Essential Questions that You Need to Ask an Estate Planning Attorney
Estate planning is a necessary activity, though it can end up being daunting. Estate planning is all about preparing for life’s inevitable events. Making decisions on how to dispose of your assets after you die is part of estate planning. For your intentions and wishes to be honored you have to create a good estate plan to assure this. There are many pertinent questions to ask your estate planning attorney about your carefully prepared estate plan. This article focuses on the pertinent questions you should ask your estate planning attorney to develop a solid estate plan that will make the inheritance of your assets easier and less costly. This article not only gives you the right questions to ask the estate planning lawyer it also provides the right answers to those questions
Is It Necessary for My Will to Be Updated?
A will can be probated regardless of how ancient it is. Depending on how old the will is and whether it is still legal under state law, this position can be advantageous or disadvantageous. The problem is that your circumstances might have changed. According to estate planning pros, a will should be revisited every two to three years or if major life changes occur. Life events such as having a new child, becoming a grandmother, changing marital status, experiencing financial success, experiencing financial reverses, changing in-laws, or moving to another state should all prompt you to amend your estate plan.
Should I Consider a Revocable Living Trust?
Traditionally Revocable living trusts were intended to help avoid probate. While you’re still alive, you can create a revocable living trust who will take care of your estate. The estate planning lawyer you’ve will draft an agreement on your behalf, after which you will then retitle the majority of the estate to your trust. A trusts’ income can be used to cater to the requirements you might need during your lifetime. In any case, if there is a change in opinion, a trust can easily be updated to reflect new facts.
You can appoint yourself as a trustee, or name a trusted friend or the bank trust department. A backup trustee can be appointed to take care of your estate when you are not available.
How Much Will My Spouse and Children Inherit in the event I Die Today?
The most important thing is to make sure that your spouse will be financially secure when you die. Although most assets left to your spouse are tax-free, estate taxes may diminish the amount your children get. It’s a smart idea to incorporate tax-saving strategies into your estate plan. If your estate is worth more than an exemption amount, you should evaluate potential taxes on your estate in New York then consult your estate planning lawyer to implement tax-saving strategies.
Should I create a Living Will?
These documents are about health-related issues, not about money. In any event that you are terminally ill, your living will usually declare if you would need life-sustaining procedures. A health power of attorney, which is far more comprehensive than your living will, gives you the power to nominate an individual who will make health decisions for you in any event you are unable.
Why have a Durable Power of Att0rney?
A strong estate plan should include a durable p0wer of att0rney. By any chance incompetent or incapacitated to make your own decisions this document permits you to appoint an individual who will do that for you.
Are My Life Insurance and Retirement Beneficiaries to be included in my estate plan?
Your life insurance policies and other retirement plans are not governed by what you’ve written in your will, and they do not pass through your will; instead, they can be inherited directly by a loved one, not on your will.
Frequently Asked Questions
Is there a possibility for a will to pass through probate in NY?
Provided that the will is valid under state law it can go through probate.
After how long should one update a will?
Estate planning experts’ advise individuals to update their wills after two to three years or after a major life event happens
What is a revocable living trust?
This is a document that is created and can be changed over time. It is used to help one avoid probate.
What is the benefit of having a revocable living trust?
The document helps avoid probate and protect the privacy of the trust owner and beneficiaries of the trust as well as minimize estate taxes.
Are the assets left to my spouse taxed?
Most of the estate left to a spouse may pass free of taxes
What do you mean by a medical power of attorney?
In this paperwork, you appoint a person who will make health decisions on your behalf.
How does having a durable power of attorney help?
The POA helps appoint an agent who will do some of the things on your behalf in any event you are incapacitated.
Why is it crucial to address life insurance?
This is crucial since these assets are not controlled by terms of your will, nor do they pass through the will, they pass directly to the named beneficiary.