to do so.
- Power of Attorney: A legal document that designates someone to make financial or medical decisions on behalf of the person creating the power of attorney if they become incapacitated.
- Beneficiary Designations: Ensuring that beneficiary designations on retirement accounts, life insurance policies, and other accounts are up to date and align with the individual’s estate plan.
- Tax Planning: Strategies to minimize estate taxes and other taxes that may be incurred upon death or during the transfer of assets.
Spouses Have Authority and Rights to Estate During Divorce
In New Jersey, your spouse will most likely remain the beneficiary of your estate until the divorce proceedings have been completed. In cases where there has been no estate planning, your spouse will be able to receive a large portion of your estate after fulfilling various financial obligations.
Creating an estate plan is the best way to ensure that the other party does not receive a portion of your estate against your wishes should you unexpectedly pass away. With an estate plan, you can name the beneficiaries and how your personal resources may be used. This is an important step, especially if you have not planned anything yet. If you do have an existing estate plan, it may be a good idea to review what has been listed and update any information, if necessary.
For example, you may wish to remove the name of your ex-spouse from documents and arrange it so that your financial accounts are turned over to your children instead.
Children Receive Different Protections
Although it may seem that there is less of a chance for a child to be without both parents after a divorce, it is always wise to name guardians, just in case. Having the names of suggested guardians within the estate plan can alleviate some of the stress should one or both parents pass unexpectedly. Additionally, you need to think about the inheritance the child or children will receive and how it will be divided up.
Minors will not have legal access to their inheritance until they are old enough. As such, if there is no one assigned to take control of the finances until the minor child is of age, the remaining parent may be able to access the funds. Therefore, if you wish to leave resources for your children, make sure that is listed within your Will or add a Trust to your estate plan.
Contact a Family Law Attorney in New Jersey Today
Estate planning is a vital process that empowers individuals to take control of their legacy, protect their loved ones, and ensure their wishes are carried out long after they’re gone. By carefully considering their assets, goals, and family dynamics, individuals can create a comprehensive plan that provides peace of mind and preserves their hard-earned assets for future generations.
Ready to secure your legacy and protect your family’s future? Contact Ziegler Law Group, LLC today to discuss your estate planning needs with our experienced team of attorneys. Whether you’re considering drafting a Will, establishing Trusts, or navigating complex tax issues, our dedicated professionals are here to provide personalized guidance and support every step of the way. Don’t wait to safeguard what matters most. Call us at 973-533-1100 or visit our website to schedule your free consultation today.
