Legal Question in Wills and Trusts in New Jersey

Re: Access to Funds

If you grant someone else power of attorney, that person may handles oyur accounts in your best interests while yor are incapacitated (hospitalized). In case of death, you can either use a will or a lifetime trust. With a will, you don't make any changes to your accounts while you are alive, but your beneficiaries must probate the will after you die. With a lifetime trust, you must place your accounts in the name of the trust (as well as adhere to trust formalities, file annual trust tax returns, etc.), but upon your death, the accounts would automatically transfer to your beneficiaries without going to court for probate.

Feel free to contact my office for a free consultation.

Re: Access to Funds

Everyone should have a Durable Power of Attorney, that appoints at least one other person whom you trust to act on your behalf when you are not able. The Durable POA takes care of your financial matters.

Everyone should also have Health Care Power of Attorney (it may be called by other names), again appointing trusted people to carry out your health care decisions when you are not able to speak for yourself.

After death, your assets will go as directed under your Will, or you may have a lifetime trust. The latter requires that you create the trust, fund it, take title to assets from that time on in the name of your trust, and observe all formalities of keeping assets in the trust. You would name trusted people to be the trustees and to deal with the trust assets when you are not able or after you die. This does not eliminate the need for a Will, because there are usually assets that are not in the trust, plus a Will provides for custody and guardianship of minor children.

You should consult with a local estate planning lawyer to help determine your needs and goals and to prepare appropriate documents for you.

Re: Access to Funds

You have several choices. I strongly recommend you immediately create a Durable Power of Attorney, which will enable the holder thereof to assume charge of your assets in the event of any disability that you may suffer, and become effective simultaneous with the disability. It can also be limited to its effectiveness to such times when you are unable to act for yourself. The Power ends with your death, so it cannot be effective to handle assets when you pass away. I also suggest a Living Will (Health Directive) in which you appoint someone to be your health care proxy if you are unable to communicate your wishes. Finally, you could provide your estate disposition several ways: By Will (which would require probate on your demise), a Living Trust in which you control everything, but provide for asset distribution on your demise (and which avoids probate), or POD (Payable On Death) designations to bank accounts, etc. Some assets, like life insurance and retirement plans, allow you to name a beneficiary to receive the proceeds upon your death. I believe this could also be done with a auto registration. My overall suggestion is to have 4 documents: Power of Attorney, Living Will, Living Trust and simple Will (to cover things like a car, personal assets like clothing, jewelry, furniture and furnishings) to catch any remaining assets that would not be placed in the trust. Life insurance and retirement plans can be covered by the beneficiary designation. If you need help creating these documents, contact me as I do these regualrly.