Estate Planning: Not Just For the Rich

If you are like many other American families, the current tax legilsation passed this month regarding the estate and gift taxes doesn’t particularly interest you. However, while the "permanent" legislation generally only affect the extremely wealthy, don’t be fooled. You still need an estate plan for yourself and your loved ones.  Remember, New Jersey has an estate tax as well and the exemption is only $675,000.00.

No matter your net worth, it’s important to have, at the bare minimum, a basic estate plan. Such a plan ensures that your family and financial goals are met after you die and may include components such as a Will, a Durable Power of Attorney, a Living Will or Medical Power of Attorney, and possibly even a Trust.

So, now that you know you need some sort of estate planning, you may be wondering where to begin. A good place to start is taking inventory of your assets. Your assets include your investments, retirement savings, life insurance policies, and real estate or business interests.  For most people living in Union county New Jersey, the sum of the value of the house, retirement plan and life insurance are enough to cause a New Jersey estate tax without further planning. 

Then ask yourself three questions:  Whom do you want to inherit your assets? Whom do you want handling your financial affairs if you’re ever incapacitated? Whom do you want making medical decisions for you if you become unable to make them for yourself?

Now, be sure to consult with your estate planning attorney to ensure your estate plan is properly drafted and executed. Preparing your own estate plan is not a safe DIY project, especially when the protection of all that you have and everyone you love is at stake.

For a free initial consultation please contact me via my website where you can also get more information. www.millsestateplanning.com.