Answers To Frequently Asked Questions About Estate Planning In New York

What are the differences between revocable and irrevocable trusts in New York?

The primary differences between these two types of trusts have to do with flexibility and control. If you create a revocable trust and name yourself as the trustee, you can choose to alter or revoke the trust at any time prior to death or incapacity. A revocable trust allows you to maintain control over the assets and make changes as your circumstances or preferences change. However, the assets in a revocable trust are still legally part of your estate. Therefore, they may not be shielded from creditors and they won’t lower the overall value of the estate for tax purposes.

By contrast, when you transfer assets into an irrevocable trust, you essentially remove them from your personal ownership, which can offer creditor protection and reduce the taxable estate. The tradeoff, however, is less control. An irrevocable trust cannot be easily changed or terminated once it has been established. This type of trust is often used for specific purposes, such as Medicaid planning or protecting assets for beneficiaries.

Is an estate planning attorney really necessary?

While you can find resources and templates online, an estate planning attorney is invaluable for ensuring that your estate plan is comprehensive and legally sound. Estate planning involves complex laws and regulations, and an attorney can help tailor your plan to fit your unique situation and goals. They can also help you avoid common pitfalls and ensure that your documents are properly executed and aligned with your wishes.

Your estate plan will speak for you when you are no longer around to speak for yourself. It must be clear, thorough and carefully constructed. Otherwise, the costs of fixing potential problems could easily outweigh the savings of taking a do-it-yourself approach to estate planning.

What type of documents should I have in my estate plan?

A complete estate plan typically includes several key documents:

• A will provides instructions on how your assets will be distributed after your death. It also allows you to name guardians for minor children.
• By designating durable power of attorney, you can choose a trusted individual to manage your finances and other important matters if you become unable to make or communicate these decisions for yourself.
• A living will and designated health care proxy provide guidance on medical decisions and end-of-life care.
• One or more trusts can also be included to manage assets and potentially reduce taxes.

Your plan can and should be customized to your needs and goals. It’s also important to review and update these documents regularly to reflect any changes in your life or wishes.

What do I need to know about funeral planning?

Funeral planning is an important part of the estate planning process. You can specify your preferences for burial or cremation, the type of service you want, and any other specific requests you may have. It’s helpful to communicate these wishes to your family and document them in your estate plan to ensure they are honored.

Additionally, prepaying for funeral expenses or setting aside funds can relieve your loved ones of financial burdens during a difficult time.

What should I bring to my estate planning meeting?

When meeting with your estate planning attorney, please bring all relevant information to ensure a productive session. This includes a list of your assets and liabilities, copies of any existing estate planning documents, and details about your beneficiaries and any specific wishes you have for them.

It’s also helpful to have contact information for your chosen executor, trustees and health care proxies. Being prepared with this information allows your attorney to provide the best advice and create a plan that meets your needs.

Get Answers To Your Estate Planning Questions – Contact Us Today

Enea, Scanlan & Sirignano, LLP, serves clients in Westchester County and surrounding areas of New from offices in White Plains and Somers. To discuss your estate planning needs with an experienced attorney, call us at 914-269-2367 or reach out online.