ESTATE PLANNING

What Type of Estate Planning Do You Need?

Each individual has different estate planning requirements, as we all have our own goals when it comes to our estates. We might want to maximize the amount of assets that we pass onto our heirs by minimizing taxes, transfer assets to qualify for Medicaid assistance, or make sure that our children are provided for after our death. Regardless of what your desires may be, a well-drafted estate plan can help you achieve them.

In New York, an estate plan may consist of a number of legal documents, including:

Last Will and Testament

A will is a legal document, generally drafted by an attorney, which goes into effect after you die. A will names an executor to act as the personal representative of your estate; he or she will “probate” your will after you die through the New York Surrogate Court system. Through probate, the executor will ensure that your financial matters are settled, and that your property is disposed of in accordance with your wishes.

If you pass away without a will, then you are said to die “intestate.” Your assets will be then distributed based on New York laws on intestate succession. With a will, you can make sure that your wishes are followed after death. A will can also be used to plan your estate in order to minimize taxes.

Guardianship

If you have minor children, planning for what will happen to them if you die or become incapacitated is critical. Appointing a guardian as part of your estate plan allows New York parents to ensure that their children will be cared for if they die or are incapacitated. This can often be done through a will, as estate attorneys on Long Island can explain.

Trust

A trust is a legal arrangement that allows a person (trustee) to hold property or assets on behalf of a beneficiary or beneficiaries. There are many types of trusts, each with different advantages that can help you achieve different goals such as maintaining privacy, qualifying for Medicaid assistance, reducing estate taxes, providing for loved ones with special needs, or avoiding probate.

Power of Attorney

A power of attorney designates a person (known as an agent) to handle financial or other affairs for an incapacitated person. A financial power of attorney can be particularly important as part of an estate plan, as it gives an agent the ability to access your bank accounts and pay bills, if you are unable to do so. For a power of attorney to be effective, it must be made before you become incapacitated due to illness or injury.

Health Care Proxy

A health care proxy appoints a person to make medical decisions on your behalf if you cannot due to illness or injury. In this document, you can also decide if want life-saving treatment such as resuscitation, intravenous fluids or nutrition, and life-support. Because you can become incapacitated unexpectedly, having a health care proxy can ensure that your wishes regarding medical treatment are followed.