No matter what age you are, estate planning should be a crucial part of your future preparations. You never know what life might throw your way and legal protections may be your family’s lifeline. If you are a primary breadwinner, your loved ones may be more vulnerable to financial risk.
What happens if you suddenly pass away in your NY home? Without proper estate management, your family may face a tedious court probate or administration procedure and disputes over inheritance. New homeowners in Westchester should be diligent in maintaining their assets.
Have you done these 4 crucial estate planning steps?
Update or create your will
If you have recently acquired a major property, do not forget to update your records. A last will and testament names your heirs and dictates the distribution of your assets. Without one, a court must follow intestate succession laws to determine how heirs receive their share.
If you have recently bought or inherited a house, do not forget to include it in your will. A new home is a significant part of your estate. Major assets should be a priority when creating or updating a will. Waiting any longer can make the asset distribution process complicated.
Evaluate how you title your property
Property titling can directly influence your estate management plans. Asset titles fall under general broad categories and may affect who receives a property after your passing. For example, you may freely designate heirs for assets titled under your name alone. Assets titled under JTWROS (Joint Tenancy with Right of Survivorship) will pass automatically to the surviving co-owner and avoid probate.
When arranging documents for major assets such as your new home, make sure that they are titled properly. Evaluate the pros and cons of titling your assets under your name, holding them jointly or holding them in a revocable living trust.
Establish a financial power of attorney
A financial POA allows you to entrust an agent to manage your finances if you become incapacitated. Think of it as a will, but for a living person. Your appointed agent can make financial decisions on your behalf if you are unable to work or speak for yourself.
Without a financial power of attorney, your loved ones could face costly court battles to access your accounts. For important financial assets like bank accounts and records, the legal process can take a lot of time! A POA can help you appoint trusted people to settle taxes, mortgages, insurance claims and more.
Designate healthcare proxies
Just like a POA, a healthcare proxy gives you power to appoint an agent to help you while incapacitated. This time, they are specifically empowered to make medical decisions on your behalf. They shape your emergency healthcare choices and plans to aid you in your recovery.
These designated medical agents can ensure your healthcare wishes are honored by getting involved in end-of-life plans. These are the people who can help you shape your decisions while you are vulnerable. By taking this step, you protect your family from having to make agonizing medical choices in a crisis. Choose your legal representative wisely so your family is protected in uncertain times.