Estate Planning 101: Every New Yorker needs a Plan

Welcome to Estate Planning 101!

Estate planning can be complex, so we wanted to cover some of the basics to help you on your way to having peace of mind! While our checklist certainly doesn't replace a conversation with an estate planning attorney, we hope that this will help guide you in some of the best steps to get started, and to help get you thinking about some of the important components of what makes up an effective and comprehensive estate plan in the general sense. These are general principles, but as we practice law in the Western New York area (GO BILLS!), our focus is for those specifically who are also in the Empire State! Whether you have significant assets or a fairly modest estate, estate planning is essential for everyone.

While you're probably here because you are aware of the benefits of estate planning, there can be even more to learn about! It’s an ongoing learning process because life is ever evolving, laws are changing and people and circumstances are changing.  Estate planning encompasses many changing factors through the years.  From minimizing income, capital gains and estate taxes, to protecting assets,  and avoiding probate, and to even protecting your loved ones from potential financial burdens, the benefits are always significant and the risk you undertake by not doing excellent estate planning is also quite significant. From creating a will and establishing lifetime trusts to designating beneficiaries and making health care directives, this guide will provide you with the knowledge and tools to navigate the complex world of estate planning. Ultimately, our goal at RUTH P. GEORGE LAW PLLC is to empower you with the information you need to make informed decisions and safeguard yourself, your loved ones and your assets! Future generations will notice your powerful example of estate planning done right!

Why is Estate Planning so important?

Estate planning is a critical aspect of financial and personal management that often gets overlooked or postponed... often until it's too late. From our perspective and what we see happen during life and in probate, we strongly urge you to consider at least doing the basics to clarify matters for your loved ones! At its core, a comprehensive estate plan ensures that you and your loved ones are taken care of and that your property is properly managed and handled, with your wishes followed during life and at your death.

One of the primary reasons why estate planning is so crucial is to avoid the costly and time-consuming process of guardianship proceedings during life and a difficult probate at your passing. Guardianships for adults can occur when there is a lack in legal authority for appropriate people to help you when are unable to make decisions and handle matters on your own.  It can also occur when there are disputes between the agents named in legal documents and/or family members.  It’s a very costly and burdensome proceeding to go through and can cause incredible stress and difficulties on loved ones.  

Probate is the legal process of distributing a deceased person's assets according to either a will or New York State laws, which can be lengthy, complex, and expensive (even if it goes smoothly!) Factor in a dispute or two by a family member, and this process could take years. 

By having a well-crafted estate plan, you can provide clear instructions for who you want in charge to legally handle your health care matters and financial matters during life as well as what you desire with your assets upon your passing! 

What are the Key Components of a Great Estate Plan?

A comprehensive estate plan typically includes several key components, each serving a specific purpose in protecting your assets and ensuring your wishes are carried out. Understanding these elements is crucial for developing a robust and effective plan, and often it can be challenging to figure out which components would be best for your situation without talking to an estate planning attorney.

One of the most fundamental components of an estate plan is a last will and testament. This legal document outlines your wishes for the distribution of your assets, the appointment of guardians for any minor children, and the designation of an executor to oversee the administration of your estate. A well-crafted will can provide clarity and minimize the potential for family conflicts or disputes. Ultimately, the creation of a will can take some time and thought. Who do you want to take care of your kids? Do you have a blended family that needs to be factored in? Are you a single parent? What if both parents pass away? Who do you want to receive your house, or do you just want it sold and the proceeds distributed evenly among family members? These are the tough kinds of questions that need to be asked as you thoughtfully craft your will.

Another essential element of an estate plan is the establishment of trusts. Trusts are legal entities that allow you to transfer ownership of your assets to a trustee, who then manages and distributes those assets according to your specified instructions. Trusts can be used for a variety of purposes, such as avoiding probate, minimizing taxes, and providing for the care of a loved one with special needs.

In addition to a will and trusts, an estate plan should also include the designation of beneficiaries for your retirement accounts, life insurance policies, healthcare decisions, and other financial assets. This ensures that these assets are distributed according to your wishes and that your final healthcare-related decisions are carried out according to your preferences.

Getting Started: Your Checklist

If you haven't checked it out already, make sure you take a look at our Complete Estate Planning Guide in the Resources section of our website - This will help get you thinking about the right things, and help you in starting to collect the information you need to start your estate planning journey. Embarking on the estate planning journey can seem daunting, but by breaking it down into manageable steps, you can ensure that your plan is comprehensive and tailored to your unique needs.

Here are the 5 first steps we suggest:

1. Gather all financial and personal information: An estate planning attorney can help you determine what might be relevant and what might be a little less so, depending on your unique situation. This includes details about your assets, liabilities, bank accounts, real estate, investments, and any existing estate planning documents.
2. Identify your top estate planning goals: What are you hoping to achieve? Are you hoping just to minimize taxes? Are you trying to ensure that a specific person receives a specific piece of real estate? Do you want to purposefully leave someone out of your will? Do you want to plan for guardianship for your kids.
3. Choose the appropriate estate planning tools: Determine which legal instruments, such as a will, trust, or power of attorney, would best serve your goals and needs. Your estate plan very well could include all of these tools!
4. Consult with an experienced estate planning attorney: Working closely with a qualified professional can help you navigate the complexities of estate planning and ensure that your plan is legally valid and up-to-date. There may be laws or requirements that you don't even know about that could affect your situation.. But just because you don't know about them, doesn't mean that they don't apply to you. If for any reason your documents don't meet legal requirements, they can be found to be invalid and disregarded during probate, making working with an estate planning attorney a critical step in this process.
5. Review and update your plan regularly: As your life and circumstances change, it's essential to review and update your estate plan to ensure that it continues to reflect your wishes and address any new considerations. Make sure that you're checking in with your attorney at least yearly, or particularly when you have changes in your life, such as a new baby or new home, that may affect the estate plan that you currently have. The more proactive you can be, the better!

Why Work with an Estate Planning Attorney?

There is so much more to what happens after you die than taking a hand written letter out of your sock drawer that has a few simple directives on it and handing it over to attorney who *poof!* magically makes everything you have written down come true!

Working with an estate planning attorney to create your estate plan is critical. When choosing an estate planning attorney, it's important to look for someone who specializes in this area of the law. Just like you wouldn't go to a foot doctor for your skin problem, you don't want to go talk to a criminal justice attorney about your estate planning needs! Estate planning is a constantly evolving field with new tools being developed and new laws coming into play. An attorney who specializes in estate planning will also be very well-versed in tax laws and regulations, as these can significantly impact your estate planning strategies and what recommendations they give to you.

While it may seem like common sense, perhaps the most important part of identifying an estate planning attorney that you want to work with is to find someone who you feel comfortable talking to and can communicate openly with. Estate planning involves sensitive personal and financial information, and you'll want to work with someone you trust to handle these matters discretely. Look for an attorney who is willing to take the time to understand your needs, answer your questions, and explain the process in a clear and accessible manner.

When evaluating potential estate planning attorneys, consider factors such as their years of experience, client reviews, and professional affiliations. It's also a good idea to ask for referrals from trusted sources, such as your financial advisor or other professionals in your network - Often they work on a professional level with estate planning (and other types of) attorneys, and can make personalized recommendations based on the experience they have had working with a mutual client.

We will be digging into more News posts regarding estate planning for blended families, minimizing estate taxes, common mistakes made in the estate planning process and much more very soon! Until then, stay tuned!

Questions about estate planning or what strategies might be best for your specific life situation? Give us a call or stop by our office in Williamsville, NY to set up an appointment.