It is never pleasant to think about the end of your own life, but the fact is that everyone faces this certainty eventually. Estate planning allows you to prepare for the inevitable by making decisions in advance, thus taking the responsibility and burden away from your loved ones and protecting their inheritance. If you are thinking about the future, it is important to be educated about New York estate planning laws as you begin the process.
What Is Estate Planning?
In short, estate planning is a legal process that helps you outline your wishes for certain end-of-life decisions and affairs. With an estate plan, you can decide what happens to your money and other assets at the end of your life. You can also outline your wishes for medical treatment should you become incapacitated and designate a person to make decisions for you. Estate planning puts these decisions in writing and makes them legally binding.
Elements of an Estate Plan in New York
An estate plan can include several elements that address different aspects of end-of-life planning. Each of these falls under the larger umbrella of estate planning, but they can all stand on their own, too.
Last Will and Testament
A last will and testament is a document that lists what you want to happen to your assets after your death. Your will can also give direction on the guardianship of any children or disabled dependents. A will is a legal document, and its legitimacy can be called into question if it is not properly executed. Execution of wills is governed by Section 3-2.1 of the New York Estates, Powers, and Trusts Code.
Despite the importance of having a will in place, the majority of Americans do not. Only about 38% report already having a will. This is a vital part of estate planning, and it can take a lot of guesswork and potential conflict out of the equation for your family at the end of your life.
Power of Attorney
A power of attorney, or POA, is a legal document that gives another person the responsibility and right to make decisions in your interest. There are financial POAs and medical POAs, and both can be relevant to estate planning. A POA can protect you and your family if you become incapacitated and lose the ability to make decisions for yourself.
Under New York Law, you can name any mentally competent adult to be your agent in your POA, and New York also allows more than one person to be named as the agent. POAs in New York fall under Section 5-1501 of the New York General Obligations statutes. This section of the code dictates who can be an agent of a POA, how authority is granted to the agent, and how the POA can be legitimized.
Living Will
A living will is a document that outlines your wishes for your healthcare. It can address issues such as life support, the level of intervention, and long-term care. A living will, in conjunction with a medical POA, can help you feel confident about medical decisions.
Trust
If you have significant assets to pass down to family members, you may benefit from establishing a trust. A trust is a legal arrangement that gives control of your assets to a third party in order to pass them from one person to another. You would be the grantor of your trust. Anyone you want to inherit your assets would be a beneficiary, and the person in charge of taking care of the distribution is the executor.
Trusts are an attractive option in estate planning because they can help assets pass from one person to another more quickly and be subject to fewer taxes. Article 7 in Chapter 17-B of New York’s Estates, Powers, and Trusts Code lays out rules for trusts in the state. Your New York estate planning attorney should be very familiar with these laws and any nuances that apply to your situation.
Why Should You Hire an Estate Planning Lawyer?
If you are thinking about end-of-life decisions in New York, you should absolutely hire an estate planning lawyer to help you make sure your plans are legally sound and can hold up under scrutiny. One of the major goals of estate planning, aside from preserving your legacy and protecting what you have built over the course of your life, is providing security and peace of mind for your loved ones.
To accomplish that goal, all your documents must be accurate and properly executed. An experienced estate planning attorney can give you clarity and peace of mind as you make these decisions.
FAQs
What Is Probate?
Probate is the process of distributing assets after a person’s death. In New York State, probate matters, including validating wills, administering estates, and handling related issues for deceased persons, are handled by the Surrogate’s Court. Probate can be time-consuming and costly, but estate-planning attorneys can offer strategies that may help you avoid it.
What if Someone Dies Without a Will?
If a person dies with no will in New York, their assets are distributed according to state law. Chapter 17-B, Section 4-1.1 of the New York Estates, Powers, and Trusts Code dictates how assets are distributed to surviving family members. Spouses are the first to inherit assets, followed by children, and then parents and grandparents, and so on.
Can a Minor Inherit Property in New York?
Yes, but a minor may not be able to take ownership of property or money they inherit until they reach the age of 18. While a child is still a minor, the inheritance can be managed by a guardian, who can be court-appointed or designated in the will. That person is responsible for managing the assets in the interest of the child until the child is of legal age, at which point ownership of the property passes to them.
What Are the Disadvantages of Estate Planning?
Practically speaking, there are no disadvantages to estate planning. It can be a time-consuming process, and it is difficult to think about some of the decisions you need to make, but estate planning protects you and your loved ones by ensuring that there is a blueprint for how to handle your estate at the end of your life. It removes much of the uncertainty and replaces it with peace.
Choose Pezzello Law
Estate planning can bring a lot of comfort, peace, and relief during some of life’s toughest moments. If you are considering estate planning, contact Pezzello Law today to find out how we can help you protect what matters most.
