Creating a last will and estate plan doesn't just mean deciding who gets what from your acquired assets. Instead, the point of the process is to create comprehensive documents that guide your attorney, your heirs, your executor and your loved ones in the event of an extreme medical event or your death.
If you are the adult child of elderly parents, you may be concerned about their retirement benefits getting eaten up by health care costs. A major health crisis can wipe out a couple's life savings and leave their finances in ruin.
If you have grandparents or parents in their golden years, you are likely acutely aware of the importance of having a will or estate plan in place. Chances are good that your loved one has already taken the time to arrange for the disposition of their assets after they pass on.
Pets are not people, so you can't leave them an inheritance in the traditional sense, but you could certainly make preparations for your cat or dog -- or any other kind of animal -- in your estate planning. One way that New York residents do this is through the creation of a pet trust.
You love your romantic partner dearly, but you also know that marriages can end in divorce. As such, you're concerned that your child could have his or her inheritance compromised if you and your spouse part ways in the future.
As you get older, the idea of having a nest egg of money is more and more appealing. You don't want to run out in early retirement, and you always want to have a little stash of cash for expected expenses and rainy days.
The decision to place your money and assets into an irrevocable trust is a serious one. That's because you will not be able to modify, change or revoke your irrevocable trust after you have created and funded it.
Living wills are important documents that you should understand thoroughly. These documents, also known as a directive to physicians or health care directives, contain your wishes for what you'd like to see happen if you're injured and unable to express your opinions and preferences for medical care. This directive generally works when you're incapacitated, like in the case that you've fallen unconscious or are in an induced coma.
An irrevocable life insurance trust (ILIT) is a special trust designed to counteract a lot of problems that can arise relating to life insurance. One of those problems relates to a large life insurance policy that triggers unplanned estate tax consequences. Another problem relates to the large quantity of cash that a life insurance payout could involve.
You might think that only wealthy people need to create an estate plan, but that thought can end up harming you and your family in the long run. Every adult, regardless of age or social status, should have an estate plan in place.