Articles Posted in Estate Planning

Estate planning should be tailored to fit your unique situation. Each person has their own list of objectives that they must achieve. The issues that unmarried people must address are different from those that need to be tackled by married couples. This article reviews some of the common issues that arise when unmarried couples engage in estate planning. 

Taking Domestic Partners Into Consideration

Married couples are bestowed under the law with certain rights and obligations that unmarried individuals simply do not have. State laws for married individuals involving property division do not extend to people who are in relationships but not married. Laws are not the same for unmarried individuals in case of a break-up or death. With adequate estate planning, unmarried people can create estate planning documents to make sure that their wishes are carried out when it comes to things like estate planning. 

Many people fall into the trap of thinking that wills are only for the wealthiest individuals. Other people falsely believe that because they are young, there is little to no reason to write a will. In reality, life is overwhelming and unpredictable. As easy as it is to assume that estate plans are for other people, it’s also important to understand that death will occur regardless of whether or not one would like to avoid it. If you fail to create an estate plan, there will be no designated individuals to receive your assets after you pass away. In these situations, New York law will dictate how your assets are divided as well as where your assets are transferred.

To make matters even more complex, only one in every three people in the United States is reported to have a will. This equates to only half of the people over the age of 55 having an estate plan. Any person, however, can benefit from having a will even if this makes things easier for survivors who have recently lost a loved one. It’s also important to remember that wills need not be complicated and that a person can write one without having to spend a substantial amount of money. This article reviews some important details to consider if you’re considering creating a will. 

Consider Your Goals

Family wealth has led to disputes over the years. Today, Hollywood also continues to make films like Knives Out that address what happens when families cannot agree on how an estate should be divided. Given that the Covi-19 pandemic has placed an increased amount of financial pressure on families, a growing number of people are disputing the terms of wills and other estate plans. Additionally, the number of blended families has grown substantially. Data reveals that currently, 16% of children live in “blended families”.  Blended families mean that personal finances are much more nuanced than they once were. 

Selecting who will inherit your assets and how much they will receive can be difficult even among the simplest family arrangements. When step-children or other aspects of blended families are involved, the chances for disputes rise greatly. 

Writing a Will that Decreases the Risk of Estate Planning Disputes

For many years, life insurance played a critical role in estate planning to either pay off or avoid estate taxes. Due to the raising of exemptions to a sizable degree including both on a federal and New York state level, people now utilize life insurance to achieve various goals. This article reviews some of the ways that you can achieve estate planning goals through the use of life insurance.

Income Taxes

Following the recent passage of the Secure Act, some new techniques have been introduced involving income taxes. The Act requires beneficiaries who inherit IRAs to make withdrawals from these accounts over the following decade. The creation of this 10-year duration lowered what was once expected to be the rest of the withdrawer’s life.

As the covid-19 pandemic continues throughout the country, many experts are gaining a better understanding that the pandemic left on older individuals, who are the demographic hit most devastatingly by Covid-19. New studies have provided some helpful insights. For example, data shows that older individuals residing in their own residences have faced an increased risk of passing away from covid-19, more than was previously understood. While nursing home fatalities received significant attention, a much larger number of adults passed away from covid while living outside of nursing homes.  

This new research tackles some important questions including what conditions place seniors at an elevated risk of passing away due to the coronavirus, the number of older individuals who might have died without the pandemic, and the number of “excess” deaths that are connected to the covid-19 pandemic. It’s already understood that older individuals were disproportionately impacted. New details about the vulnerabilities of the elderly, however, are illuminating while the number of covid cases increases again and unvaccinated people are still at an increased risk of covid-19. 

Details about the Study

A variety of myths linger about estate planning. One of the most enduring of these myths is that estate planning is only for the wealthy. In reality, however, estate plans perform countless functions and all adults need them. Estate planning is not simply something that a person needs when they pass away to manage their property. Estate planning does this important task but also performs other valuable functions like planning for your potential incapacity. As people age, the chances that they will need help from someone else later on in life rise substantially. Furthermore, mishaps and tragic illnesses can also occur despite a person’s age. This article reviews some critical reasons why most people, regardless of age, need some type of estate plan.

Healthcare Decisions

All adults can benefit from creating a healthcare directive that addresses who will make healthcare decisions for the individual if they are incapacitated or otherwise not able to do so. A healthcare directive establishes a person’s choices regarding, and other issues like pain medication, organ donation, and other issues that must be decided if a person is incapacitated and cannot care for himself or herself. The person who is appointed as a healthcare agent will also be tasked with making difficult end-of-life decisions involving cremation and burial.