A last will and testament lays out instructions for how to distribute one’s assets upon their death. This document is what most people think of when they are thinking of creating an estate plan, and it will in fact cover the estate planning needs of most people, at least when it comes to their assets.
Creating a last will and testament requires a person to gather all the information they have about their current assets and liabilities, and to decide how they would want those assets to be distributed if they were to pass away. This document also lays out who will be responsible for administering the estate, as well as any trusts that might need to be set up to manage the inheritance of a minor or other person requiring assistance in the event they are not able to manage their own finances.
Very importantly, a last will and testament is THE ONLY way parents in the State of New Jersey (and New York) can designate a guardian for their children should both of them pass away at the same time. If parents do not designate a guardian and something happens to them, the children’s guardian will be determined by the state through its court system. This can result in a messy affair and outcome that can–and should be–avoided.
The bottom line is that everyone over the age of 18 should have a last will and testament.