Estate Planning
Through careful estate planning, an
individual or couple can meet the following objectives:
1) Effect the transfer of his/her wealth in accordance
with their wishes
2) Minimize estate, gift and generation-skipping
taxes;
3) Minimize current income taxes; and
4) Provide for the client's personal care and management of
the client's assets during disability or incapacity.
Some of the tools used to meet these
objectives are the following:
A will, or last will and testament, is a
legal document that formally states who you want to receive
your estate and names an executor to settle your affairs.
Without a will, your assets will be distributed according to
the intestacy laws of the state of New York.
An individual should review their will every few years in
case it needs to be revised based on significant changes in
their circumstances. For instance, additional
children, divorce or remarriage may require changes in the
will so that the individual's wishes will still be carried
out upon their death.
In order for a will to be valid, there are strict
requirements for the execution of that will.
A trust is a legal entity used to hold title to property for
the benefit of one or more persons. The person creating the
trust is the grantor and the person holding title is the
trustee, the persons intended to benefit from the trust are
the beneficiaries.
There are many types of trusts:
Testamentary Trusts, Inter Vivos or "Living" Trusts,
Supplemental Needs Trust, Spendthrift Trusts and Irrevocable
Trusts, to name a few.
An inter vivos or "living trust" is a
trust created during the lifetime of the grantor and can be
changed or revoked during their lifetime. The grantor
is typically the initial trustee as well as the initial
beneficiary of the trust with his or her spouse and children
as the ultimate beneficiaries of the trust.
Some reasons clients may prefer using a
trust as opposed to a will may be to 1) avoid probate 2)
privacy 3) ease of management of assets in the event of
incapacity and 4) reduce estate expenses.
A power of attorney is a document that allows you to choose
who will manage your legal and financial affairs in the
event you become disabled or incapacitated.
A living will is a document that provides an individual's
instructions regarding medical treatment where that
individual cannot completely make those decisions for
themselves. The individual may include specifics as to
what medical treatments the individual may want or refuse.
A healthcare proxy appoints an agent to make medical
decisions on behalf of the individual.
In New York State, there is no statutory authority for a
living will like there is for Health Care Proxies. As
such, a living will must have an accompanying health care
proxy.
