Considering how our estates should be managed and distributed after our death is an important decision we must make throughout our lives. This involves deciding on the distribution of assets, selecting beneficiaries, and determining if and how you wish to leave a legacy. An estate plan is a tool that consolidates these decisions, incorporating elements such as a will, trusts, living wills, healthcare proxies, powers of attorney, and specific guidelines for managing your affairs after you pass away and, in some cases, during your lifetime. Without such a plan, the distribution of a loved one’s assets after death can sometimes get very challenging.
At New York Legacy Lawyers, our skilled New York estate planning lawyers can help you overcome these challenges by laying out the best possible plan for managing your assets during your lifetime and transferring them in the event of death or incapacitation. Call us today at (718) 713-8080 to schedule a consultation.
How Estate Planning Works in NYC
Estate planning in New York City involves organizing your assets and determining their distribution upon your death. This process includes creating legal documents to ensure your wishes are honored and to facilitate a smooth transition of your estate to your beneficiaries.
Estate planning extends beyond merely drafting a will. It involves strategizing to prevent family disputes, optimizing access to government benefits, minimizing tax liabilities, and ensuring your long-term care desires are clearly expressed.
Why is Estate Planning Important?
Estate planning is crucial for ensuring your wishes are respected after your passing. Without an estate plan, your estate may end up being distributed according to state laws, as interpreted by a judge, rather than your personal preferences. This process can lead to unintended consequences regarding who inherits your assets or who takes responsibility for your minor children.
Creating an estate plan allows you to meticulously outline how you want your assets to be distributed. This proactive step not only clarifies your intentions but also helps to minimize potential disputes among those you leave behind. By providing clear instructions, you can prevent familial conflicts and ensure that your assets are handled in the manner you prefer.
Moreover, estate planning can offer financial benefits. It often leads to reduced taxes on the inheritance and can expedite the settling of your estate, making the process smoother and quicker for your beneficiaries. This is particularly important in helping your family avoid a lengthy and stressful probate process.
Essentially, estate planning is not just about distributing assets but about providing peace of mind and protection for both you and your loved ones.
Careful consideration of estate planning is important in securing your legacy for your loved ones. Here, we explain the fundamental parts of an estate plan and what is involved in each step, allowing you to get a clearer picture of what estate planning entails in New York.
Estate Plan Fundamental #1: Drafting a Last Will and Testament
A Will is a legal document used to outline your preferences regarding how your estate should be handled after your death. A will is a crucial part of an estate plan as it eases the transfer of property and helps beneficiaries avoid unfair tax burdens. It is also a way of expressing your deepest sentiments to your loved ones.
In New York, if you die without a will (intestate), your assets are distributed according to the state’s intestacy laws, as outlined in the Estates, Powers and Trusts Law (EPTL) § 4-1.1. Relying on intestacy laws can lead to outcomes that differ from your intentions. For example, unmarried partners, friends, or charities would not receive any portion of your estate under these laws. Additionally, the state’s predetermined distribution may not reflect the specific needs or relationships within your family, potentially causing disputes or financial hardship for your loved ones.
Depending on the estate size and preferences, a will can be a simple single-page document or a large detailed volume. A will should describe your estate, the people who will receive specific properties, instructions about the care of minors or other dependents, or disinherit people expected to get the property.
Wills requirements in Brooklyn, New York, state that a testator (the person making the will) should be an adult of sound mind. The will should be written and signed by the testator, unless they are unable to do so in which case, the testator must appoint another person to sign it before a witness, and the signature witnessed.
A will may have legal limitations which may restrict the testator from giving the full effect of their wishes. It’s best to discuss these points with an estate planning attorney directly.
Estate Plan Fundamental #2: Planning for Guardianship
Your estate plan must address the issue of caring for your children in the future in case both parents are deceased (or unfit). Though no one wishes to die and leave their young dependent children, it can happen, and you need to be prepared for this.
Your estate plan should include Guardianship provision, which is a legal relationship established by a court of law to give the responsibility of care and protection of minors to someone other than the parents. The court gives legal authority to the appointed guardian to make decisions concerning the child.
In Brooklyn, New York, the guardian must be 18 years and above, and a citizen or legal resident of the United States. Guardianship provisions should be included in your will alongside your other instructions upon death. You can also appoint a guardian for your minors in your will. When you include guardianship provision in your will, you will be at peace knowing that your children will be well taken care of in case of your death.
If you leave out a guardianship provision from your will, or did not establish guardianship provisions, a judge will appoint a guardian for your children (without your input). You might imagine, this could end up very messy!
