New York residents may be able to use a domestic asset protection trust as part of their estate plan. One of the most common reasons such a trust is used is to protect assets from creditors. However, state law may allow for the transfer of assets to such a trust to be voided. In many cases, this applies to existing creditors whether they are known or not.
Estate planning can be used by people in New York to protect their assets for future generations. However, there are some common estate planning mistakes they should take care to avoid.
When many New York residents think about bequeathing their estate to their family members, they may be mostly thinking about the assets that they spent a lifetime working towards. However, many residents also wish to leave behind their knowledge. While this can be difficult, some may have the ability to do through certain assets, such as a company or a work of art. In order for these types of assets to continue to live past death, people should consider legacy planning.
New York residents may have heard the term legacy planning used interchangeably with estate planning. While similar, a legacy plan is more about taking steps to craft a reputation as opposed to merely transferring assets. It is generally seen as being proactive about establishing an estate plan as opposed to being reactive. One misconception about legacy planning is that it is egotistical to create one.
Some New Yorkers write their estate plans and then forget about them. When people fail to review and change their estate plans when they experience major life changes, there may be some unintended consequences.
People in New York who don't have substantial assets may not think they need an estate plan. However, regardless of one's financial standing, having a will is important.
According to a survey by Natixis, almost 70 percent of Millennials and other young people have an expectation that their parents will leave them an inheritance, but just 40 percent of parents plan to leave anything to their kids. Part of the disparity may stem from a simple lack of conversation and planning. Tennessee parents and their children may both approach the topic timorously, as it revolves around death. For all parties involved, though, it is important to have these discussions earlier rather than later.
In New York, estate planning ensures that people's wishes are met concerning their health care and assets at the end of their life. Documented instructions let relatives and health professionals know individuals' wishes regarding medical treatment and end-of-life instructions. An estate plan also answers questions about property disbursement after a person's death. However, there are several issues that people often do not think about before preparing their estate plan.
Individuals living in New York are often concerned about protecting themselves in case they become incapacitated and are unable to make decisions regarding finances, medical care and living arrangements. One way of ensuring that one's rights and needs will be respected is to give a trusted friend or family member durable power of attorney.
In some cases, New York residents fail to include their desires when it comes to final arrangements in their estate plans. In some of these cases, they trust their family members and loved ones to do the right thing. However, if a person is concerned that his or her family will not know what to do or the person has what may be considered an unusual request, those wishes need to be outlined in the estate plan.