What Is Estate Planning?

   

Estate Planning is an important step that you can take to protect yourself and your loved ones. It is a process of making vital legal arrangements about the management and distribution of your assets upon your death or incapacity and developing a plan for your health care needs. 

Proper planning will make sure that your assets are transferred according to your wishes upon death.  It will also make sure that your health care wishes are honored and that your loved ones are spared the time, frustration and expense in managing your affairs if you become incapacitated or pass away.  A comprehensive estate plan is needed by everyone, regardless of their net worth.

 

What is my Estate?

   

Your estate consists of all of the property you own, control or in which you have an interest.  It includes real property, personal property, bank accounts, mutual funds, stocks and bonds, jewelry, cars, furniture, businesses, life insurance policies and cash.

 

What documents should my estate plan consist of?

   

An estate plan generally consists of: 

 

1.  Will-  A Will tells the world exactly how you want your assets to be distributed upon your death. It also allows you to appoint an executor, a person who you trust, to handle the administration of your assets upon death.  It is also the place where you name guardians and trustees for your minor children. Dying without a Will, or "intestate", lets the state determine the distribution of your assets. The State will also determine who becomes guardian of your children. Dying intestate could prove to be very costly and problematic for your loved ones.

 

2.  Power of Attorney-  A Power of Attorney allows you to appoint an agent known as your "attorney in fact" to transact business in your name.  A "Durable" Power of Attorney survives incapacity or disability.  It may also allow you to avoid the costly and complicated Guardianship procedure which is required under Article 81 of the Mental Hygiene Law.  All Powers of Attorney terminate at the death of the Principal.

 

3.  Living Will-  While New York does not have a statute recognizing a Living Will, the courts have stated that if you leave "clear and convincing" evidence of your intentions, they will recognize its validity.  Specifically, a Living Will tells the world your intentions not to be kept alive by artificial means under certain medical circumstances. 

 

4.  Health Care Proxy-  A Health Care Proxy allows you to appoint a health care agent to make health care decisions for you in the event you become incapacitated or incompetent.  

 

In addition, Federal law now provides that one can designate, in writing, a person who shall have the right to control the disposition of one's remains.