Many people don't realize the need for financial planning as they get older. Believe it or not, those who are not actively involved in estate planning may be putting their family at risk. One of the problems that financial planners in New Jersey and elsewhere are finding is that only one spouse may be involved in the finances. When something happens to this person, it may be difficult for the other spouse to continue with the finances going forward.
A recent study found that about 19 percent of baby boomers feel that they owe their children an inheritance. Of individuals age 72 and older 14 percent feel they must leave an inheritance to their children. While it may be that baby boomers are more interested in imparting family legacy and values, the simple fact is that many still have substantial assets to distribute as well.
Heirs of those who died are often stuck with hefty estate taxes. Those in New Jersey and other states may benefit from considering how to use estate planning to better manage their retirement wealth. Properly envisioning an estate may ensure that heirs will pay little or no federal taxes on their inheritance. Whether it's a large estate or an average one, estate planning can go a long ways toward limiting unnecessary taxes and expenses.
Our nation is seeing one of its largest and most renowned age groups entering into senior citizen status -- the baby boomers. It is this groups' entry into their golden years that has driven many states to enact legislative changes to protect them and their estates from disagreements between children, grandchildren and/or other designated guardians. The new form of elder abuse, dubbed as "granny snatching" has been a problem throughout the country. Legislators in New Jersey are hoping to join the ranks of 30 other states to protect the best interests of their vulnerable adults.
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.
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.
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.
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.
People might think that only senior citizens are in need of estate planning to handle their assets upon their deaths. This is a common misconception for many Ocean City residents.
Many Camden County couples preparing their estate plans utilize the assistance of a financial advisor to prepare important documents. However, it is important for individuals and couples to not only provide accurate information to their financial planner, but to also carefully review the information on the documents.