Protecting What
Matters Most
Matters Most
New York Estate Planning Attorneys
Our New York estate planning attorneys believe estate planning is a crucial aspect of life planning that every adult should consider, regardless of age. And, it is the heart of our practice because we believe every adult should have one.
A comprehensive estate plan consists of several essential legal documents that help individuals and their families navigate difficult times. They are a will, financial power of attorney, advance healthcare directives, and depending on your circumstances, a trust. These documents ensure that someone can step in and manage finances and healthcare if needed, and that your wishes for the distribution of your assets are respected after you pass away.
It goes without saying that this is an important process, and you should know your options to make informed decisions in accord with how you want your legacy to pass on. This is where The Chamberlain Law Firm can step in. Our goal is to act as your trusted advisor to help you accomplish your goals. We do this by giving clear practical advice, that makes complicated topics easier to understand so that you make choices that are best for you.
Wills
A well drafted will that is clear, accomplishes your goals***, and provides back up protections for life’s unexpected events is not free. However, not having one can be very costly.
A will is a cornerstone of estate planning documents, indicating who will be in charge of your estate and inherit your assets. Without a will, your estate will be distributed according to New York State laws, which may not align with your wishes. This fact could certainly produce negative outcomes, making widowers, single people, those without children, and those in second marriages especially susceptible to potential problems.
For people who are in their only marriage with children of that marriage, at the least, a will is important to account for circumstances that you may not expect, but do happen. The will should have two backup executors if the primary one you choose cannot act. And, backup recipients for your assets if your primary beneficiaries predecease you.
Backups are important. Life changes. The unexpected happens. To account for this, your will should also have a “taker of last resort” for your assets. While it is unlikely that everyone you want to provide for is not around when you pass away, the proverbial ship has gone down in the past. When it does, the taker of last resort can fill the void.
A will should also dispense of a bond requirement for probate. Depending on how end of life events unfold, if there is no will, a bond may be required to ensure that the court appointed administrator of your estate does not abscond with your valuable assets. This is because the courts are not sure that the person they appoint will not run away with them. The bond acts like an insurance policy, which pays the beneficiaries of your estate if your appointed administrator disappears. The bond is based on the size of your estate, easily costing over $1,000.00 for a one year premium. This premium continues every year the estate remains open.
This flows into another important purpose for the will: naming agents to act on your behalf. One important agent is your executor. The executor collects your assets and distributes them pursuant to your wishes.
Another very important agent designation, and perhaps the most important one for anyone with a minor child, is a guardian for that child. This can be a hard decision to make but every parent should do it themself. If this is not done by a parent, it will be up to a judge to decide. No one wants that.
With all this said, unfortunately, less than half of Americans have a will. This is wholly inadequate and needs to improve. Call us today to get started.
Trusts
Trusts can be another component of a good estate plan. Trusts are legal agreements between the creator of the trust (grantor or trustor), the trustee who manages the trust, and the beneficiary. A revocable living trust is a type of trust that can help avoid court-administered probate processes, resulting in a quicker and easier transfer of assets. New York’s probate process is generally expensive, lengthy, and worth avoiding.
Trusts are also used to hold assets for a benefit of someone (beneficiary) for a period of time. The trust should be managed pursuant to a standard that states when distributions can be made. A commonly used standard allows distributions for a beneficiary’s health, education, maintenance, and support. This is usually referred to as the HEMS standard. In addition, the trust’s creator will usually decide on what ages the beneficiary will receive the trust assets in full. This is generally how a trust can work but they are highly customizable to most anything you can think of, within the bounds of the law, and can be used for a wide variety of other situations including tax planning and asset protection.
While a trust can be important, we believe it is more important for our clients to understand when they are helpful and when their cost can outweigh their benefits. Client education is an essential concept in our practice because we want them to make good decisions based on their specific circumstances.
Durable Financial Power of Attorney
A durable financial power of attorney is a document that designates someone else to act on your behalf regarding financial accounts and real property. This power is usually only used if you become incapacitated. Making a financial power of attorney “durable” allows the trusted individual to act if you are incapacitated.
Our estate planning attorneys consider this document one of the most important estate planning documents, as it can help avoid significant adverse financial consequences. This is particularly true when there is no power of attorney document and a guardian needs to be appointed by a court to handle your finances. A guardianship proceeding can be expensive, time consuming, and long. It is a very good idea to avoid it, which can be easily done with a relatively inexpensive financial power of attorney.
Finally, estate planning documents should be drafted to last for a long time, accounting for a variety of potential situations. However, the financial power of attorney document should be refreshed at least every ten years, if not sooner. This is because banks can be very difficult to deal with and having something current can mitigate potential problems. Your power of attorney should also be updated when there is a change in the law, as there was in New York in 2021.
Advance Healthcare Directives
Advance healthcare directives can be extremely important in a variety of healthcare situations. The medical power of attorney is crucial, as it appoints an agent to make decisions if you cannot make them for yourself. A living will tells your power of attorney agent and healthcare providers the type of care you want if you are seriously ill and cannot communicate. Giving clarity to everyone during this difficult time is perhaps the most important aspect of advance healthcare directives. WIthout them, no one will really know how you want to be treated in a dire emergency and who you want making these difficult decisions.
Be sure to check out this article to learn more about Advance Healthcare Directives and why they are important for your estate plan.
In Conclusion
Estate planning is essential for every adult. If you are younger,, healthcare directives will perhaps be the most important documents. For people with minor children, designating guardians could be paramount. And, for anyone with assets, a financial power of attorney allowing someone to access them during a healthcare crisis can make all the difference. And, for someone who passed away, saying who is in charge of your estate and what is going to happen to your assets is always a good thing.
Our New York estate planning attorneys can help create a comprehensive estate plan that follows your wishes and protects your loved ones. If you would like to work with The Chamberlain Law Firm, contact us here or call us at (201) 273-9763 to set up a consultation.
