The Complete Guide to Estate Planning in New York: Wills, Trusts, and More
Estate planning sounds like a big job, and the best estate plan is never finished. Despite this, your estate plan does not have to be complicated to do its job of saving your family from a stressful probate case after you die and from having to make heartbreaking and conflict-prone decisions during your final illness. Just as divorce is messier for wealthy people than it is for you, the same applies to estate planning and probate. You don’t have vast sums of money, to the point where it is worthwhile to hide them from the IRS and you have the resources to do so, but you do have family members you love, and you don’t want a messy probate case or disputes over your long-term care to cause a rift in your family. For help strategizing your estate plan and drafting estate planning documents, contact a Bronx estate planning lawyer.
Everyone Needs a Will, Even Young People Who Don’t Own Much Property
Your will is a list of instructions for the probate court about how to distribute your property. If you don’t write a will, the probate court will follow New York’s laws of intestate succession and transfer your property to your closest surviving relatives. Therefore, your will is your chance to disinherit family members or to include friends or charities as beneficiaries of your will. Your will is also the place to state your wishes about burial or cremation and, if applicable, to provide instructions about the care of your pets.
A Trust Can Save You and Your Heirs Time and Money
Any property that you place in a trust does not become part of your estate. An irrevocable trust becomes legally separate from you, the grantor, as soon as you establish it. Therefore, you do not pay taxes on it, although it may have its own tax obligations. A revocable trust legally remains your property while you are alive, so you still pay taxes on it, but you can change its provisions throughout your life. The beneficiaries do not have to wait for your estate to settle before they start receiving payments from the trust.
Estate Planning Is About More Than Just Wills and Trusts
Estate planning is not just about your heirs inheriting money from you. Your long-term care is also important. Therefore, you should draft a healthcare proxy, also known as an advance directive, stating the lifesaving treatments you do and don’t want in a medical emergency and designating the person you authorize to express these wishes. You should also buy long-term care insurance, so you don’t risk losing your savings and other assets if you require nursing home care for an extended period.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
An estate planning lawyer can help you draft a will, establish a trust, and file the other documents that make up your estate plan. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.
Source:
ag.ny.gov/sites/default/files/advancedirectives.pdf