Making the best plan and the best will takes knowledge and expert advice. For example, do you know that property held jointly with another may not be distributed by will?
Life insurance may or may not be distributed by will depending on who is named as a beneficiary? Or that the same can be said of individual retirement accounts, pension plans and other assets? Or that a spouse has a right to a car and certain other items, as well as to a large share of your property no matter what your will may direct? The best estate plan recognizes that your will is only part of your total plan for the distribution of your property. To create the best will and estate plan for you, make an appointment with your attorney to discuss preparing your will as well as your overall estate planning wishes.
Before you make a will, you should also know how estate and income taxes affect you and your assets. The federal and New York tax laws change often as a result of various tax reform acts. So you may not be up-to-date with these complex and frequently changing laws. Also, you may be unaware that you can choose which
Many people think that a will is only for people who want to set up trusts or save on estate taxes. Those may indeed be important benefits for some people. The primary reasons for making a will, however, are: (1) to leave your property to those about whom you care in the manner and proportions you choose; (2) to choose the person(s) you want to handle your estate; (3) so that the estate will not have to incur the cost of an administration bond to insure the faithful performance of the person chosen by the Court to administer the estate; and (4) to have any estate taxes which may be due on your estate allocated among your beneficiaries according to your wishes, not by statutory rules.
If you die without a will, the Court will appoint an administrator, who may be a family member or a public official, to distribute your assets among your family members in a manner fixed by law. These rules, known as the “Distribution Rules of Intestacy,” reflect what the New York State Legislature decided would likely be preferable in most situations. For example, if you are survived by:
Here’s something else to consider: If any of your children are under 18 years of age at your death, a court-appointed guardian will be required to manage your minor child’s share of your assets. Although the court probably would appoint your spouse as guardian of the property for your minor children, this is not guaranteed. Also, the guardian may have to post a bond. Payment of the bond premiums will cost money. Moreover, if any portion of your assets is needed to pay for your child’s education, clothing or living costs, prior approval of the court is necessary. The court also requires guardians to file annual accountings of income and expenses. In addition, the range of investments available for the funds held by the guardian may be limited. Thus, if the guardianship lasts for any length of time, the child’s funds may not grow at an acceptable pace. These problems can be avoided with a properly drafted will.
If you and your spouse die at or about the same time, it is important that you make
a provision not only for a guardian of the property of any child under age 18, but also and perhaps more importantly that you name
a guardian of the person for each minor child.
A guardian of the person is given custody of the child during minority. While the designation in your will is subject to the review and confirmation by the court, the court will usually give deference to your wishes. Thus, with a properly drafted will you can provide guidance to the court on whom you desire to be the guardian of your minor children.
You name as the legal representative(s) (“Executor(s)”) of your estate whom you want to administer and distribute your property. An Executor can be a relative, a friend, your lawyer or a bank or trust company that specializes
in the handling of estates.
The choice of an Executor is yours only if you make a will. You realize the value of having qualified people help with your affairs during life. Such people are just as valuable after you die.
How do you go about making a will? Can you pick up some printed forms and fill them out in your own handwriting? Perhaps you’re interested in buying a book that tells you how to write your own will. Can you download a form will from the Internet? These options are all available, but you very well might create a will that is not the best will for your personal plan. You might miss an essential element of a comprehensive estate plan or any number
Making the best plan and the best will takes knowledge and expert advice. For example, do you know that property held jointly with another may not be distributed by will?
Or that life insurance may or may not be distributed by will depending on who is named as a beneficiary? Or that the same
can be said of individual retirement accounts, pension plans and other assets? Or that a spouse has a right to a car and certain other items, as well as to a large share of your property no matter what your will may direct? The best estate plan recognizes that your will is only part of your total plan for the distribution of your property. To create the best will and estate plan for you, make an appointment with your attorney to discuss preparing your will as well as your overall estate planning wishes.
Before you make a will, you should also know how estate and income taxes affect you and your assets. The federal and New York tax laws change often as a result of various tax reform acts.
