When most people consider how they will pass on their assets to heirs, they first think of naming beneficiaries in a will. While this is a common way of ensuring a thorough asset distribution, estate holders may also want to consider setting up trusts.
3 ways to help your parent avoid probate
Are you concerned about receiving your full inheritance? If your parent has a will, it will have to go through probate, which can be costly and time consuming. Do you wish you would not have to worry about securing your inheritance directly? Thankfully, there are some ways to completely or partially avoid probate.
Creating an estate plan
New York residents who do not have an estate plan may want to create one because it can take some of the burden off their loved ones. One of the main elements of an estate plan is a will. With a will, testators can name who they want their assets distributed to as well as a guardian for their minor children. A trust is another tool that can be used to distribute assets.
Fundamentals of a trust
A trust is one of the many estate planning tools New York residents can use to ensure that their assets are handled according to their wishes. While not every type of trust is appropriate for every person, the revocable living trust is a common one and may be used for many financial situations.
Appointing the right people in an estate plan
Choosing who will fulfill various roles in an estate plan is important, but it may also be a difficult part as well. New York residents may be postponing the creation of an estate plan because they cannot decide who to appoint as executor under their will or for other roles, or they might already have people in mind. However, they might want to discuss those choices with an attorney who may be able to assist in evaluating their fitness for the position.
Is it wise for your parents to buy long-term care insurance?
Due to longer life expectancies, more people these days are considering whether they should purchase long-term care insurance. If your aging parents are very wealthy, they do not need to buy this kind of protection, and if they are on the opposite end of the income scale, they will probably find it unaffordable. For those in between, long-term care may be an option. However, in making helping your parents make a decision, there are certain pitfalls you should be aware of as well as some alternatives that may prove to be a better fit.
1031 exchanges involving appreciated land
Many New York farms have been owned by the same family for generations. With property values rising, some owners might be looking to cash out but are concerned about the capital gains tax they might have to pay on the appreciation. There is a provision in the Internal Revenue Code, however, that might allow them to defer that tax at least temporarily if the sale transaction is properly structured.
