The average New Yorker has resistance towards Estate Planning. Many think that their modest estate is not worth the planning and some are not comfortable planning for mortality. To put it honestly, everyone needs to plan their estate. The middle class needs the services of an Estate Planning Attorney in New York much more than the more affluent class. This is simply because they have a limited resource that they need to safeguard from the taxman and minimize the legal costs of leaving behind their assets for their children.
Asset allocation on a Will is not the only task that you need to do when you are embarking on Estate planning. You need to understand the financial implications that taxation and probate costs will have. If you die before you have managed to plan how to manage your estate, your family may face many issues. The state laws for probate come into play by default, and your assets may end up in the hands of the court. For all practical purposes your spouse and minor children, if any may not get the lifestyle they are fond of.
Estate Planning Attorney: What Are The Documents That Needed To Plan Your Estate?
The jargon of legalese is confusing and so are the taxation rules that are quite complex. The best way is to find a smart estate planning attorney who will help you navigate these murky waters. There are multiple documents that you will need to prepare to secure your assets.
Will
Your will is the first document that needs your attention. Your lawyer will help you draft it in a manner that will ensure tax efficiency when your legal heirs stand to inherit. The will is the instrument that allows you to bequeath your assets to your loved ones as you desire. It is the main component of every estate planning. Will needs to go through the probate process which can be tedious and complicated.
Trust
The trust should be set up in a manner that is consistent with the will that you have made. You should make sure that the assets you have already nominated to a beneficiary should not go to another person in the trust. For example, if your son is the nominee in a life insurance policy, you should not bequeath the proceeds to your daughter in the trust. It is important for the trust and will to be compatible. The trust will ensure that you save on taxes and legal costs that probate involves.
Power Of Attorney
A power of attorney is a powerful tool that estate planners use. It is a document that allows you to appoint a trustworthy person to abide by your wishes if you are mentally or physically incompetent to make decisions for yourself. Timely intervention by the power of attorney can help your legal heirs avoid any intervention by the court.
A healthcare power of attorney or an HCPA is a notarized legal document that entrusts a family member or a loved one to make important medical decisions if you are not in the state to do so. This can also be a living will, as you can leave instructions on important things like how to deal with ‘Do not resuscitate’ wishes and such in any eventuality.
Trust
The trust should be set up in a manner that is consistent with the will that you have made. You should make sure that the assets you have already nominated to a beneficiary should not go to another person in the trust. For example, if your son is the nominee in a life insurance policy, you should not bequeath the proceeds to your daughter in the trust. It is important for the trust and will to be compatible. The trust will ensure that you save on taxes and legal costs that probate involves.
Power Of Attorney
A power of attorney is a powerful tool that estate planners use. It is a document that allows you to appoint a trustworthy person to abide by your wishes if you are mentally or physically incompetent to make decisions for yourself. Timely intervention by the power of attorney can help your legal heirs avoid any intervention by the court.
A healthcare power of attorney or an HCPA is a notarized legal document that entrusts a family member or a loved one to make important medical decisions if you are not in the state to do so. This can also be a living will, as you can leave instructions on important things like how to deal with ‘Do not resuscitate’ wishes and such in any eventuality.
