After the passing of a loved one in New Jersey or elsewhere, the heirs to the estate of the deceased may sometimes find themselves caught up in litigation. In some cases, this may be because the deceased did not undertake proper estate planning. However, in other cases, litigation may result either from circumstances that could not be foreseen or due to some unique aspect of the estate. The latter appears to be the case with one battle that erupted recently between the heirs to the inventor of Pepsi's formula and PepsiCo.
Handling the family farm inheritance dilemma
Estate planning can differ wildly according to each person's unique needs and desires. For example, New Jersey farmers may run into special problems when attempting to leave the family farm behind. In fact, any kind of inheritance can have special considerations, but many of these problems can be mitigated, if not eliminated, with proper estate planning.
Concerning farms, great difficulty arises with trying to bequeath it to the next generation, and this difficulty only increases as time goes on. This may be due to several reasons, most of which involve conflict between family members.
New Jersey heirs: After you inherit, what's next?
When someone passes away in New Jersey or elsewhere, surviving family members are often left with collections of stamps, furniture and stacks of old magazines that have accumulated over many years. Collectibles can be difficult to sort through for heirs in terms of monetary and sentimental value. However, modern technology can help with inventorying and determining the value of one's inheritance. Nevertheless, deciding which family members receive what is an ongoing problem.
When faced with this problem, the initial task is to create an inventory of items. Taking pictures, getting dimensions and documenting everything are wise first steps. It is important to gather all of the information and centralize it in a single place. Free software and applications enable one to easily complete this task, which can even be accomplished with a smartphone.
New Jersey residents: estate planning mistakes to avoid
Many residents of New Jersey and nationwide may, at one time or another, have to look at estate planning for their parents and themselves. Many financial planners believe that some individuals who are otherwise in good shape financially either lack judgment or use poor judgment when it comes to their personal estate planning. They believe that misjudgment leads to omissions and poor estate-planning decisions.
Unfortunately, some people err simply by not having a plan at all. When an individual dies without a will, the state takes over to determine how assets are to be divided. New Jersey and other states have intestacy laws that determine which surviving family members share in the estate of such an individual. And while some make the mistake of avoiding estate planning altogether, others resort to online, do-it-yourself estate planning options. While these boiler plate documents may make sense in some situations, they are rarely individualized to fit the specifics of one's personal and financial life.
Getting a handle on healthcare decisions
Many Camden County, New Jersey residents know what goes into planning for worst-case scenarios. For example, when a man or woman is incapacitated and cannot voice their wishes for medical treatment, they need to appoint someone to make those decisions on their behalf. This is one of the important elements of estate planning.
However, a vague knowledge of how to go about doing this is not enough. That is why everyone -- not just the elderly -- should get a firm grip on what measures to take in order to ensure a trustworthy person will carry out their wishes.
Important estate planning decisions couples need to consider
New Jersey couples approaching retirement or who are currently retired may benefit from consulting a financial planner to review any investments that fund their estate plan.
Such advice can help couples learn how to move investments around to produce a higher yield and potentially earn more interest per year. However, there are other questions that are not generally addressed by only working with a financial planner.
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Changes in death taxes lobbied across nation
Most people have probably not opted to have a conversation with an attorney to discuss the intricacies of estate planning. Let's face it; having a discussion about death isn't one that most people look forward to having. That said, most people in New Jersey may not realize that when they die, depending on the size of the estate, an inheritance and estate tax must be paid to the state
An inheritance tax must be paid by an heir to the state upon a person's death. How much is paid to the state depends on the relationship of the heir to the decedent.
Beware of passing debt to heirs and beneficiaries
When New Jersey consumers work with an attorney to plan an estate, they must think about the future as well as any unforeseen events. It can sometimes feel like a "what-if" strategic game. That said, it is important to plan for the unknown and when that occurs to feel comfortable with what we are leaving behind for our loved ones.
Consumers must make decisions such as which assets to pass on to heirs and beneficiaries. Once they have planned their estate, many things can and will change. For example, the housing market collapse caused many consumers, including seniors, to lose much of the value that was tied up in their homes. Changes in an estate's financial health could affect its heirs and beneficiaries.
NJ residents consider impact of blended families on their estate
It's not a new statistic that over half of all marriages end in divorce. What's more is that of those divorced individuals, 75 percent of them will opt to walk down the aisle again, bringing with them the fruits of their first marriage -- their children.
With the changing dynamics of family structures today, more New Jersey couples are finding that with their new family also comes a new challenge for estate planning.
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Ethics committees advocating on behalf of elderly patients
More individuals are sitting down and speaking with family members about their personal wishes for end-of-life care. However, there are still countless others that never memorialize their desires in a planning document, such as a living will, and family members and staff at long-term care facilities, like nursing homes, end up at an impasse when conflict arises.
Problems such as these are becoming more prevalent as baby boomers are hitting retirement age and are moving to long-term care facilities. In fact, according to sources, the state of New Jersey is one of the highest states in spending for end-of life care.
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