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Family structures have progressed beyond the nuclear family unit over the past few decades. With increase in rates of divorce and re-marriage, more parents serve in the roles of step-parent and co-parent. For many re-wed individuals, estate planning decisions must take into account not only one’s biological children, but also step-children, future children, or a new spouse. In revising their estate plan to incorporate these considerations, parents might use planning methods which by mistake expose family and assets to risk:- Joint accounts - Elderly parents might name an adult child as a signatory on an account to help manage finances. Sometimes the account owner does not clearly mention the change to the account. Several complications can occur with a joint account owned by an adult child and elderly parent. If the child becomes the target of a lawsuit, the assets held in the account could become susceptible to a judgment. Also, adding a child to an account could cause family conflict if one sibling is chosen over the other. Beneficiary designations - Parents must consider several factors before designating a child as the beneficiary of a retirement account or other asset. Assets transferred to minor age children create complications. Also, require court appointment of a guardian. Other mistakes parents might make include failing to include children on beneficiary designation forms or neglecting to update forms. Lack of Estate Plan - Delaying creation of an estate plan or not updating a plan to address children’s inheritance is another major mistake. A comprehensive estate plan can support families to address important issues and minimize family conflicts. To have an Estate Plan prepared appropriately, you may get assistance from the best Real Estate Lawyer or Attorney in NJ.
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