For some of us, the term “estate planning” conjures up images of vast green lawns and Elizabethan-style mansions. Indeed, the primary definition of “estate” is “an extensive area of land in the country, usually with a large house, owned by one person, family, or organization.”
If your eyes just glazed over, give yourself a pinch and look at definition number two: “all the money and property owned by a particular person, especially at death.”
This is the definition I’m talking about, and it applies to everyone. Indeed, if you don’t create an estate plan, you are effectively telling the state, “I don’t care what happens to my possession, property, or money after I die. Do with it as you see fit.”
Is that really your choice? Of course not.
It’s a common misconception that estate planning is only for the wealthy. The real purpose of an estate plan is about control, not just wealth.
At SGW, we believe in helping everyday people at any asset level. We’ve created this guide for you.
What Counts as Your “Estate”?
Here’s a down-and-dirty list:
- Real property (home, land)
- Bank and investment accounts
- Retirement accounts (401k, IRA)
- Life insurance policies
- Personal property (vehicles, jewelry, collectibles)
- Digital assets (crypto, online accounts, intellectual property)
- Business interests
Learn more about What Estate Planning is in New Jersey.
Why Everyone Needs Some Form of Estate Plan
- Your estate plan ensures that your assets go to your chosen beneficiaries and are not distributed per state law.
- If you have minor children, you should name guardians for them to ensure their continuing care in the event of your untimely death.
- A good estate plan can help avoid the probate process.
- You can anticipate and plan for not only your demise but your possible incapacity.
- You can protect your spouse or domestic partner.
- It gives you a reliable mechanism to provide for dependents with special needs.
Read more about What Age You Should Start Creating an Estate Plan.
Key Documents Everyone Should Have (Regardless of Wealth)
- Last Will & Testament — directs asset distribution
- Revocable Living Trust — avoids probate, manages assets during incapacity
- Durable Power of Attorney — designates someone to handle finances if incapacitated
- Healthcare Directive / Living Will — outlines medical wishes
- HIPAA Authorization — allows loved ones to access medical information
Learn more about the Most Essential Estate Planning Documents.
Life Events That Signal It’s Time to Plan
If you meet any one of these milestones and don’t have an estate plan, it’s time to meet with your estates and trusts attorney:
- You’re getting married or divorced.
- You’re expecting children through birth or adoption.
- You’re buying a home or other significant property.
- You’re receiving an inheritance.
- You’re starting a business.
- You’ve reached or are approaching retirement age.
- Your spouse or close family member has died.
Do you have a pet and are wondering if you need a trust? Learn more about Pet Trusts and When You Need Them.
What Happens If You Don’t Have a Plan
Life is busy; you’re still young, and you haven’t made time to put your wishes in legally enforceable form. Understandable, but potentially tragic. Here’s what will follow if you die intestate (without a will):
- The state’s intestacy laws will decide who gets your assets.
- If you have minor children, the courts may appoint a guardian for your children, and it might not be the person you would have chosen.
- Going through probate court can cause delays and increase costs for your loved ones.
- Dying intestate can fuel family conflict and leave room for legal disputes.
- Without an estate plan, you will be unprotected should you become incapacitated.
Special Considerations for “Average” Americans
If you think you don’t need an estate plan because you’re too young or you don’t own a home, think again:
- Renters with minimal assets still need healthcare directives and a POA (Power of Attorney).
- Young adults (18+) need at minimum a POA and healthcare directive.
- Parents with young children should have a designated guardian for their children, regardless of their wealth.
- Blended families face unique distribution challenges.
- Retirement accounts and life insurance pass outside of a will, and your beneficiary designations matter.
Learn more about Planning for a Child with Disabilities as They Turn 18 in New Jersey.
How to Get Started
Here are a few steps to take right now:
- Take a simple asset inventory.
- Identify your key people (beneficiaries, executor, guardian, POA).
- Consult an estate planning attorney for personalized guidance.
- Consider online tools for simpler estates.
- Review and update your plan every 3–5 years or after major life events.
- Estate planning is an act of love and responsibility, not a measurement of your wealth.
- The cost of not planning is almost always greater than the cost of planning
- Start simple; a basic plan is far better than no plan at all
Need help with estate and trust planning? Contact an experienced attorney today at Sussan Greenwald & Wesler:
609-409-3500
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