What Are The Four Elements Of Estate Planning In New York?

Last updated on: May 10, 2021
estate planning elements

Many people aren’t comfortable with the idea of death or what comes after it for their families. You may think it’s a morbid topic, but estate planning is necessary. 

It is especially imperative to find an estate planning lawyer if you live in New York. Property prices here average out at around $657,637, and your New York estate planning lawyer can help you understand how to be prudent about your real estate, inheritance, belongings, the ins and outs of wills, trusts, and everything in between.

Here are the four essential elements of estate planning in New York you’ll need to take care of:

1. Last Will And Testament

The last will and testament is usually shortened to the term “will.” It highlights what you envision for your assets after you pass and names the individuals to whom you assign these assets.

If you don’t leave a will, your assets will be administrated or probated according to their worth. When an estate is worth over $30,000, it’s probated according to New York laws. When an estate is worth under $30,000, there’s a “small estate proceeding” that decides how your assets will be administered.

A will enables your loved ones to avoid a painful probate process and receive the assets as you want. 

It’s best to discuss your will with the trustworthy, close people in your life to avoid any potential problems after you pass. Estate planning experts believe that the optimum time for drawing up a will is during and after significant life milestones, such as getting married.

You must have a will when you have a child since it establishes the individuals who will take your child’s legal guardianship if both parents undergo an accident. 

Healthcare Power Of Attorney

Your healthcare power of attorney (HPOA) is a legally binding document. Its purpose is to officially name the person who will make your healthcare decisions for you if you can’t make them yourself. It’s best to get it drawn up along with your will through a New York estate planning lawyer.

An HPOA is also known as a living will or advanced medical directive. If you’re terminally ill or incapacitated, your decision-maker will inform your medical provider about decisions pertaining to life support or intervention.

Financial Power of Attorney

Your financial power of attorney is a legally binding document that names the person you want making your financial decisions for you if you can’t make them yourself. If you’re medically incapacitated, it enables a trusted person to handle investments and bills.

Establish a Trust

A trust indicates how you want your beneficiaries to use your assets after you pass. It’s a legal entity that highlights stipulations. You can use it when you’re alive or after you pass to protect your assets from being improperly used.

Trusts are usually set up to provide a steady income for heirs and give older people routine care. You can also set up trusts for specific circumstances or expenditures.

You don’t need to have a trust unless your estate or insurance policy is sizeable. In that case, discuss it with an estate attorney to set the correct parameters.

New York Estate Planning For Your Peace Of Mind

Estate planning enables you to ensure that your possessions go to the people you care for. It’s imperative that you create a legalized, official plan that follows your plan and vision for asset distribution.

If you need an attorney for your estate planning needs, contact us today. Our New York estate planning lawyers are ready to answer any questions you may have.

Kristine M. Carranceja-Gurski

Kristine M. Carranceja-Gurski

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