In March, many New York college basketball fans were excited to hear about a revocable living trust in which provisions were made for 180 former players. The trust's grantor was a former coach at the University of North Carolina at Chapel Hill, and his action was reportedly a private salute to the many players he had interacted with over the years. Following his death, several of the players shared the event in various public Internet forums.
The power of attorney is a foundational legal document for any New York citizen who wishes to obtain a thorough end-of-life strategy. The power of attorney is an essential part of any plan that deals with the possibility of incapacity or death, but it also a useful tool for anyone who wishes to carry out a business transaction through an agent.
Individuals in New York who are estate planning should keep in mind that there are still a number of potential errors they must avoid. One of these is failing to update the estate plan regularly in response to a change in tax law or to life changes like births, deaths or changes in marital status.
New York residents who are thinking about setting up or updating an existing estate plan may be interested in the types of trusts available. These trusts, if created correctly, can help to minimize the tax burden on the estate and its beneficiaries.
The laws of New York allow a person to delegate his or her legal authority to make certain decisions by executing a power of attorney. The person who executes the document is called the principal and the person to whom authority is delegated is referred to as the attorney-in-fact or agent. A power of attorney may be created to cover only a limited time period and a specific activity or it may be drafted to cover an indefinite amount of time or a broad area of decision-making.
New York residents who are in their 30s may benefit from will planning in regard to their financial future. Such an estate plan can include the distribution of assets such as personal property, life insurance and annuities. Residents of the state may wish to consider a few key suggestions before moving forward with such a process.
If a New York couple has a taxable estate that may exceed the amount of the exemption, one tool that they may use is a bypass trust. This estate planning tool helps to eliminate estate taxes for the first spouse who dies while also reducing the amount of estate taxes of the surviving spouse's estate.
Many people in New York carefully plan their finances for the future including the inheritance allocation. However, numerous people find the subject of discussing inheritance uncomfortable and difficult to approach. Elderly parents may avoid the conversation because discussing a death can be uncomfortable, and other family members might not want to appear greedy and insensitive. In many cases, many families do not discuss the issue.
There may be confusion for New York residents who view a will and a revocable trust as being the same. While the purposes are similar, the decision to use one or another of these estate planning tools can affect the time and privacy involved in settling an estate after one's death. In both cases, an individual may determine how assets will be distributed. However, estate administration is very different for trusts and wills. Whereas a will goes through the probate process, an effort which can often take months to complete, a trust may allow the probate process to be avoided.
New York residents who own a residence or a vacation home may be interested in an estate planning method that could reduce the tax burden for those who inherit that property. Using a certain type of trust, the total value of the taxable estate can be diminished.