Estate Plan Fundamental #3: Establishing a Trust
In estate planning, there are several different types of trusts, but at their root, they all function in similar ways. When you establish a trust, you are creating a separate legal entity that you will then transfer some, or all, of your assets to. When creating the trust, you will decide on a means for distributing the assets and you will designate a beneficiary of that trust.
Sometimes it’s easier to describe something like a trust by giving an example.
John and Kate set up a trust naming themselves as trustees. They transfer their assets into the trust and still retain access to all the assets they owned before the trust was established). They designate that upon their passing, the successor trustee will be their daughter Lisa and the assets in the trust shall be disbursed according to their wishes.
If you need other examples, please connect with us and we will walk you through all sorts of different trust types and which one best applies to your situation.
Estate Plan Fundamental #4: Working with a Skilled Estate Planning Attorney
While estate planning is critical, it can involve numerous legal proceedings and the collection of multiple documents. When creating an estate plan, strict compliance with state and local regulations is necessary to avoid any potential complications. Working with an experienced estate planning attorney can help mitigate any issues and and provide you with advice specific to your situation.
We help people just like you create all these documents and more with our support. Contact us today for assistance. Seek legal guidance from our skilled Brooklyn estate planning attorneys at New York Legacy Lawyers.
| Estate Plan Fundamental | Description |
|---|---|
| Draft a Last Will and Testament | A legal document outlining how your estate should be handled after your death. It simplifies property transfer, helps survivors avoid unfair taxes, and allows you to express your sentiments. Requirements in Brooklyn, New York, include being an adult of sound mind and proper signing and witnessing. |
| Plan for Guardianship | Address the care of your children in case both parents are deceased or unfit. Include Guardianship provisions in your estate plan, specifying who will care for your minors. In Brooklyn, guardians must be 18 or older, U.S. citizens or legal residents. |
| Establish a Trust | Create a separate legal entity to transfer some or all of your assets. Decide on asset distribution and designate a beneficiary. Trusts ensure assets are distributed according to your wishes. Example: John and Kate set up a trust, designating themselves as trustees, and their daughter Lisa as the successor trustee. |
| Get an Estate Planning Attorney | While estate planning is critical, it is quite complex, and you will likely need an estate planning attorney to help navigate the details and provide you with advice specific to your situation. We help people just like you create all these documents and more with our support. Contact us today for assistance. Seek legal guidance from our New York legacy lawyers. |
What is the Goal of Estate Planning?
Estate planning is a crucial part of managing assets, focusing on the effective distribution and management of your assets according to your wishes upon your passing. It is more than just the distribution of property; it involves making choices that reflect your personal values and objectives. The common goals of estate planning include:
- Providing for Loved Ones: This goal is central to most estate plans as it involves decisions regarding asset inheritance and specific distributions. Without a plan, state laws may dictate these matters, possibly in ways that do not align with your personal wishes.
- Mitigating or Avoiding Probate: Probate can be a costly and lengthy process. Effective estate planning can simplify or bypass this procedure, sparing your heirs the expense and stress of a prolonged legal process. Techniques such as setting up trusts or designating beneficiaries can help to achieve this goal.
- Minimizing Taxes: Estate taxes can considerably reduce the worth they are passed on to your beneficiaries. Strategic estate planning can help reduce or eliminate these taxes, ensuring beneficiaries or chosen charities receive the maximum benefit from your estate.
- Ensuring Orderly Asset Management: Estate planning can prevent asset mismanagement or loss during the transition period after your death. This includes appointing reliable executors or trustees and giving them clear instructions on how to manage and distribute your assets.
- Asset Protection: Your estate plan can also include measures to protect your assets from lawsuits, creditors, and other threats. This might involve setting up certain types of trusts or business structures to protect your assets from potential liabilities.
- Planning for Incapacity: Preparing for the possibility of mental or physical incapacity is an often overlooked but vital part of estate planning. Setting up powers of attorney or advance health care directives ensures that your affairs are handled in accordance with your wishes if you become incapable of managing them yourself.
- Appointing Guardians for Minor Children: If you have young children, it’s essential for your estate plan to include arrangements for their guardianship in the event that you and your spouse pass away unexpectedly.
A Brooklyn estate planning attorney understands the intricacies of achieving your unique estate planning goals. Whether you aim to protect your assets, minimize tax liabilities, or ensure a seamless transfer of wealth to your heirs, New York Legacy Lawyers can guide you through the entire process. Contact us to initiate your personalized estate planning journey today.
