The biggest estate planning mistake you can make is not having one. If you die without a will, your estate will go through probate, creating unnecessary legal and financial issues for your family. However, by creating an estate plan, you can ensure that your loved ones, your estate planning beneficiaries, are cared for after your death. Here are the major benefits of estate planning to help you move forward.
What are the Benefits of Estate Planning in New York
Avoiding probate
Your estate will be subject to the lengthy and public probate process if you die without a will. Your family will bear the legal costs, reducing the amount they ultimately will receive. Since you left no instructions, even with a simple will, the court will determine who those beneficiaries will be.
Caring for minor children
If you have dependent children, you will want to plan for their care if you and your spouse should die. Estate planning for new parents is especially important for younger couples or couples with younger children.
We’re often asked, “Can I buy a house and put it in my child’s name?” as a way to get around legalities. The short answer for this is, no.
Minimizing taxes
Smart planning will minimize the New York estate tax issues your beneficiaries could face after your death. For example, your heirs can make tax-free withdrawals from a Roth IRA, whereas they would have to pay income tax on the proceeds of a traditional IRA.
Planning for pet care
Fido and Fluffy are like family members; you can provide for their care in your estate plan. You can even set up a pet trust to name a custodian and to help with the care and feeding of the pets.
Distributing assets
You can use your estate plan to tailor inheritances. You can make provisions for a loved one with special needs or for someone not yet mature enough to handle a lump-sum inheritance. Exploring and understanding the available estate planning tools will enable you to create the perfect plan for your specific situation.
Albany Estate Planning Attorneys Can Help You Realize the Major Benefits of Estate Planning
Our Albany estate planning attorneys can help you understand the benefits of estate planning and help you construct yours today.
