Organization and periodic review are two topics that should always be associated with the creation and maintenance of a proper estate plan. Without these two practices, it is all too easy for the wishes of a New Jersey resident to fall by the wayside. Over the course of a lifetime, many individuals will obtain a wide variety of assets, including various insurance policies. Ensuring that the beneficiaries for those assets are up-to-date is an essential aspect of good estate planning. Absent such measures, the division of one's estate can be left in the hands of a probate court.
An example is found in the estate of a man who passed away in 2011. The man had purchased two life insurance policies in 1999 and named the same three beneficiaries for each policy. However, within the same policy, he made note of his plan to establish a trust that would then become the beneficiary of the policies, and that the same three people would then become the beneficiaries of that trust. Later that year, the man made the change and designated the trust as the beneficiary of both policies.