New York residents who have individual retirement accounts can use two types of IRA trusts to protect any funds that are left to heirs. Individuals can spend IRA funds as they wish as long as they only take the mandated minimum required. However, for heirs that may have a tendency to not spend money wisely, account holders can use a trust to make sure that the funds are distributed in a sensible manner.
Two thirds of older Americans in New York and elsewhere have not put away funds for future care expenses. A survey by The Associated Press-NORC Center for Public Affairs Research, which polled 1,341 Americans, revealed this number.
An estate plan may give a testator more control over his or her assets after death. However, New York residents should know that without good communication, an estate plan could lead to fights between family members. A disorganized plan could also make it difficult for estate holders preserve wealth for future generations.
Nobody wants to think about aging and losing their health, but it is far better to plan for such circumstances than it is to neglect their eventual probability. According to the Family Caregiver Alliance, there is a 68 percent likelihood that adults age 65 and older will become mentally impaired or disabled in two or more daily tasks. You can mitigate the consequences of such events by effectively preparing in the following ways.
New York residents who are getting married for a second time may want to consider some changes to their estate plans and how they manage their finances. For example, people should be careful about commingling their assets with a new spouse if that party is still involved financially with a previous spouse. Creditors are not bound by divorce settlements, and joint accounts could be vulnerable as a result. People might want to talk to an attorney about making sure that property owned by one or both parties is titled correctly.