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People often put off estate planning because it can bring up uncomfortable conversations about planning their affairs when they are no longer around. Some other people might believe they do not have enough property to make estate planning worthwhile. As an experienced estate planning attorney could attest, the truth is that every adult should have an estate plan.
Regardless of your circumstances, an estate plan ensures that property goes to the people you want to have it as quickly, efficiently, and inexpensively as possible upon death. The same basic tasks comprise the estate planning process in Melville, whether you have substantial assets or not. Understanding the steps and why they are important can help you get started.
Your personal circumstances dictate the estate plan. You must consider your priorities and share them with your attorney so they can develop a plan that will work best for you.
Arranging guardianship for minor children is a critical part of an estate plan. People who are childless or whose children are grown may want to focus on minimizing taxes, protecting assets from creditors, or keeping specific property in the family. Everyone should think about whom they trust to make decisions for them if they become incapacitated.
A Melville attorney will spend time getting to know you, understanding your current financial position, and learning about your personal and financial goals over the short and long term to create an estate plan. Armed with this information, they can create a plan that will meet your needs now and adapt to circumstances as they change.
An estate plan is a collection of documents. A Melville attorney understands the current law, is aware of proposed changes that could impact your estate plan, and is familiar with local courts’ interpretation of specific language.
Using a professional to draft your estate planning documents ensures your plan is as tax-efficient as possible and avoids unintended consequences. In addition, your attorney will keep copies of all the documents that comprise your estate plan, providing a safeguard in case your originals are lost, damaged, or unintentionally destroyed.
Every estate plan needs a will. A will ensures that your property goes to the people or organizations that you choose. Without a will, New York law requires that specific percentages of your property pass to specific family members. If you have minor children, the will is the document you use to designate a guardian for them. If your will does not name a guardian and your co-parent is not alive to care for your children, their care usually will revert to a close relative. In some cases, the children could wind up in foster care. Naming a guardian in your will ensures your children will be raised by people you trust to provide a nurturing and loving home.
Trusts are useful and versatile estate planning tools. Putting property in a trust removes its value from your estate, which can reduce the likelihood that your estate will have to pay estate taxes. Another significant advantage of a trust is that property in a trust passes to the beneficiaries without going through probate.
Many different types of trusts serve different purposes. For example, a special needs trust can provide funds to a disabled loved one without endangering their rights to public benefits, and a Medicaid trust can ensure you or your spouse will qualify for Medicaid if long-term care becomes necessary. Other forms of trust can protect assets from creditors or fund charitable activities.
New York General Obligations Law § 5-1513 allows you to designate someone to make financial decisions. A current power of attorney is an essential document that protects you and your family if you are unable to manage your affairs for any reason.
Accidents and serious illnesses can happen at any time. When they leave you unable to communicate your wishes, it is crucial that someone you trust has the authority to make them for you. Completing a healthcare proxy form allows you to designate someone to make your healthcare decisions and allows you to provide as much or as little information about your wishes as you choose.
An estate plan is dynamic and should change as your circumstances change. A young parent’s estate plan will likely look much different than an older person whose children are adults.
Choose an estate planning professional who is invested in the relationship with you and your family. Reach out today to start the estate planning process in Melville and to schedule a free consultation.
