Updates to New Jersey Estate Planning since 2020
Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA)
With the proliferation of technology and the increasing presence of digital assets in our lives, the New Jersey legislature recognized the importance of addressing these assets in estate planning. In 2020, the state introduced laws consistent with the Uniform Law Commission’s recommendations that explicitly allow individuals to include digital assets in their estate plans.
Digital assets encompass a wide range of items, such as online financial accounts, social media profiles, digital photos and videos, emails, and other online accounts. Individuals now have the option to appoint a digital executor, responsible for managing and distributing digital assets according to the individual’s wishes. This update offers peace of mind to those who want their online presence managed appropriately after they pass away.
In 2021, New Jersey adopted the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA) which streamlines the process for fiduciaries to access and manage a decedent’s digital assets.
RUFADAA provides a clear framework for individuals to specify their preferences regarding the disclosure and management of their digital assets after their death or via power of attorney. It also addresses privacy concerns by requiring online service providers to comply with access requests while safeguarding sensitive information. This ensures that fiduciaries can carry out their duties efficiently, even in the digital realm.
Electronic Wills
Recognizing the growing demand for convenience and accessibility, New Jersey joined several other states in allowing electronic wills. Introduced in 2022, the Electronic Wills Act permits individuals to create, sign, and store their wills electronically.
Under this act, individuals must follow specific guidelines to ensure the validity of their electronic wills. For example, the testator must electronically sign the will in the presence of two witnesses, who must also electronically sign. This update caters to the needs of tech-savvy individuals and offers an alternative to traditional paper wills.
Clarifications to Intestate Succession
In 2020, New Jersey made clarifications to its intestate succession laws. These laws govern the distribution of a deceased person’s assets in the absence of a valid will. The update aimed to provide more clarity regarding which relatives are entitled to receive a share of the estate and in what proportions.
The revision also acknowledged the evolving nature of modern families, including stepchildren and adopted children. It ensures that these individuals are treated fairly in intestate estates, as long as they meet the defined legal criteria.
Estate planning is constantly evolving. If you are a New Jersey resident, it is essential to review your estate plan regularly to ensure that it aligns with updates to the law and fulfills your current goals.
