Selecting an executor is an important part of planning your estate. If your plan includes a will, it is important to understand the executor's responsibilities and make sure the individual you select will be able to handle them well.
The Trump administration has proposed federal tax reform that would eliminate the federal estate tax. Also referred to as the death tax, the federal estate tax applies to residents of New York and the other states. The reasoning behind the proposed elimination is that it is a sort of double taxation, often requiring payment of taxes on funds that have previously been taxed. Even if the federal estate tax is eliminated, though, there are still reasons to develop a comprehensive personal estate plan.
Some New York residents may think of an estate plan as something that only wealthy people need. However, an estate plan is important for adults at every stage of their lives. An estate plan should also be reviewed and revised throughout a person's life as changes in assets and family make changes necessary as well.
Some New York parents may be concerned about leaving a large sum of money as an inheritance for their children. They might be worried because their children are financially irresponsible or simply because it can be difficult sometimes for anyone to suddenly come into possession of a large amount of money. While it is a good idea to discuss responsible financial management with children, a trust may be another way of protecting assets.
New York residents might not need long-term care when they are in their 50s. However, it's best to plan for such things ahead of time. Those who do need care for an extended period may choose to pay for it themselves, use government benefits or let an insurance policy pay for it. Creating a plan now could make it easier to use any of those strategies in the future.
Many parents plan dutifully to ensure that their children will be cared for when they pass. Perhaps your parents have pensions or savings that they have built up. If so, you obviously want to protect the fruit of their hard work and ensure that nothing threatens the financial security they have established.
Trusts have a broad range of applications that may be relevant to New York residents who are planning their estate. There are many different types of trusts that provide different benefits, and here are two that might be of interest.