Estate planning involves designating individuals who will be passed down your assets and who will handle your asset related responsibilities.
When it comes to estate planning, you need to be thorough and careful in how it’s done. Everyone should avoid some common mistakes, which include forgetting to update asset ownership, not understanding the plan, and designating outdated beneficiaries. Here’s what you need to consider during estate planning:
Wills and Trusts
In every estate plan, the most crucial elements include the deceased’s will and trust. These documents lay down the essence of what you would like to be done with your assets and properties in the event of an incident where you are left incapacitated.
A will lays down the division of your assets and property among your beneficiaries, as per your instructions. At the same time, a trust protects your finances and property by reducing the taxable amount. If both are absent, the state is left to decide what to do with your remaining wealth.
Power of Attorney
The power of attorney is a position granted to an individual whom you believe is capable of making decisions on your behalf. A power of attorney signifies that they can handle your assets and manage all financial transactions, as you would have.
Again, it is essential to create this position as the court can step in on your behalf to make those decisions for you. These decisions may sometimes not be the ones you would have made.
Designated Beneficiaries
As start allocating your assets, you will assign them to certain parties called beneficiaries. These beneficiaries will be entitled to your funds and property. In essence, they will be your heirs. A common mistake people make here is forgetting to update their beneficiaries, such as having property left for their ex-spouse or assign the same thing to more than one person.
In order to avoid long, drawn-out legal battles following your demise, make sure your estate planning lawyer keeps the list of beneficiaries updated.
The Effect Taxes Have on Your Estate
Estate tax refers to the rate of tax that is deductible from your inheritance. New York estate tax is outlined in these forms.
Your beneficiaries or heirs may have to pay these taxes on whatever asset or property they inherit.
Do You Have a Legal Executor?
A legal executor helps execute your estate plan in your absence. They are responsible for carrying out the tasks and duties assigned by you. A legal executor needs someone you trust and believe has your best interest and will make wise decisions on your behalf.
If you’re looking for an estate lawyer in Queens, Brooklyn, or New York, you’ve come to the perfect place.
At Ledwidge & Associates, P.C., we are a reputable legal firm with fifteen years of experience. Headed by Joseph Ledwidge, an expert probate lawyer, our firm is equipped with dedicated expertise to handle complex legal issues. We also provide services that include hiring a family attorney, probate lawyer, litigation lawyer, Divorce Attorney Brooklyn, Divorce Attorney Queens and much more. Get in touch with us to book a consultation and seek professional representation in legal matters.
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