Estate Planning Frequently Asked Question
In New York , what is considered Estate Planning?
Estate planning is a process that involves many people including family members, friends, other individuals and sometimes designated charities. In planning an estate, the services of an estate planning attorney should be retained.
Most people assume that a will covers who will make decisions in the case a person is comatose or on life support, and to whom will one's property be granted in the event of death. How does estate planning in New York differ?
A will is only one part of a complete estate plan. Estate planning, under the guidance of an estate planning attorney, may involve legal, medical, financial, and tax as well as business planning. You certainly need a will, but you will also, at a minimum need a living will and power of attorney. An estate planning attorney will explain the estate planning process and help you meet your goals and objectives.
Because a person's personal and financial situations change, it may be necessary to change your estate plan periodically.
In estate planning, what is a Will, a Living Will, and Power of Attorney?
In New York estate planning, a will is a document in which you specify who will inherit your property upon your death. A properly drafted will ensures that your property will pass to the persons or organizations you want to receive it rather than those whom the Government believes should receive it. A well-written will by an estate planning attorney will drastically reduce probate costs and preserve your property for your family.
A living will is a document that takes effect after (1) you have been in a comatose state for seven days and (2) two doctors certify in writing that the condition is incurable and (3) artificial feeding is the only procedure being provided. It permits you to specify how long you wish to remain on artificial feeding. You can choose to have it discontinued immediately, continued for a specified number of days or continued indefinitely. Without a living will, a hospital may continue artificial feeding, at great cost to your estate until you die or your family may have the burden of deciding when it should be discontinued.
A power of attorney lets another person make day-to-day decisions for you and act on your behalf in the event that you are unable to. For instance, if you were hospitalized and unable to pay your monthly bills, it would permit another person to pay them for you. Alternatively, in the event that you cannot make medical decisions on your own behalf, it would permit another person to make them for you. An estate planning attorney can provide more details.
What steps does an estate planning attorney take when planning an estate?
In New York , many estate planning attorneys will ask the following questions during an initial meeting:
- What are the client's assets and what is their approximate value?
- Whom does the client want to receive those assets and when?
- Who should manage those assets if the client cannot, either during their lifetime or after death?
- Who should have the responsibility for the care of a client's minor children, if any, if he or she should become incapacitated or die?
- If the client cannot care for themselves, who should make decisions on their behalf concerning care and welfare?
During estate planning, how does an estate planning attorney determine the size of an estate?
An estate attorney considers an estate to consist of all property or interests in property owned by the client. Estate planning generally stipulates there are three types of property:
- Real Property is real estate such as houses, farm and ranch land, vacation homes and the like.
- Tangible Personal Property is any property other than Real Property (such as family heirlooms).
- Intangible Property includes things such as corporate stock, bank accounts, CD's and IRA's and insurance policies.
Your estate is valued at the time of your death as the fair market value of all of your property less any amounts owed. For instance, if your home is worth $250,000 with a $200,000 mortgage, then the net amount of its worth would be $50,000.
In New York estate planning, you can hold property many different forms other than your own name. Many people own property in joint tenancy with other persons. Property held in joint tenancy passes to the surviving person upon death and is not disposed of by your will. Insurance policies and pension plans allow you name a beneficiary. The person named as the beneficiary receives the property at your death regardless of what it says in your will. You and your estate planning attorney should consider the impact of joint tenancy and beneficiary designations when planning an estate. The value of an estate is also important in determining whether it will be subject to Estate Taxes.
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