Most people do not realize that they already have an estate plan. New York State creates an estate plan for all its residents. The plan provides for its residents during their lifetime as well as at their demise. If you are 18 years or older and lack mental competency to make financial, legal and health care decisions, then New York State, through its mental hygiene laws, will choose who will make those decisions for you and will determine the types of decisions that are made. At your demise, New York State through its intestacy laws will determine who will inherit from you.
At Barrow Law Group, our experienced team design plans to ensure that your estate is distributed according to your wishes, and not New York State’s mental hygiene and intestacy laws. We craft comprehensive plans that are tailored to meet your estate planning visions. The tools we use to create your plans are based on your goals.
Estate Planning Tools
Last Will and Testament:
A Last Will and Testament, commonly referred to as a Will, is the legal document that is used to state who you want to receive your assets and who you want to act as executor, the person who marshals and distributes your assets. It is also used to choose who will be the guardian of your minor (under 18) children. Most people do not realize that a Will is not effective until it is probated in court after death. The probate court proceeding is time consuming and costly.
In New York State it is advisable to use an attorney to create and oversee the execution of your Will. An attorney will ensure that all of New York States requirements are met and that your goals are satisfied.
Living Trust:
One of the many benefits of a living trust is that your assets are distributed without the probate court proceeding that is required with a Last Will and Testament. If one of your estate planning goals is to avoid probate, then a living trust should be included in your estate plan. Other benefits of living trusts:
- provide a mechanism to manage assets if you become disabled
- ensure that what your wishes are carried out in the manner you want
- provide for a minor (under 18) child
- provide for a person with special needs
- provide for members of a blended family
- protect your assets from the cost of long term care, creditors, and threats
- reduce estate taxes
- keep assets in your bloodline
- provide a legacy
Power of Attorney:
This is the legal document that gives authority to a person of your choosing to make financial and legal decisions for you. Often, the importance of a well drafted Power of Attorney as an essential estate planning tool is underestimated. As a result, many people do not have a Power of Attorney or have one that is insufficient. A robust Power of Attorney may avoid the need for a court to appoint a guardian to manage your assets, make legal decisions for you and have a stranger compensated from your assets.
Advanced Care Directives:
An advanced care directive may state your wishes for the type of care that you want to receive if you lack the ability to make your wishes known. These tools give direction to your Health Care Proxy and may be used to limit the type of care that you want to receive in an end of life situation.