Many people put off the task of planning their estate, believing it is something that should only be done by older or wealthy individuals. However, every adult needs a comprehensive estate plan to ensure that his or her wishes are respected and the family’s financial affairs are taken care of in the event of death or incapacitation. Creating an estate plan does not have to be expensive or complicated, and a New York estate lawyer can help to make the process as smooth as possible.
To that end, we have prepared this basic checklist to help guide you through the various tasks and documents that are involved in the estate planning process. A New York estate lawyer can review your situation, ask the right questions, and create a legally sound plan that is tailored to your unique circumstances.
Select a Health Care and Financial Agent
The first step in the estate planning process involves selecting someone to manage your affairs in the event of incapacity. This is accomplished by executing a Health Care Proxy and Durable Power of Attorney. A financial power of attorney is also a required element in all estate plans in New York. The law in this state requires that the document be designated as “durable,” which means it will remain effective even if you become incapacitated.
Determine Taxes to Pay
The next step in the estate planning process is determining the extent to which you need to plan for New York state and federal taxes. New York imposes its own estate tax in addition to the federal inheritance tax, and the top NY estate tax rate is 16%. Having a comprehensive estate plan can help to reduce the size of the estate that is subject to the tax, thereby increasing the amount of inheritance that your loved ones will receive.
Consider Using Trusts
There are many different types of trusts, which can serve a variety of purposes in an estate plan. A skilled estate planner, such as a New York estate lawyer, can help you to create a trust that is appropriate for your circumstances and that will minimize your estate tax liability.
Create a Last Will and Testament or Revocable Living Trust
A last will and testament is a legal document that states your final wishes with regard to the distribution of your assets. In addition to naming beneficiaries for your assets, you can also include provisions in the will that provide protection against creditors and other claims against your estate. Consulting with an estate lawyer in New York can ensure that your will is legally robust and covers all necessary aspects.
Prepare a Summary Plan
A summary plan is a simple document that outlines the major provisions of your estate plan. It can be very useful in preventing disputes between relatives over the division of your assets. It can also avoid the cost, time, and publicity associated with a full-blown estate dispute in probate court. Seeking advice from a New York estate lawyer during the creation of your summary plan can help ensure its effectiveness.
A New York estate lawyer assists clients with the administration of their property after their death and in some cases during life. They help people plan their estates, draft trusts, and other documents, and carry out those plans. They also help people minimize federal and state gift, estate, and generation-skipping transfer taxes. They often work with other advisers, such as accountants and financial planners. They may also help people resolve tax disputes that arise during the course of an estate or probate proceeding.
An estate lawyer who specializes in estate planning can create a plan that meets the client’s goals and objectives. They consider the client’s family relationships, financial situation, charitable inclinations, and other considerations. They will review the impact of federal and state gift and estate tax laws on the client’s plan and prepare any necessary documents to implement it. They may also assist in transferring assets between legal entities or in mergers and acquisitions.
In the event a person dies without a will, it is called dying "intestate." If the deceased individual owned any money or property, it must be passed to their beneficiaries through the court process known as probate. An attorney who specializes in estates can help heirs and executors navigate the probate process by filing a petition with the New York Surrogate’s Court. Once the petition is filed, the court will issue letters testamentary that give the executor legal authority to manage and distribute the property. The court will also appoint guardians for minor children and conservators for incapacitated adults.
The heirs to the estate will then receive their inheritance according to New York state law. In addition, the executor will be required to pay statutory fees to the estate’s creditors and tax authorities. Depending on the size of the estate, an estate can also be subject to New York state income tax. A New York estate lawyer can help their clients minimize the amount of tax they owe.
In addition to helping people protect their assets, a New York estate attorney can assist them in preserving public assistance eligibility. For example, they can set up a special trust to provide additional funds for a disabled loved one without jeopardizing their eligibility for government benefits.
If you’re interested in working with a New York estate lawyer, use our detailed law firm profiles to find a qualified professional. Each profile includes an overview of the attorney’s education, training, experience, and recommendations from other clients. You can also learn about the attorney’s past disciplinary record, if applicable. Once you’ve found a New York estate lawyer who is right for your case, contact them for a consultation. Our experienced team of attorneys will guide you through the process from start to finish and ensure that all deadlines are met. Our goal is to ease the burden on your family and provide you with peace of mind. Call today.
If you have a home, business, or other assets with significant value, the last thing you want is for those things to be lost in a lawsuit or other event. A New York estate lawyer specializing in asset protection can work with you to develop an effective estate planning strategy that will protect your investments and pass them on to your loved ones when you are gone.
While state laws vary, many of them provide some level of asset protection. For example, in New York, property that is recognized as homestead is exempt from a lien by creditors. The amount of real estate that may be declared as homestead varies by county, and spouses are entitled to double the exemption. Other assets such as vehicles, jewelry, and personal items can also be protected with a homestead declaration. An experienced estate lawyer can provide legal advice for you.
Similarly, if you transfer your assets to a trust while you are still living, those assets will not be considered part of your estate for Medicaid eligibility purposes. However, those assets will be subject to a tax when you die, so it is important to speak with an attorney specializing in estate and trust law prior to transferring your property.
Another area in which an experienced New York asset protection lawyer can help is with the division of assets between a divorcing couple. New York is a community property state, but there are numerous issues that can complicate the process of equitable distribution. In cases with a large amount of varied property, it can be difficult to determine which assets are marital and which are separate assets. An estate lawyer can review your assets and help you prepare an asset protection plan to ensure that your family’s wealth is kept within the family.
A well-known and respected estate planning attorney can assist you in ensuring that your assets are properly transferred when the time comes for you to pass on those funds and other assets to your family. If you are interested in preparing an estate plan or reexamining your existing one, please contact a New York estate lawyer today.
Our attorneys are proud to partner with clients and their other advisors to help them achieve their goals and aspirations. Call us or fill out our online form to request a consultation with an estate lawyer specializing in estate planning and asset protection today.
New York Legacy Lawyers by Yana Feldman & Associates PLLC
132 32nd St, Brooklyn, NY 11232, United States
(718) 713-8080