Basic Estate Planning
No two estate plans are the same. As qualified estate planning attorneys, we interpret the maze of laws bearing on property rights, taxes, wills, trusts, healthcare, and probate, in order to create a plan that meets your personal objectives.
Proper estate planning enables you to:
- Manage and preserve your assets while you're alive
- Efficiently transfer assets to your intended beneficiaries at death (or before)
- Protect your loved ones and their inheritances well after you pass away
The elements of an estate plan are as varied as the individuals who create them. Usually, proper estate planning combines a number of the following:
Last Will & Testament
A Will is a legal document that becomes effective at your death. It allows the probate court (called the Surrogate's Court in New York) to:
- Distribute your property according to your wishes
- Appoint the executor you name in the Will – the person entrusted to carry out your wishes
- Designate a guardian for minor children
Upon your death, your Will must go through Probate, which is the court process that proves the Will is valid and carries out the instructions it contains. Through this process, title is transferred from the name of the person who died to the beneficiaries named in the Will. In addition, your creditors are notified of your passing, and any debts you owe are paid from your estate.
Revocable Living Trust
Like a Will, a Revocable Living Trust allows you to determine the beneficiaries of your assets upon your death. A Revocable Living Trust can also be changed or revoked at any time if your needs or desires change. However, unlike a Will, a Revocable Living Trust takes effect during your lifetime, and thus helps you manage your assets before you die.
There are many good reasons to consider a Living Trust:
- A properly structured Revocable Living Trust avoids Probate and allows your estate to be administered by your family in private, without the involvement of the Surrogate's Court. This can save your family time and money.
- The Trust will take care of you and your assets should you become disabled and unable to make decisions regarding your finances
- A Revocable Living Trust can simplify the administration of your assets, especially out of state property, both during your life and after your death
- Like a Will, a Revocable Living Trust with proper tax saving provisions helps to reduce the financial burden of estate taxes
- While a Will can be easily contested by a disgruntled family member, a Revocable Living Trust is much less likely to be successfully challenged
A Revocable Living Trust can be a great tool, but they are not right for everyone. We can help you determine if a trust would be a good fit for you. Please contact us now to schedule a free consultation to discuss your needs and wishes.
Durable Power of Attorney
A Durable Power of Attorney designates those individuals (often your spouse or an adult child) who will be empowered with the authority to make financial decisions on your behalf if you are unable to do so due to illness or incapacity. They can also be used to make your life easier even when you are in good health by allowing your designee to transact business on your behalf if you do not have the time, energy, or capability to do so in person. For example, you could empower your spouse or adult child to the deal directly with the local Social Security office for you or go to the bank or DMV to file forms on your behalf.
Common Estate Planning Mistakes
- Lack of a game plan
- Improper use of jointly-held property
- Improper arrangement of life insurance
- Lack of liquidity to pay for estate costs
- Simple Wills prepared from a form packet or book
- Disposition of assets at the wrong time or in the wrong manner
- Failure to stabilize and maximize the value of a family business
- Lack of adequate record keeping
- Improper beneficiary designations
- Procrastination in planning
Important Information
New York State has recently implemented comprehensive new laws covering Powers of Attorney. Old Powers will remain effective,
but all clients are advised to speak with a qualified estate planning attorney to discuss how these new provisions will affect their current and future plans.
Current and prospective clients should contact us immediately for a free consultation regarding this change in the law.
Health Care Proxy / Living Will
Many folks can remember the ugly court battles and heart wrenching family disputes played out in the national press in the cases of Terri Schiavo and Nancy Cruzan. Comprehensive, up to date health care directives that include both a Health Care Proxy and Living Will are the key to protecting yourself and your family from this type of tragedy.
A Health Care Proxy empowers another person to make important medical decisions on your behalf if you cannot communicate with your doctors due to incapacity. A Living Will sets forth your preferences about life support, artificial nutrition and hydration, and other medical instructions. Often a HIPAA form (Health Insurance Portability Authorization Act) will accompany these documents in order to facilitate the convenient communication between physician and family in times of crisis.
Insurance Review
We will review your life, disability, and long term care insurance coverage to ensure they are up to date and complete. We do not sell such products, so you can be sure that our advice is accurate and objective. We will make recommendations regarding what features you should look for in each type of policy, and give you peace of mind that the policies you have (or are considering) are high quality, appropriate for your situation, and not overpriced. In addition, if you do not have a trusted insurance agent to assist you with your old policies or to help you obtain new ones, we'll be glad to refer you to professionals we trust.
Beneficiary Designation Review
Another vital component of our comprehensive estate planning services is a thorough review of the beneficiary designations on your retirement assets, investment accounts, and insurance policies. Many clients don't realize how important these designations are or that improper designations can cause significant tax issues or wreck an otherwise solid financial or estate plan. It is important to note that the common designation choices (e.g. spouse then children) may not be optimal. We will make sure all of your designations properly reflect your wishes and are fully coordinated with the rest of your planning.
Estate planning is a complex field, and you should strongly consider working only with a qualified attorney whose practice is dedicated to this area. We are proud to say that is precisely who you will find at Donlon & Associates PC. Contact us now to set up a free consultation to discuss your personal situation.