Monday, December 26, 2016

Understanding the Will in NJ

Understanding the Will in NJ

It is very important to read and understand the will or trust so that you will know:

* who the beneficiaries are;
* what they are to receive and when
* how many years the trust will be ongoing; and
* who, if any, are your co-fiduciaries

Does the will give everything outright, or does it create new trusts that may continue for several years? Does a trust mandate certain distributions ("All income earned each year is to be paid to my wife, Nancy") or does it leave this to the trustees discretion ("My trustee shall distribute such income as she believes is necessary for the education and support of my son, Alan, until he reaches age 25")? The document often imparts important directions to the fiduciary, such as which assets should be used to pay taxes and expenses; and the document will usually list the fiduciary's powers in some detail.

Most fiduciaries retain an attorney who specializes in the area of trusts and estates to assist them in performing their duties properly. An attorneys advice is very helpful in ensuring that you understand what the will or trust and applicable state law provides.

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