Estate planning is very important for all estate owners who live not just in New York, but in other places around the globe. An estate plan ensures that your wish regarding your estate is fulfilled after your demise. It helps provide financial security for those you love even after your death. In New York, there are few documents that are needed for estate planning; these documents ranges from a will, a health care proxy, a durable power of attorney, etc.
In a world where information can be gotten by a single click, many people still have misconceptions about estate planning. Some New York resident feel estate planning is for the rich, like those in the Bills Gates circle. But the truth remains that estate planning is for both the rich and the poor. You don’t need to own a million dollar business before you consider planning your estate.
If you die without an estate plan, the government will take over the distribution and management of your estate. This will be done based on the intestate laws of New York.
Preventing probate after your demise
If you want to save your family the stress of experiencing the somewhat difficult probate process, it is advisable that you plan an estate that escapes this process. Without probate, your assets cannot be transferred to the designated beneficiaries.
Assets placed under a trust don’t usually undergo probate. If you need more information regarding how to create a trust, you can contact our probate attorney.
How does probate work In New York?
If you know few things about the probate process, you will know why most estate owners plan a probate-free estate. Probate is done for a few reasons and one of these reasons is to determine the authenticity of a will. Others are to determine the value of the deceased estate, to settle all unpaid debts and due taxes of the deceased, to share the assets of the deceased based on the will of the decedent, etc.
Because you won’t be around to handle the probate process, the burden will have to fall on your estate executor, and probably the beneficiaries of your estate. Trust me, the burden that comes with probate is something a grieving family shouldn’t go through.
In New York, the probate process is quite different from other cities in the US. New York has its own probate laws that guides the probate process. In New York, and other cities, the assets of a deceased can’t be transferred to the designated beneficiaries until probate has been done. This process takes place in a surrogate court with the attendance of a Judge and the estate executor who represents the estate owner and its beneficiaries.
Factors that elongates the probate process
Generally, the probate process isn’t supposed to be long but some factors and circumstances end up elongating the process. Probate can last for a few weeks, a month, or even years, depending on the estate of the decedent and how it was planned. Here are a few of these factors:
Settling the death of the deceased and sorting out creditors:
Settling the deceased’s debts is a major step in completing the probate process Regardless of the decedent’s demise, his or her debts must be settled. If the deceased was indebted to several creditors, extra time will be spent trying to figure out the terms of the debt and the right amount owed. This can end up elongating the probate process because all the debts of the deceased must be settled before the probate process can be concluded.
Estate Taxes
Estate taxes are taxes paid on some estate properties. Any estate that is valued at more than $11.5 million is usually taxed. But, estate are taxed in some states, however the figure is much smaller than the federal imposed taxes. The duration it taxes to evaluate the taxes incurred by an estate can elongate the probate process. It is required for all taxable estate to get clearance from IRS before probate can be concluded. This usually last for around 5 to 7 months after an estate tax return is filled.
Contact our probate attorney close by if you and your family need assistance in handling that probate process.