Why do you need an estate plan?

No matter the size of your estate, someone will one day need to manage your assets. They will need to sell your home, gain access to your accounts, pay your final bills, file your tax returns, and make distributions to your beneficiaries in accordance with your wishes. They may also need to decide where you live, manage your care, and make investment decisions for you during a period of incapacity prior to your death.

 

Certain assets may be inaccessible by anyone upon your death, even your spouse or child, until a court has granted authority to someone to collect them. If you become incapacitated, ALL of the assets held in your name alone, including those with beneficiary designations and TOD/POD designations, will be inaccessible, unless you have a valid Power of Attorney document in place or someone is awarded guardianship of your property by a surrogate’s court.

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Most people don’t know that in New York State, without a will that says otherwise, your spouse is only entitled to the first $50,000 of your estate and half of the remainder, while your descendants are entitled to the other half. This is not what most people want, and can cause problems, especially if your children are minors. If you do have minor children, you will want to name guardians to raise them as well as trustees to manage their inheritances for them until they reach the age of your choice.