How young people can protect wealth and loved ones with estate planning
Millennials tend to think more about how to preserve their wealth than the generations before them and are more likely to have an estate plan than their older counterparts. If you are a younger person who does not have an estate plan or who would like to change your existing one, there are several things you should keep in mind.
Work With Professionals
While there is plenty of free advice and do-it-yourself software for estate planning available online, there are several good reasons to work with an estate planning lawyer. There may be strategies that you are unaware of that an attorney can explain and help you implement. Working with an attorney can also reduce the likelihood of errors that could lead to conflict among your heirs. If your estate planning documents are not prepared properly or your intent is unclear, your family might even end up in a legal dispute in a New Jersey courtroom. Working with an attorney can help you feel more confident that your wishes will be carried out as you intend.
Creating a Will
Your last will and testament is a good place to begin when it comes to estate planning. A will allows you to name an executor and identify what you want to happen to your assets. Another advantage of a will is that it is an easy way for you to name a guardian for your minor children.
Providing for Dependents
Naming a guardian is just one way of providing for your children or other dependents. Minors cannot inherit property, so you can put money or other assets in a trust for them and appoint a trustee to manage it. A life insurance policy can ensure that your family can carry on without your income.
Your Medical Care
Estate planning is not just about your assets. It is also important to think about the kind of medical care that you want and who you would want to make those medical and financial decisions for you in case you are incapacitated. There are a few different elements to this aspect of your estate plan. A living will or medical directive states your wishes for end-of-life care. This can take the burden off your family, who will otherwise have to guess what your wishes might have been. A medical power of attorney appoints someone to make medical decisions for you if you cannot. A financial power of attorney gives someone the ability to handle your financial affairs on your behalf.
The Power of Trusts
There are other reasons to use a trust besides providing for minor children. Trusts are powerful tools that can help preserve wealth across generations, protect assets from creditors, allow you to support charities and do many other things. They also allow you to keep what you do with your assets private, unlike a will, and do not have to go through the probate process. You may want to consider one or more living trusts, which you create while you are still alive and that you can alter or even cancel if you wish. An estate planning attorney can help you better understand what trusts can do in your particular situation.
Digital Assets
You are probably already relatively savvy about digital assets as part of the millennial or Gen-Z generations, but it is still easy to overlook these in your estate planning. Here are a few examples of digital assets you may need to address:
- cryptocurrency
- social media accounts
- photographs
- online subscriptions
- digital financial accounts
Be sure that someone knows where to find your passwords and any other critical information about these accounts.
An estate planning lawyer can discuss these and any other issues related to your estate planning needs and can help you determine which strategies are best for you. Contact the Knee Law Firm in Paramus at 201-996-1200 and let us help you make the best estate planning choices for you and your loved ones.