Estate Planning Lawyer Elizabeth, NJ
Any New Jersey individual that has accrued income, property, and other assets during their lifetime and hopes to pass it down to their family or next of kin should speak to an estate planning lawyer Elizabeth, NJ knows and trusts. All these things are part of one’s estate, and it’s not just reserved for the highest earners of a population. Estate planning is invaluable to anyone with accumulated earnings and possessions, and can even help you prepare a plan for how you want your financial and medical decisions to be managed in later stages of your life. An experienced and qualified lawyer such as one from Wade Suthard, P.C. can determine your best course of action.
Estate Planning Lawyer in Elizabeth NJ
When most people think of estates, they think of sprawling mansions nestled in a large gated area, but estates don’t just apply to wealthy individuals. Anyone who owns money and assets such as property should consider estate planning, which refers to the strategy of securing your wealth in preparation for your family members or loved ones to take ownership of it. It’s a financial plan that contains legal documentation about how you want your money and other assets distributed and to whom.
Getting a head start on your financial strategy early in your life can save you the hassle of figuring out the legalities related to your estate. One scenario you want to avoid is having your relatives or loved ones arguing about who gets a portion of your share. Those are issues that can have a generational impact and can result in lingering rifts and questions among family members and those closest to you. An Elizabeth, NJ estate planning lawyer would advise that you discuss estate planning with your loved ones in its early stages and express your preferences regarding your specific financial decisions and future medical care.
Main Elements of Estate Planning
There are several ways to approach state planning. Some people choose a few documents while others opt for a larger set of documents to address certain topics. While every approach to estate planning is different, the following items are the primary components:
- Will. This document provides instructions regarding how your assets will be distributed to your loved ones.
- Living Will. This is a key document to have as it contains healthcare directives for the type of care and treatment you wish to receive, such as a do not resuscitate order (DNR).
- Powers of Attorney. You can appoint certain individuals you trust to make decisions pertaining to your finances and medical care in the event you become incapacitated and are unable to communicate. There are different types of powers of attorney, such as for financial and healthcare decisions.
- Revocable Living Trust. This is a document that describes how your assets will be divided after you die. However, you must set the assets aside (into a trust) before your death. You also may change or cancel any provisions at any time.
Call an Experienced Attorney for Legal Assistance
You might not know where to begin if you’re new to estate planning. Seeking guidance on your estate planning strategy is best done sooner than later. Schedule a risk-free consultation with a trusted estate planning lawyer in Elizabeth, NJ now.
Planning for Retirement
It seems that with each generation, the golden age of retirement increases. Decades ago, many people retired at 62. Then that number was pushed to 65, where it hovered for quite some time. However, over the past few years, many people are encouraged to keep working until they are at least 67 years old, or even older. But does working past 65 help or hurt your long-term retirement financial state?
There are benefits to continue to work past 65. You will be adding more funds to your retirement accounts and allowing the interest to accumulate. The longer you are earning income, the shorter the time will be that you will actually be relying on retirement funds to support you. If you do keep working, there are definitely issues you will have to address in order not to be penalized. An Elizabeth, NJ estate planning lawyer can go over these issues with you. In the meantime, the following is a brief overview.
The first issue is Medicare. It is important that you sign up for Medicare on time. A person is eligible to enroll during a seven-month window that begins three months before their 65th birthday. If you miss this window, then your premiums for Part B will be 10 percent more for every 12-month period that you delay your enrollment.
If during your enrollment period, you are covered by either your own group medical plan or your spouse’s group plan, you can avoid the late penalty by enrolling in Medicare while you are still covered by the group plan, or within eight months of leaving your job or losing group coverage.
If you do work past 65, you will be adding more funds to your Social Security retirement benefit. People who were born after 1959 are not eligible to receive their full benefit until age 66 and 10 months. At that age, they will receive 100 percent of their benefit. If they wait until they are 67 to retire, then they will receive 101.3 percent. If you wait until your 70th birthday to retire, you will receive 125.3 percent of your monthly benefit. An Elizabeth, NJ estate planning lawyer can help you determine when the best time to retire may be.
Retirement Account Withdrawals
Most retirement accounts require owners to withdraw funds and pay income tax on those funds after a person turns 70.5 years old. However, with many plans, that is not the case for those who are still working. If the person has retirement accounts with former employers, they will be required to begin making those withdrawals, or else face a 50 percent tax penalty for failing to withdraw the correct amount of funds.
Do You Need More Information?
For many, working past retirement age is not always an option, but a choice, in order to continue to make ends meet. That is why it is crucial to begin retirement and estate planning as soon as possible. The younger you are, the better. Contact an experienced estate planning lawyer in Elizabeth, NJ to discuss your family’s future needs. Call the Law Office of Wade Suthard, P.C. to schedule a free consultation.