The Importance of Estate Planning

WHAT IS ESTATE PLANNING? An estate is all property and assets owned by an individual or group During your working years, your financial goal is to build your estate by acquiring and accumulating money for your current and future needs

A Will A legal document that tells how an estate is to be distributed when a person dies You name an executor to carry out your wishes Any person over 18 can make a valid will The person who makes the will is called the testator 3

Wills Why is a will important? If you die INTESTATE - which is the status of not having a valid will – the state of New Jersey will step in and control the distribution of your estate without regard for your wishes Make sure you have a written will Costs about $200 - $500

Beneficiary A person who is named to receive a portion of someone’s estate 5

SELECTING AN EXECUTOR This person follows your instructions Find out if the person is willing to accept this major responsibility and capable of the complicated tasks involved Person could be a family member, friend, attorney, accountant, or a bank representative If you don’t name one, the court will

Gather Necessary Legal Documents An estate plan involves various legal documents: You should collect and organize various important papers: 1.Birth and marriage certificates 2.Legal name changes 3.Social Security documents 4.Military documents 5.Insurance policies 6.Bank account records 7.Safe-deposit box records 8.Automobile registrations 9.Title to stock and bond certificates 19-7

Types of Wills You have several options in preparing a will Simple Will- a short document that lists the people whom you want to be your heirs and what you want each to receive. Holographic Will – is written in a person’s own handwriting and valid only in 10 states. A Living will is a legal document in which you state if you want to be kept alive by artificial means if you become terminally ill

Make an Inventory of Your Estate Bank accounts, CDs, money market funds Stocks, bonds and mutual funds Life insurance, employee benefits and annuities Your home, any other real estate Business interests, farm assets Money owed to you Interests and trusts Antiques, art, jewelry, collections, cars, and personal effects 19-9

Michael Jackson’s Will planning-center/last-will-and- testament/wills-of-the-rich-and- famous/last-will-and-testament-of- michael-jackson.htmlhttp://livingtrustnetwork.com/estate- planning-center/last-will-and- testament/wills-of-the-rich-and- famous/last-will-and-testament-of- michael-jackson.html 10

Make your own will! Complete the form on the shared drive Think of at least 5 things you want to give to underclassmen after you graduate HHS Fill out as much as you can - naming your executor and guardian of your future children List the one person who should get the remainder of your estate – things that you did not put on your list 11

Things to include in Article IV 1.Things you learned along the way 2.Regrets 3.Fondest memories 4.Words of wisdom/advice to leave your fellow underclassmen 12

Examples: 13