New York City Estate Planning Lawyer

New York City Estate Planning Attorney

Your family is everything to you, so making sure they are secure after your passing is most likely at the top of your priority list. When you’re ready to begin, you need a New York City estate planning lawyer.

What Is Estate Planning?

Planning your estate empowers you to secure your future & assets, as well as safeguard and manage your financial resources, personal items, and property beyond your lifetime or in the event of your incapacitation. This involves creating wills, trusts, powers of attorney, and healthcare directives to ensure your wishes are carried out. An estate plan will also address the transfer of property, guardianship for minor children, tax planning strategies, business succession planning, and any charity giving plans.

Do I Need an Estate Planning Attorney In New York?

If you have any property in New York, it is important to create an estate plan. Although some estates can be relatively straightforward, many involve intricate details, and it is common to underestimate the need for planning. Do not leave your family stuck in the probate process that could have been avoided with comprehensive estate planning.

The estate planning process in New York means addressing key areas, including:

• Creating a detailed list of your assets and liabilities
• Determining the legal ownership of your property
• Appointing guardians for any minor children or dependent adult children
• Deciding who will manage the assets that will be going to your beneficiaries
• Designating beneficiaries for life insurance and retirement accounts
• Streamlining the transfer of assets to avoid probate
• Preparing a will
• Establishing revocable and irrevocable trusts
• Reviewing insurance coverage
• Developing strategies to lessen the cost and tax burdens on your estate
• Selecting professionals to help you craft your estate plan
• Planning for funeral and burial arrangements
• Performing regular updates and reviews of your estate plan
• Ensuring there are sufficient funds to cover any outstanding debts

New York City Estate Planning Tools

Although each estate plan is customized to reflect the individual situation of the estate holder, there are certain resources available to construct a robust and secure plan. These tools can provide lasting benefits for you and your family.

Last Will and Testament

Upon your passing, a will provides a legal way to designate how your possessions will be allocated to your beneficiaries. It also allows you to express your preferences regarding who will care for your dependent children, specify your desired funeral and burial arrangements, and hopefully reduce potential disputes among relatives or creditors.

Trusts

Trusts can be powerful instruments in estate planning. They can offer grantors significant control over the management and allocation of their assets. Depending on the specific trust structure used, it is even possible for the grantor to maintain access to their assets during their lifetime while also protecting against lawsuits and tax burdens.

Some trust structures that may be available are:

• Irrevocable trusts: These offer tax advantages while safeguarding assets against long-term care costs. However, they typically have limited flexibility for modification or termination after they are established.
• Revocable trusts: Grantors can maintain considerable access to and authority over the trust assets. These are also a valuable tool to bypass the probate process.
• Special needs trusts: These are designed to support family members with special needs while also allowing them to maintain their eligibility for important government assistance programs like SSI and Medicaid.
• Charitable trusts: These trusts provide a tax-efficient method to support charitable organizations and designated beneficiaries.

Power of Attorney

A power of attorney (POA) is a legal document that names an individual or group of individuals as your agent. They are trusted to act on your behalf regarding specific decisions, as outlined in the legal document, if you are unable to make the decisions yourself. The agent could be granted the authority to manage your bills and investments or conduct other financial transactions on your behalf.

Medical Directives and Medicaid Planning

A medical directive can allow you to specify your healthcare wishes in case you become incapacitated. This directive can be included with your estate plan as well as a plan to secure Medicaid for nursing home care without jeopardizing your family’s wealth.

Estate Tax Planning

New York has complex estate tax laws, with the state imposing an estate tax on estates over $7.16 million, with rates from 3.06% to 16%. This means that if the total value of an estate is below this threshold, it will generally not be subject to estate tax.

But the state has a unique “estate tax cliff.” If the estate’s value exceeds the exemption threshold by more than 5% ($7.518 million), the entire estate becomes subject to taxation – not just the portion above the limit. This cliff provision means those with substantial estates need to carefully plan to avoid any tax burdens.

When Should You Begin to Think About Estate Planning?

It is smart to begin estate planning as early as possible, especially as 67% of Americans have no estate plan. Many individuals postpone it, whether they believe they have ample time or they don’t want to think of their death or incapacitation. An estate plan offers reassurance that your desires are honored and reduces potential disputes among surviving beneficiaries.

If you have established significant assets like property, investments, or a business, got married, divorced, added new members to your family, or were recently diagnosed with a serious or terminal medical condition, it is recommended that you create an estate plan.

