Some New York residents might think they do not need an estate plan because they have no children or close relatives or because their only close relative is a spouse. However, there are a number of other reasons to create one.
Many people wishing to leave their family home to their children after their death make their children joint tenants to the home. These people wish to avoid the time and expense of probate. As joint tenants, the children are considered part-owners of the home and upon the death of the parents, share equally in the home.
The way digitization has changed the world has brought new challenges to estate planning. Best practices and the laws pertaining to digital assets often lag behind technological advances. New York residents may be interested in learning why protecting digital assets is just as important as protecting physical assets.
New York residents with significant art collections may want to think about the estate planning process. While there's often a significant financial value in art investments, most buyers develop a collection due to aesthetic and personal tastes. As such, a collector may think of their artwork as a treasure to enjoy during life rather than a legacy to handle as part of an estate plan. However, when one does not make advance decisions about what to do with their collection after death, they may leave behind serious problems for their family.
It is important to revise and update an estate plan after major life events, and a divorce is one of them. New York residents should give a copy of the divorce agreement to the attorney who is assisting with the estate plan because they may still have certain obligations to an ex-spouse.
Getting an estate plan together may be a New Year's resolution for some people in New York. To start, an estate planner will need a last will and testament. This directs assets to beneficiaries. Before creating a will, however, one should review their assets and address any issues related to property ownership or other unfinished business.
An estate plan can be beneficial to anyone who lives in New York, regardless of their age or level of wealth. The first step in the process is to create an inventory of assets that may need to be transferred upon passing. These assets could include life insurance policies, the title to a car or the title to a home.
Life insurance can be a tool for people in New York to help them plan for the future. As the youngest members of the baby boomer generation will turn 55 in 2019, many are turning their thoughts to estate planning, including how to pass on their property to their loved ones after they are gone. Life insurance can help people transfer wealth and plan for the future on multiple levels. According to some studies, 42 percent of baby boomers don't have an estate plan in place. Many more who do have wills in place have not reviewed the documents in years.
New York residents are strongly encouraged to have a will as part of their estate plan. In some cases, the will itself will be sufficient to accomplish a person's goals. However, there is a chance that more than just a will is necessary to create a proper estate plan. It is essential to understand that there are many different ways to transfer assets such as using a beneficiary designation or payable on death designation.
When individuals living in New York establish an estate plan, many of them opt to designate a trusted friend or relative with power of attorney. Power of attorney allows an appointed individual to act on behalf of somebody who is no longer able to make decisions for him or herself.