5 Estate Planning Tips Youve Probably Never Heard of (But Need to Know)
Planning for death or incapacitation is something everybody needs to do. The fact of the matter is that if you don’t have a plan in place, you’ll leave your loved ones with the task of trying to pick up the pieces. Unfortunately, many people think that when it comes to estate planning, all you need to do is write out a will and buy some life insurance. But, there’s much more you may need to think about when figuring out your plan.
Ensure your assets are protected and secure your family’s future with the help of a New York estate planning attorney. At New York Legacy Lawyers, our experienced attorneys can guide you through the complexities of estate planning, offering tailored advice to suit your unique circumstances. Don’t wait until it’s too late; schedule a consultation with us at (718) 713-8080 to gain valuable insights into optimizing your estate plan and to discover how estate planning can be a valuable gift for your loved ones.
Here are five must-know estate planning tips you need to consider when putting together your final plan.
1. Start Your Estate Planning Right Now
As much as we like to pretend we know what’s going to happen tomorrow, there’s no way of being sure. You can expect the unexpected — but you can prepare for it. Someday your family will need to know how you want(ed) your estate managed. Don’t leave them without direction or support.
The best way to ready your loved ones for a worst-case scenario is by starting the estate planning discussion with an estate planning attorney as soon as possible.
By taking the steps to put a plan in place now, your family and loved ones won’t have to worry as much about putting your affairs in order when something happens to you.
2. Create a Living Will
When we think of estate planning, often we think about planning for death. But, there are many of situations where you could be unable to make decisions while still being alive.
A coma, persistent vegetative state, paralysis, mental health challenge, or some other unforeseen issue could conceivably render you incapacitated while still living.
A living will, or advance directive is a plan you put in place to cover other situations in which you’re unable to make decisions by yourself.
Having an advance directive in place will help your loved ones, or healthcare professionals, make decisions if you cannot.
3. Plan for Guardianship
If you have children or are the legal guardian of an adult, part of your estate planning should also reflect an adequate plan for their needs.
Sorting out guardianship can be a long and messy process, that can put a lot of stress on those involved. You can avoid putting your loved ones through undue misery by having a plan for who will assume responsibility for your children, what steps they will need to become guardians and all the information they will need to raise and support your loved ones in your place.
4. Share Login Info
We live in a digital world in which our passwords are everything.
In the event of your death, your loved ones may need to access some of your accounts to either pay bills, find information, or retrieve family photos.
As part of your estate planning, you need to figure out what will happen to your digital assets — including your passwords.
5. Decide Power of Attorney
As we said before, in the event of your incapacitation, someone is going to have to make your decisions for you. Power of attorney is a way dictating who will make those decisions.
There are two primary versions of the power of attorney you need to consider during your estate planning.
First, there is the financial power of attorney. Whoever you grant this power to will be responsible for making your financial decisions if you are physically or mentally unfit to do so.
The medical power of attorney is similar. The person you grant this power to will make your medical decisions for you if you are unable to.
| Estate Planning Tips | Description |
|---|---|
| Start Your Estate Planning Now | Begin estate planning early to provide direction and support for your loved ones in unexpected situations. |
| Create a Living Will | Establish a living will or advance directive to plan for incapacitation, ensuring your healthcare decisions align with your wishes. |
| Plan for Guardianship | Include a comprehensive plan for the care of children or dependents, specifying guardianship arrangements and necessary support information. |
| Share Login Info | Determine the fate of digital assets and share login information to grant access to accounts and important data after your passing. |
| Decide Power of Attorney | Designate a financial power of attorney for financial decisions and a medical power of attorney for healthcare decisions when you are unable to make them. |
Guardianship vs Power of Attorney
When faced with the task of making decisions for an individual who is unable to do so themselves, two options commonly arise: guardianship and power of attorney. Although both options serve similar purposes, they have distinct differences worth noting.
Guardianship is a legal arrangement obtained by submitting a petition to the court. It involves giving someone, typically a close family member, the authority to make decisions on behalf of the incapacitated person in personal, medical, financial, or all areas. The scope of guardianship can be limited or encompass a wide range of decision-making powers. In certain situations, a guardian may also assume the role of a conservator, responsible for managing the financial affairs and property of the individual under their care.
In contrast, a power of attorney is established as part of an individual’s estate plan and becomes effective when they become incapacitated. It grants authority to someone chosen by the individual themselves to act on their behalf. There are various types of powers of attorney to consider:
- Durable power of attorney: This authorizes the agent the authority to carry out financial transactions even if the individual loses the ability to comprehend the purpose of the document.
- General power of attorney: This authorizes the agent the authority to handle specific financial transactions on behalf of the individual, typically activated upon incapacitation.
- Springing power of attorney: This authorizes the agent to act only after a specific event occurs, such as mental or physical incapacity.
- Limited power of attorney: This authorizes the agent to act within defined boundaries as per the individual’s instructions.
- Healthcare power of attorney: This authorizes the agent to make healthcare decisions on behalf of the individual, encompassing matters like nutrition, hydration, and organ donation. The level of autonomy and supervision varies between guardianship and power of attorney arrangements.
The level of independence and oversight differs between guardianship and power of attorney. With a power of attorney, the agent has more decision-making power, with outside authorities becoming involved only in cases of alleged misconduct. However, a court-appointed guardian is accountable to the court and may face legal consequences for breaching their fiduciary duty. This highlights the importance of establishing a power of attorney prior to experiencing incapacitation.
Considering the cost and oversight involved, obtaining guardianship can be an expensive and time-consuming process. It necessitates court proceedings, medical evaluations, and ongoing court supervision. On the other hand, a power of attorney can be established in advance, eliminating the need for guardianship and its associated expenses.
When it comes to guardianship and power of attorney matters, a skilled New York estate planning attorney at New York Legacy Lawyers can provide valuable guidance and support. With extensive experience and knowledge of New York laws, our priority is to protect your assets and honor your wishes. Schedule a consultation with us today to navigate complex legal processes and provide the necessary advocacy.
Must-Have Estate Planning Tips
Nobody wakes up thinking about estate planning (except maybe us)! To think about planning for your estate is pondering your own mortality. But, it is necessary, responsible, and even kind. You owe it to your loved ones to put a plan together ahead of time, so they won’t have to worry should the need for it arise.
By following these estate planning tips, you’ll be able to put together a concrete plan to help and protect your family just in case. And, by preparing now, you won’t have to worry about having to do it later.
If you’d like a little more help with your estate planning or putting together a will, we will help.
Contact us for more information about our available services or to schedule a consultation today with our New York legacy lawyers. Our New York estate planning attorneys offer a comprehensive range of services specifically tailored to address your unique needs, whether it’s creating wills, establishing trusts, or ensuring asset protection. Take the first step towards securing your legacy by scheduling a consultation with us at (718) 713-8080 today.
via New York Legacy Lawyers by Yana Feldman and Associates yanafeldmanlaw.com/5-estate...
