Some people in New York who are creating an estate plan may want to incorporate philanthropic planning into their estate plan. This can be beneficial to families, can be a good tool for wealth management and can also be a way for a person to create a legacy.
An estate plan can be beneficial in reducing and keeping tax bills to a minimum. However, New York residents and others may benefit from estate planning in other ways as well. For example, it allows a person to organize important documents and other items that may need to be accessed quickly after he or she passes away. These documents may include passwords to digital files, a list of debts or a summary of that person's final wishes.
A well-developed estate plan provides peace of mind and reduces the risk of family disputes. Sometimes, only a simple will is needed to dispose of estate assets. In other cases, however, the estate plan might include trusts, powers of attorney, life insurance policies or other planning instruments. People in New York should keep a few things in mind as they approach their estate plans.
Small business owners living in New York or elsewhere have a strong incentive to create a will. Without one, it may be up to the government to decide who gets control of the business and its assets. This could have unintended consequences such as a spouse inheriting the company even if it isn't in that company's best interest. Furthermore, it is a good idea to have life and disability insurance as part of an estate plan.
A recent Caring.com survey found that just over 40 percent of American adults have estate planning documents. While some New York residents may think they do not need an estate plan, such planning can be important for adults of all income levels.
Anyone who owns property in New York can benefit from considering how they want to handle estate planning. Estate planning involves how a person wants their assets distributed upon their death as well as protection of assets during the person's lifetime. A common mistake that many people make when planning their estate is not properly allocating estate proceeds to charity.
As people in New York consider retirement and their futures, they may also begin to think about estate planning. Over 70 percent of Americans do not have an updated will or other estate documents, including a number of people who are reaching retirement age. These documents can help provide peace of mind to the people who create them as well as make the practical aspects of death much easier for family members and other loved ones.
Since there are now many new types of assets available to New Yorkers, it's important to know how to account for them in an estate plan. For instance, those who have digital coins will need to find a way to grant access to executors and other designated parties. Currently, 42 states have laws allowing digital assets to be managed in a similar fashion to physical assets.
New York residents may know that changes to the tax code could have an impact on an estate plan. However, there are steps that individuals should take to protect their wealth regardless of whether or not there are any significant changes on the horizon. For example, it can be a good idea to review a plan regularly to check whether beneficiary designations or terms of a trust need to be changed.
Parents in New York may have many issues to consider when creating an estate plan. If they intend to leave money to their children, it is important to think about when they should be able to access that money. Individuals have the option of making distributions from a trust dependent on certain events taking place or on a predetermined timeline. There is also the option of making distributions based on other criteria a grantor deems appropriate.