Caution!

 

 Your Beneficiary Designations on

Bank Accounts, Life Insurance
and Other Assets.......

 

...May Defeat the Goals of Your New Jersey

Trust and/or Last Will & Testament

 

Do you own assets held in joint accounts, or where you have a named beneficiary? These assets will not be distributed in accordance with your NJ living trust or Will. Instead, all joint assets will pass to the surviving joint owner, and all assets with a beneficiary designation will pass to that beneficiary.

 

Accordingly, if you have a convenience account with one of your children, the assets in that account will pass to that one child at your death, regardless of what your trust or Will might say. You should carefully review the ownership and beneficiary designation of all of your assets to be sure that the assets will be distributed to the right people at your death.

 

·         Are your residuary beneficiaries correct? Residuary beneficiaries are the people who receive the balance of your estate after (i) all the debts, expenses and taxes have been paid, (ii) any specific bequests have been made, and (iii) joint accounts or any assets with beneficiary designations have been distributed to the appropriate people. You should review this section of your estate planning documents carefully. If one of the beneficiaries were to predecease you, will that beneficiary's share pass to his or her children, your other children, or otherwise?

 

The use of a properly written New Jersey trust is a very good estate planning tool, but the beneficiary designations you name on your assets must be comparable with your trust objectives.

 

Not sure if your will, trust or beneficiary designations are correct?  If you have any questions concerning this subject, contact Fredrick P. Niemann, Esq. at 888-800-7442, or fniemann@hnlawfirm.com.  He is happy to answer your inquiries.