How To Avoid New York Estate Planning Issues
Not many people enjoy the act of planning their estate, but it is an important endeavor, particularly if a person has a large circle of family and friends. Unfortunately, far too many people attempt to plan their own estate, without legal help, and too often it results in their beneficiaries being entangled in a legal quagmire after their passing. While even a knowledgeable attorney may make the occasional mistake, Westchester County estate planners will sometimes fall into traps that an attorney might see coming.
Do Not Delay! Estate planning may feel like a process that can wait, but in truth, one never knows how much time they have, and the sooner one has an estate plan in place, the greater peace of mind it can offer. As one might imagine, not everyone thinks about issues like long-term care when they are still young, but unfortunately, tragedy can strike when one least expects it.
Know Your Tax Obligations. One of the issues that beneficiaries may overlook until it is too late is the potential tax burden of an estate. While New York does have exemptions for estate tax – in 2025, no tax is owed unless an estate is valued at more than $7.16 million – a larger estate will be required to pay the state, and without a proper estate plan in place, this may come as a nasty surprise.
Update Your Plans Frequently. Whenever a person comes into or leaves your family, an update to your estate plan may be in order. A divorce or the birth of a child or grandchild can affect your choices for beneficiaries and/or proxies, or the distribution plan for any assets you leave behind.
Account For All Assets. Too many people neglect assets that are not immediately on hand, or those that are intangible, such as online assets (bank accounts, cryptocurrency, and similar instruments). Failure to account for these assets can see them essentially lost forever, particularly if no one else has the information required to access them.
Protect Your Own Well-Being. Many people plan their financial estate well, but neglect the documents that codify their wishes when it comes to their own care. For example, a common document contained in an estate plan is a healthcare proxy, which allows a person to nominate a ‘proxy’ to articulate their wishes in the event they become incapacitated. The state’s Health Care Proxy Law allows the purview of a healthcare proxy to be as wide or as limited as the Proxy wishes, but medical professionals must generally listen to what they have to say.
Contact A Pleasantville Estate Planning Attorney
Deciding to plan your estate can feel like an overwhelming endeavor, but you do not have to go through the process alone. A Pleasantville estate planning attorney from the firm of Meyer & Spencer, PC can help clarify your rights and responsibilities. Contact our office today at (914) 741-2288 to schedule a consultation.
Source:
tax.ny.gov/pit/estate/etidx.htm#bea
