Rochester Estate Planning Law Blog

The main goal for many people when crafting an estate plan in New York is to cover all the bases and ensure the assets and properties go where the testator wants. This can mean many things and the strategies to achieve the desired ends are critical to the process. Understanding potential pitfalls is a sound way to avoid them. Paying attention to what industry experts see as risks is key. A recent survey says that there are three basic concerns with estate planning in 2019: family disputes, the fluctuating markets and changes to the tax code. For people preparing or updating their estate plan, these must be considered.

Although the estate plan is designed to avoid family disagreements, they still happen. Beneficiaries and who is designated as such will unavoidably leave some members of the family feeling left out or thinking they did not get what they are entitled to. A lack of communication regarding the estate plan is also a foundation for dispute. Blended families in which the testator might have remarried and had children with the new spouse can also be the catalyst for problems. Being transparent, having dialogue and keeping family members as up to date as possible are ways to avoid these disagreements.

For single residents of New York, drafting estate planning documents might not be high on their list of priorities. While they might feel justified in avoiding the subject of the inevitability of the end of life and what will happen to their possessions, it is still a mistake for a variety of reasons. Even single people who do not have dependents should think about an estate plan. There are certain key aspects to an estate plan that anyone - not just those who are married, have a family or have significant assets - should understand before taking that vital step of creating the document.

A health care proxy and a power of attorney might not seem important to a young, healthy person. However, these documents are integral for anyone regardless of their situation, as they allow preemptive decisions on medical care and finances if the person becomes incapacitated. It should be someone the individual trusts to have their best interests in mind. A will is an obvious need, but there are factors to think about even after the will is written. For example, naming an executor is a vital part of a will, as the executor will handle probate and pay outstanding debts.

There are several estate planning changes you should consider after divorce whether you are a parent or not. These considerations can include updating your health care proxy, financial power of attorney, will, trust and beneficiary designations. The people you select to inherit from your estate, to manage your affairs and to make decisions on your behalf should always be the people you trust most, which probably is not your former spouse. However, as a divorced parent, you may have some special estate planning considerations as well.

Appoint a guardian

When New Yorkers are thinking about setting up their estate plan, nearly everyone understands what a will is. Creating a will is relatively easy, regardless of the person's financial and personal situation. However, not all situations are simple and more complex situations will need more thought into the kind of estate plan that is needed. This is where a trust can be useful. Understanding when and why a trust is beneficial can help the decision-making process immensely.

A revocable trust can address common worries that people might face. When the grantor of the trust dies, the trust will still be in effect to govern the wishes of the grantor. In some instances, the grantor is also the trustee. If this is the case, the trust should have successor trustees named. If a revocable trust is used, probate can be avoided, which can save time and money. Since a trust does not go through probate, the process will be completely private, and the contents of the trust will not be made public.