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.
Individuals in New York who are estate planning may wonder about best practices that will ensure asset distribution goes smoothly for their heirs. There are a number of steps they can take while they are still alive to make this process less difficult for their loved ones. Communication is key. Discussing estate planning with family members can help to prevent unpleasant surprises. It is not necessary to go over every detail of one's finances, but giving heirs a sense of what they can expect is important.
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.
Before deciding who gets what portion of an estate, one should consider any factors that may affect the amount of money or assets available when planning the future of their finances. This includes any debt, final income tax payments and funeral and estate expenses. In many cases, the estate administrator may need to sell some assets to cover these claims against the 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.
New York residents who are looking to update an estate plan may be interested in how one deceased Hollywood star handled it. Through the use of one type of trust, the actor was able to sidestep the very public probate process.
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.
A contributor to a recent financial planning article asks readers to consider what their state of mind would be in the event that every personal Internet file they had created suddenly disappeared.