Isn’t Estate Planning Only For Older, or Wealthy People and Families?

No, estate planning is for everyone, young and old, wealthy or not - the size your estate is irrelevant, because whatever you have, you need to provide a plan for your family.

• If your estate is small, you will probably want to focus on who will receive your assets, who will take care of your children and manage the assets for your children, and who will administer your estate.
• If your estate is large, you may want to focus on estate tax planning, preserving your assets, arranging for the efficient and orderly transfer of your estate assets, and minimizing or postponing the amount of transfer taxes which might be due upon your death.

What is my estate?

Your estate is all of the assets you own now, and the assets you may come to own in the future. They include assets held solely in your name, as well as assets owned jointly with others, such as:

• Bank accounts
• Real estate
• Stocks, bonds and investment accounts
• Life insurance policies
• Retirement accounts
• Annuities
• Any money or payments owed to you
• Personal property such as furniture, jewelry, automobiles, artwork and collectable.

What happens if I do not have a Will, Trust or other appropriate plans?

If you die without a will, trust or other appropriate plans, state law will dictate who will receive all or part of your assets, who will act as your executor, and who may be appointed as guardian of your minor children. Your wishes are not taken into account.

And, contrary to what many people believe, if you are married, have children and die without a will as a New York State resident, your spouse does not inherit your entire estate.

What if my assets are held jointly, do I need estate planning?

Joint ownership may be a simple way to avoid probate for certain assets.  Joint ownership can considered as part of, but not a substitute for, a complete estate plan. Further, joint ownership is not a solution to the problems associated with incapacity, minor children, grandchildren, etc.

What is a Living Trust?

A Living Trust, also known as an "Inter Vivos Trust," is created during your lifetime. A Living Trust may be revocable or irrevocable.

A Living Trust is a written agreement providing for the management and disposition of your property during your lifetime and upon your death. A Living Trust provides for disposition of your property at your death in the same manner as through a will.

What are Testamentary Trusts?

Testamentary Trusts are trusts which are created upon your death, and are typically established by the terms of your will.  Such trusts do not address management of your assets during your lifetime.

What is Probate?

When you die, your will is submitted to the Court as part of a process called Probate.  Once the will is accepted by the Court, and the executor named in your will is approved, your assets can then be transferred and administered as provided in your will.

Do I have to pay Estate Taxes?

That depends upon the value of your estate, and the year in which you die.  Presently, New York taxes estates which exceed $1 million dollars in value.  The federal government presently has no estate tax for individuals who die in 2010, however, for individuals who die in 2011, federal estate tax will apply after a $1 million exclusion.

What is the effect of my divorce on my Estate Plan?

You should always consult with an attorney to see about changing your will and estate plan when your marital status changes, assuming that you do not want your ex-spouse to inherit your assets.

How often should I review or update my Estate Plan?

You should review your estate plan every few years, or whenever there is a major change in your life such as the birth or death of someone you named as a guardian or executor, a change in marital status, or a large increase or decrease in the value of your assets.

What is a Power of Attorney?

A Power of Attorney is a document by which you appoint someone else to act as your legal agent.  Your legal agent can then manage your money or property, or do whatever else you have authorized your agent to do for you.  It is often important for spouses to provide each other with Powers of Attorney as part of a comprehensive estate plan.

What happens if I am cohabitating or gay and I do not have a Will, Trust or other appropriate plans?

If you are cohabitating or gay and you die without a will, trust or other appropriate plan, your assets will not be distributed to your partner.  In fact, because state law dictates who will receive your assets and who will act as your executor, you wishes will not be taken into account regardless of whether you agree with what the law says.