Steps for Estate Planning In New York City

The estate planning process involves several key steps, including:

1. Consult with an estate planning attorney: The first step you should take when estate planning in New York City is to consult with an estate planning attorney. They can be your advocate from the very beginning until your estate administration is closed. A knowledgeable estate planning attorney can ensure you understand the ins and outs of your plan and that it is legally sound.
2. Assess your assets and liabilities: You should make a comprehensive inventory of your assets and liabilities. This includes real estate, personal property, life insurance policies, retirement accounts, stocks, and business interests, as well as mortgages, personal loans, and credit card debts.
3. Determine your estate planning goals: Take a look at the circumstances of your life, such as if you need to provide for family or dependents, you want to minimize taxes, avoid probate, or any other things you want addressed within your estate plan.
4. Draft estate planning documents: There are several documents you may need to aid in your estate plan, such as a last will and testament, trusts, a durable power of attorney, healthcare proxies, and beneficiary designations.
5. Understand New York and federal taxes: Your estate planning attorney can help you understand which taxes your estate may be subject to and what the most effective methods are to avoid costly taxes that would become your family’s responsibility.
6. Plan for long-term care and incapacity: Another aspect of estate planning is to prepare for long-term care costs and potential incapacity. This could be getting long-term care insurance or planning for Medicaid.
7. Review and update your estate plan regularly: Estate planning is not a one-time event. You will need to review it periodically to ensure everything is up to date. This can be especially important when you experience major events like a marriage, divorce, a new child, or significant changes in your financial situation.

Common Estate Planning Mistakes to Avoid

Estate planning can be overwhelming, and there are many mistakes people can make either before they begin estate planning or even after they have an estate plan.

Believing Estate Plans Are Only for the Wealthy

It is a common misconception that estate planning is only for those who are wealthy. While the complexities and scale of an estate plan may differ based on the estate value, the fundamental reasons for having one apply to everyone.

Without a plan, New York law will dictate how your assets are distributed, and this may not align with your wishes. This could mean that state law will decide how your assets are distributed, who will care for your minor children, and who will make medical decisions on your behalf, potentially creating family disputes and subjecting your loved ones to costly and time-consuming probate.

Not Updating Your Estate Plan

Many people neglect regularly updating their estate planning documents. Your plan should at least be updated every time something significant happens in your life, such as the birth or adoption of a child, marriage, divorce, new property, or you start a business. But it is recommended you review it every few years to ensure it represents your current wishes.

Relying on Generic Estate Plans

Estate plans are not always “one size fits all.” Generic estate plans frequently fail to account for the specific nuances of an individual’s life. A well-designed, individualized plan considers your specific life circumstances and what your goals are, from minimizing the impact of estate taxes on your beneficiaries to ensuring your charitable gifts are made.

Seeking General Advice

Estate planning is a specific legal area with complex tax implications. It is not recommended to seek guidance from financial advisors or attorneys who do not understand estate law. Choosing a knowledgeable estate planning attorney is the most effective way to ensure your plan is legally sound and aligns with your wishes.

How a New York City Estate Planning Attorney Can Help You

Estate planning in New York City can be either straightforward or complex, depending on the estate. No matter how uncomplicated you believe your estate may be, you need a knowledgeable estate planning attorney. Your attorney can ensure that your estate plan follows your wishes, provides for your loved ones, and minimizes the strain of probate.

FAQs

Q: What Are the Basic Components of an Estate Plan?

A: In New York City, the basic components of an estate plan are a last will and testament, trusts, appointing a power of attorney, healthcare directives, beneficiary designations, and planning for estate taxes. Every estate plan will be different and tailored to a person’s unique situation, so some may include these components, and some may not need them at all.

Q: How Often Should I Review and Update My Estate Plan?

A: It is recommended that you review your estate plan every few years or whenever significant life events happen. This could be a new marriage or divorce, the birth or adoption of a child or grandchild, a major death, significant changes in your financial status, moving states, serious illness or disability, or changes in relationships with those named in your estate plan.

Q: What Happens if I Die Without a Will?

A: If you die without a valid will, your property will be distributed according to New York intestacy laws. These legal guidelines dictate the allocation of assets and prioritize immediate relatives like the person’s spouse, children, or parents. The absence of a will also means you forfeit the ability to choose who will administer your estate, which can lead to delays and complexities while your affairs are being settled.

Q: What Is a Power of Attorney, and Why Might I Need One?

A: A power of attorney (POA) is a legal document that allows you to appoint another person to act on your behalf if you become incapacitated. This person, called an agent, can be authorized to manage your financial assets, make healthcare decisions, and handle your legal affairs. It is recommended that you have a POA to provide peace of mind that your affairs will be handled if you are unable to do so and to avoid complex guardianship proceedings.

Q: What Is Probate, and How Can Estate Planning Help My Loved Ones Avoid or Simplify It?

A: Probate is a process in which the Surrogate’s Court oversees the administration of a deceased person’s estate. This includes validating the will, appointing an executor, identifying and valuing assets, paying debts and taxes, and distributing assets to beneficiaries. Probate is costly and time-consuming. You could set up living trusts or joint ownership rights. Meeting with an estate planning attorney can ensure that your estate planning strategies relieve the burden of probate on your loved ones.

Consult With a Trusted Estate Planning Lawyer

If you are ready for peace of mind that your estate is well planned out and your loved ones will be protected, contact our estate planning lawyers at Greco Law. We can guide you through wills, trusts, asset protection, and more.