New York residents may be aware that an irrevocable trust can often be used to pass down assets without paying federal estate tax. They might also be interested to learn that, despite its name, it may be possible to change certain aspects of an irrevocable trust during an individual's lifetime.
Many New York residents have life insurance policies in which family members have been designated as the beneficiaries. They should be aware that in some cases, it may be smart to instead establish a trust with the intended recipient named as the beneficiary to it, then naming the trust as the beneficiary of the life insurance policy.
Many people in New York forget about incompetency planning while preparing their estate plans. Incompetency planning is intended to cover what will happen if people become unable to handle their own financial affairs or make certain types of decisions for themselves.
New York residents should be aware that when they are working out a plan for retirement, estate planning is an important part that should not be overlooked. While thoughts of retirement tend to center around financial considerations, such as whether an individual can afford to retire or whether to keep the house or downsize, estate planning is part of that process.
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.
Changes to tax exemptions have shifted the way estate planning has been viewed in the past, and the federal estate and gift tax exemptions have increased. New York residents should keep these considerations in mind when getting their accounts in order.
Individuals in New York who are considering estate planning strategies may be surprised to hear that social media accounts should also be included in documentation. Furthermore, it may be beneficial for any account that a person regularly accesses to be included in their estate plan. The related passwords and account information should also be provided. Otherwise, loved ones may not be able to access important information, such as bank account details or credit card statements.
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.
People who are planning how to handle their estates and assets may find that setting up a trust may provide several important advantages to them, depending on the complexity of their estates and the goals that they have. Trusts may present an important tool that people can use in order to accomplish several different things.