Who Needs Estate Planning?

Contrary to popular belief, estate planning isn't just for the wealthy or those with extensive assets. It is a critical process for everyone. Here’s why you might need estate planning:

  • Property Owners: If you possess valuable personal property such as artwork, jewelry, or family heirlooms, estate planning ensures these assets are allocated according to your wishes.

  • Parents of Minor Children: Estate planning is crucial for parents to appoint guardians for their minor children and manage their care in your absence.

  • Individuals Concerned About Incapacity: If you're worried about future incapacity, whether physical or mental, estate planning allows you to designate someone to make decisions on your behalf.

Important Considerations for Estate Planning

Estate planning involves more than just listing assets and heirs. Here are some key questions to consider:

  • Distribution of Assets: Do you want specific assets to be transferred to particular individuals or organizations?

  • Child Custody: Who will care for your children if you are unable to, and who will manage their inheritance?

    • Note: The person responsible for raising your children may differ from the individual managing their assets.

  • Incapacity Planning: Who will handle your affairs and ensure your preferences are followed if you become incapacitated?

 

Estate Planning Frequently Asked Questions (FAQ)

  • What is a Beneficiary? A beneficiary is an individual or legal entity designated to receive your assets upon your death.

  • What is a Bequest? A bequest, also referred to as a devise, is a gift specified in a will or trust. It typically includes personal items like furniture or money, rather than real estate.

  • What is an Estate? An estate encompasses all the property and assets owned by a deceased person.

  • What is Probate? Probate is the judicial process of administering a deceased person's estate, which includes validating a will, settling debts, and distributing remaining assets to beneficiaries. It is advisable to consult with an attorney as probate can be prolonged if the estate is not properly planned.

  • What is an Executor? An executor is an individual appointed to manage and execute the terms of a deceased person's will.

  • What is a Guardian? A guardian is someone designated to take on parental responsibilities for minor children.

  • What is a Living Will? A living will, also known as an advance healthcare directive, specifies your wishes for medical treatment in the event you are unable to communicate your preferences.

  • What is a Grantor? A grantor is an individual who creates and funds a trust.

  • What is a Legacy? A legacy is a gift of a specific item or monetary sum left to a beneficiary, excluding real estate.

  • What is Issue? "Issue" refers to your direct descendants, such as children, grandchildren, and great-grandchildren.

  • What is Intestate? Intestate refers to dying without a valid will. In such cases, your assets will be distributed according to state intestacy laws.

Understanding Intestate Succession

If you die without a will, state intestacy laws will govern the distribution of your estate. Here’s what to know:

  • Distribution Priority: Intestacy laws generally prioritize distribution to the surviving spouse and children, followed by other close relatives like parents and siblings.

  • Escheatment: If no relatives are found, your assets may escheat, or revert, to the state.

  • State-Specific Regulations: Intestacy laws differ by state. For example, in New York State (NYS):

    • Estates under $30,000 without a will or trust are managed through survivorship.

    • Estates over $30,000 without a will or trust go through probate.

    • Distribution Examples:

      • Without a spouse but with children: Assets are divided equally among the children.

      • With a spouse but no children: Assets are allocated to the spouse.

      • With a spouse and children: The spouse receives $50,000 plus half of the remaining assets, with the balance divided among the children.

For comprehensive information on NYS intestate laws, visit the New York State Intestate Laws page or NOLO’s Intestate Succession in New York State.

For a printable copy of Connelly Law’s Estate Planning Essentials: A Legal Guide click here.

Effective estate planning is essential to ensure your assets are distributed according to your wishes and that your loved ones are well cared for. Consult with a legal expert to create a plan that meets your needs and complies with state laws.

Return to Areas of Practice 
Go to Contact