You may have heard that you need to create an estate plan but have no idea where to start. There are several estate planning tools to choose from, but many New York estate plans contain the following documents.
Wills
A will is often considered the most important estate planning document. A will can be used for many purposes, including:
- Distributing assets to your beneficiaries after you pass away.
- Appointing an executor of your estate to manage your affairs after you pass away.
- Appointing a guardian for your minor children if you were to pass away.
Trusts
Trusts are a way for you as a grantor to transfer property into an account to be managed by a trustee. Trusts often allow for the avoidance of the probate process and provide additional protection for your assets. There are several types of trusts for you to choose from based on your specific needs. For example, you may choose a living, revocable trust if you want the option to make changes to the trust during your lifetime or terminate the trust altogether.
Powers of attorney
A power of attorney is used to appoint an agent, or a third party to make financial decisions on your behalf if you are incapacitated, or unable to make decisions for yourself. Your agent should be someone you trust to carry out your wishes, as they may have the authority to buy and sell property on your behalf or handle your investments.
Health care proxies
If you incapacitated and are unable to make decisions for yourself, you may choose a trusted third party third party to make medical decisions on your behalf. The person you choose, known as a health care proxy can make decisions regarding your care and treatment based on your wishes.
If you are beginning the estate planning process, you should consider all your options before choosing which documents to include in your plan.