Living Will vs. Last Will and Testament
A living will and a last will and testament are two essential legal documents of an individual’s estate plan. Although these documents share similarities in that they provide instructions for the management of a person’s affairs, they have distinct differences in focus, duration, and revocability.
An advance directive, commonly referred to as a living will, is a legally binding document that allows people to express their medical treatment and decision-making preferences in case they become incapable. The document typically encompasses directions for life-sustaining measures, organ donation, and other medical interventions. It is a critical tool for ensuring that an individual’s wishes regarding their medical care are respected and followed, even if they are unable to communicate them at the time. A living will only goes into effect if the individual becomes incapacitated and can be revoked or revised at any time while they are still alive.
Alternatively, a last will and testament is a legal instrument that specifies an individual’s desires for the allocation of their assets following their death. It includes the designation of an executor to manage the distribution of assets and the naming of beneficiaries. A last will and testament only goes into effect after the individual’s passing and can only be changed by creating a new will or adding a codicil, which is an amendment to the existing will.
Despite these differences, a living will and a last will and testament are crucial components of an individual’s estate plan. They ensure that a person’s medical and financial wishes are followed and can provide peace of mind for themselves and their loved ones. At New York Legacy Lawyers, our team of New York estate planning lawyers may be able to guide you in creating a comprehensive estate plan that includes both a living will and a last will and testament. Contact us today at (718) 713-8080 to schedule a consultation.
Transferring Property to a Trust in New York
In New York, transferring property into a trust is a strategic step in safeguarding your estate’s future. Establishing a trust can streamline the inheritance process, protect your privacy, and possibly avoid the prolonged proceedings of probate. To initiate the transfer of real estate property into a trust, it is crucial to understand the necessary legal steps and documentation.
The process begins with drafting a new deed, where the trust is named as the owner of the property. This involves choosing between two deed types: quitclaim and warranty. A quitclaim deed simply transfers your property interest to the trust without assuring clear title, making it more straightforward. On the other hand, a warranty deed assures the property is free from liens or claims, offering a guarantee of title clearance. Due to this assurance, warranty deeds generally involve higher expenses, as they necessitate an extensive title search.
After selecting the appropriate deed, it must be duly signed in the presence of a notary. After notarization, the deed has to be filed with the county clerk’s office where the property is located. This step officially transfers ownership of the property to the trust. New York property owners must also be mindful of mortgages with due-on-sale clauses which could complicate the transfer, thus consulting with the lender prior to transfer is advisable to ensure compliance and avoid complications.
While the process of transferring property to a trust in New York can be handled independently, seeking professional legal advice from a New York estate planning lawyer is beneficial, especially for more bigger estates or unique property situations in New York. At New York Legacy Lawyers, our experienced attorneys understand the intricacies of property transfers to trusts. With our guidance, we can assist you in protecting your legacy and securing your family’s future. Contact us at (718) 713-8080 to schedule a consultation and take the first step towards peace of mind.
Estate Plans for the Living
There are situations we’ve all experienced or watched friends go through, when a person becomes physically or mentally unable to care for themselves or even make good choices for themselves. An estate plan becomes the means for someone in that state to still have some control, albeit from decisions they’ve prepared ahead of time.
While you have the capacity to make plans today, you can assign power of attorney to a specific person you trust and even include medical care instructions when or if the need arises. Should you become incapable or incapacitated, but still alive, everything you have is then protected from your actions, or from predatory strangers taking advantage of you while you are unable to understand or say, “No!”
Your Estate Plan Is Dynamic
Some choose not to develop an estate plan until they are older; this may be because they mistakenly believe that an estate plan cannot be modified once it is completed. The truth is that for an estate plan to work for you, it must be dynamic. Your estate plan should grow with you and change as the circumstances in your life change and evolve. For this reason, it’s essential that as you seek to establish your estate plan, you look for an estate planning attorney you can trust.
Estate Planning You Can Trust
Estate planning is an essential aspect of managing your future and ensuring your loved ones are cared for after you’re gone. By prioritizing estate planning, you can avoid potential legal complications, reduce the stress on your family, and safeguard your assets. Whether it’s drafting a will, setting up a trust, or designating power of attorney, taking these steps now provides peace of mind and clarity for everyone involved.
If you’re in Brooklyn and need skilled legal guidance on estate planning, New York Legacy Lawyers are here to help. Our experienced Brooklyn estate planning attorneys understand the intricacies of New York estate law and can tailor a comprehensive plan that suits your unique needs and goals. Don’t leave your family’s future to chance—contact us today at (718) 713-8080 to schedule a consultation and take the first step towards securing your legacy.
