Many New York Residents may be interested in securing their financial legacy. It is important to understand that this security may be achieved through a combined plan that may include a will and a trust.
There are several steps involved with proper estate planning. The first requires an honest and comprehensive look at one's financial situation. Each case is unique to itself and simple differences can have major effects on how an attorney draws up the paperwork. Aspects to consider when initially planning for an estate include special needs and underage beneficiaries, total net worth along with physical assets like property, and any liabilities, such as credit card debt, loan debt or other long-term bills. All of these factors should be calculated and considered before moving on in the estate planning process.
The next step in the process is to create a plan for dividing assets among beneficiaries. This step focuses on which party receives what asset, and the decision making process can be difficult. A lot of thought must go into this choice as it can have long-lasting effects. In addition, at this time it is important to decide on a responsible trustee for the estate. This individual must be trustworthy and able to make unbiased decisions regarding the estate.
An estate planning attorney may be able to help with these decisions. After reviewing the documentation and assets that a client might hold and the preliminary plans for dividing them, the attorney may be able to help a benefactor understand the different tools that might help him or her achieve those goals. The attorney could also draft the necessary documents for establishing trusts and drafting wills.
Source: Nasdaq, "Estate Planning Guide 101: A Basic Guide To Establishing Your Estate ", Joe Young, October 15, 2014