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An estate plan is a series of documents that allow you to dictate what happens to your assets after you pass away. These documents can also help plan for your care should you become incapacitated or are no longer able to manage your personal finances and personal decisions.
Most people have an estate plan in their minds as an abstract concept before they ever put the plan on paper. For example, you could have a joint checking account with your spouse with the general idea that should you pass away first, your spouse will have that money come to them.
In its most basic sense, this is an estate plan – but it may not have the legal function to accomplish what you plan for it to do.
An attorney simply helps you use documents as tools to make these plans a binding legal reality. Estate plans can also help your family minimize taxation and end-of-life costs, protect your loved ones, and protect your family’s legacy.
An asset is any piece of property, including a home, land, personal items, bank accounts, life insurance policies, and retirement accounts. Assets can also include digital assets such as email accounts, social media accounts, and cryptocurrency.
Anything of value, whether monetary value or emotional value, that can be passed on to another person can be classified as an asset and included in your estate plan.
A will is a document that states what you would like to have happen to your possessions when you pass away. It also states who you would like to carry out that plan or act as your will’s executor. It is necessary to have a will in New York; without one, the people or causes you would have wanted to benefit from or receive your assets may not be able to.
Without a will, the State of New York will distribute your assets according to set laws, which may not reflect your wishes or plans.
A trust is a document that, once signed by you, creates a legal entity that owns or benefits from assets. This legal entity then releases those assets according to terms established by the trust’s founder. Trusts also help keep these assets from going through probate once you pass away.
Revocable trusts can be changed, amended, or revoked during your lifetime. Irrevocable trusts, on the other hand, do not allow you to take the money protected by the trust back, are generally set up with specific goals in mind, and are often managed by trustees after you pass away. They may, however, allow you to make adjustments to terms, who will manage the trust, and who will benefit from it.
For example, you could create an irrevocable trust that keeps assets in place for a specific child and only releases those assets once your child has graduated college, turned 30, or reached another milestone of your choice. You could also tailor a trust to only finance certain things, such as a child’s education or a disabled family member’s long-term care.
A power of attorney is a document that appoints a person or set of people to act on your behalf should you be unable to care for yourself or manage your finances. This person or people would then owe you a legal duty to act in your best interests, and it’s important to select someone whom you trust to carry out your wishes faithfully.
While power of attorney usually applies due to incapacitation, it could also be used for the sake of convenience. For example, if you were unable to get to your bank, your power of attorney could handle the task for you.
It’s important to be sure that this person is capable, financially responsible, ethical, and willing and able to take on the responsibility. You can name more than one person at a time as your power of attorney, and name backup candidates as well, in case your first choice is unable to carry out the responsibility.
At Hyl Conte Law, PLLC, we’re here to break down complex legal jargon into simple, everyday language. We want to be sure that you fully understand the legal terms and estate planning tools available and that you grasp the real-life impacts of every document, decision, and signature in terms that make sense.
We won’t rush you, and we want to make sure that you’re fully informed, at ease, and satisfied with the details of your estate plans.
What’s more, when you have a relationship with our law firm, we’ll keep your original documents in a secure vault, allowing your family members to work with us if they have any questions or concerns at a later date. We want you to feel comfortable instead of afraid or hesitant. Estate law shouldn’t be intimidating, and our approach to law is open, forthcoming, and warm.
We’ll communicate, answer your questions, and are available to talk whenever you have a concern that arises along the way. Did you hear a neighbor talking about her trust at a cocktail party and have questions about how your plans differ? We’ll walk you through the differences and make sure you understand how your estate plan applies to you.
For more information on Estate Planning For Residents Of Suffolk County, NY, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (877) 200-6845 today.