Having a will, power of attorney, and a health care power of attorney is important. Many people also benefit from having a trust done by an attorney. Trust or no trust, the important thing for most everybody to avoid is going to probate. Probate is a process that is time-consuming, costs money, and is public information. One trust to avoid is a testamentary trust, which is expensive and is also public information. Most people would not want their financial affairs to be a blurb in the local newspaper. Brokerage and retirement accounts, as well as insurance and annuity contracts, have primary and secondary beneficiary designations. These do not need to go into a will or a trust. For those who have a trust, it is necessary to fund the said trust. Naming a primary home, second home, cottage, condo, and likewise to the trust is important.
The various legal and financial minutiae of the estate process can seem overwhelming to the average person. However, with the right financial plan in place, you can ease these concerns and leave a lasting contribution to your family when you pass away. Remember to consult with an estate planning attorney and financial advisor when making these important decisions in your retirement planning process, and don’t be afraid to ask questions. There are no dumb questions when it comes to your life, legacy, and family’s financial security
Taking care of your family in the unfortunate event that something happens to you is essential in life. Having an estate plan in place can help prevent your beneficiaries from dealing with a long, contentious probate process. In addition to a comprehensive estate plan and smooth transition into the next generation, we will highlight how gifting assets while you are living can be a prudent tax move. These components of a financial plan can help provide you, your family, and beneficiaries peace of mind moving forward.
Estate planning helps an individual to identify cost effective and peaceful way to transfer their asset to their beneficiaries either during their lifetime or after their death.For a speedy and efficient transfer of an individual’s assets.
Benefits of Estate Planning
1. For The Management Of An Individual’s Property In The Event Of Incapacity.
In circumstances where a person is unable to manage their properties or finances due to severe illness or unavailability, an estate plan sets helps a person properly determine how their assets should be managed. A power of attorney, personal directives through letters of instruction and trusts can be effective tools for proper estate management.
2. For Proper Distribution Of Assets.
Estate plan is very beneficial for accurate distribution of an individual’s assets. Wills, codicils, deeds of gifts and trusts enables an individual determine how their assets will be distributed to their beneficiaries after their death to prevent disputations in future. Without an estate plan, the court will determine how the assets of a deceased will be distributed.
3. For The Protection Of Beneficiaries.
An estate plan invariably protects the interest of beneficiaries by ensuring that their shares are properly specified and preserved. If an individual has a child who is a minor, the individual can designate guardians and trustees who will oversee the financial and other needs of the minor.
On the other hand, if the individual’s children are adults, but are unable to manage finances or assets, the individual can create a trust to protect the children from making bad decisions.
4. For A Speedy And Efficient Transfer Of An Individual’s Assets.
The deed of gift and trusts are very speedy and cost effective ways to transfer one’s assets to a beneficiary. Without proper estate plan, the process of transfer of assets may be extremely cumbersome. Estate planning helps an individual to identify cost effective and peaceful way to transfer their asset to their beneficiaries either during their lifetime or after their death.
5. To Minimize Cost And Avoid Disputes.
An estate plan will specify how an individual’s assets will be managed and distributed to beneficiaries thereby leaving no room for speculations and confusion. Hence this will prevent disputations and invariably save time and money.
6. To Minimize Estate Taxes.
The significant loss of a part of one’s estate to the payment of taxes is a factor that should motivate people to establish an estate plan. Through strategic planning, people can substantially reduce or eliminate taxes by setting up trusts as part of their will, living trusts or bequeathing gifts to their beneficiaries during their lifetime.
It is most essential to practice or establish trust as another factor of estate planning because it gives the trustees powers to distribute the property of the grantor without applying for probate or any court ordered process hence, it reduces estate taxes, it controls wealth and it completely saves time.
Definition of Trust.
A trust is an arrangement where your property is managed by someone else for the benefit of yourself, your heirs or a third party. Although there are several types of trusts, one of the most commonly used is an inter vivos or living trust.
A living trust, as the name suggests, is created while you are still alive. In this type of trust, you choose a person (or entity), called the trustee, to manage the assets that are contained within the trust for the benefit of yourself or someone else. You can appoint anyone you choose to act as trustee, including yourself.
Types of trust
- Revocable Trust
- Irrevocable Trust
Get professional assistance from an estate planning attorney NYC
As there are legal requirement binding the validity of each document, it is very essential you get expert legal help to prevent costly mistakes. And to ensure your document complies with New York state laws and that your POA is the type befitting your situation, call our estate planning attorneys NYC today for expert assistance.