When you die without a will or a basic estate plan in New Jersey, the responsibility of distributing your assets falls on the state. This may lead to extra expenses or delays as far as when your beneficiaries get your assets. Having a basic estate plan in place helps eliminate these hurdles and hardships. It may, too, give you peace of mind that your legacy is going to end up where you want it.
According to Bankrate, your estate plan need not be highly complex to be effective. Instead, you may want to create an estate plan that includes the following three components.
Your will lets you express who you want to take ownership of your assets after your death. It is often the main component of an estate plan. While you may address what you want to happen to your assets in your will, you may also use it to outline your desires in other areas. For example, you may use it to appoint someone a guardian over any minor children you may have.
A health care directive
An advanced health care directive enables you to dictate your wishes when it comes to medical treatment if you become incapacitated and are unable to vocalize your preferences.
A power of attorney
A medical power of attorney allows someone you trust to make decisions about your health care. A financial power of attorney gives someone you trust power and access to your financial accounts and information.
Having these three components in your estate plan may lead to many benefits not only for you but for your loved ones.