New York residents may be able to plan for what happens to assets after they die by creating a will or trust. However, there is also a way to plan for what happens if an individual becomes mentally incapacitated while still alive. By adding a power of attorney, an individual can appoint an individual or entity to manage his or her financial affairs.
Selecting an appropriate executor for your will ranks among the many important decisions you need to make as you plan your estate. Understanding the duties of an executor in New York can help you make the right choice.
New York residents might like to know about funeral trusts. Planning one's own funeral ahead of time by using a trust will make the process much easier down the line for surviving family members. A funeral trust also allows a person to arrange a service based on personal preferences.
New Yorkers who own portfolios of real estate holdings as investment properties may feel that they can't sell them because of the capital gains taxes that they might face. These portfolios can be optimized, and the people can use the 1031 exchange to sell their properties without paying capital gains taxes while moving into more passive management roles.
While a qualified personal residence trust may be less necessary for people in New York and others throughout the country today because of the large exemptions for estate and gift tax, many people will still have these as part of their estate plan. A QPRT works by removing the home from a person's ownership and placing it in a trust for a fixed amount of time. This reduces taxes on the home at the person's death. If the person dies before the end of the fixed term, the benefits are lost. Neither the grantor nor the spouse can repurchase the home at the end of the fixed term.
As you prepare for your second marriage, it is imperative to take another look at your estate plan. Entering another marriage means you will have a blended family. Without proper preparation, there can easily be inheritance conflict once you pass away. You should take certain preventative steps to keep the peace among family members.