In New York, estate owners mitigate common risks associated with probate proceedings. During the proceedings, the court addresses any liens or claims issued by creditors for outstanding balances. If the debts are valid, the creditors could seize a portion of the assets to pay off the full balance of the account. Estate planning attorneys help estate owners address these probabilities through a careful and strategic plan.
Creating a Will
In the estate owner’s will, he or she identifies which parties receive their properties and assets. All provisions linked to the assignments are explained in full detail. For example, any minor that receives a large portion of an estate needs additional provisions. The provisions identify a guardian for the child, as well as, a trustee to oversee how the minor’s assets are managed. The provisions prevent any unlawful use of the assets by the new guardian.
An Irrevocable Trust
In estate planning, the key to lowering the duration of the probate proceedings is to reduce the total value of the estate. An irrevocable trust is a beneficial option for transferring high-valued assets out of the estate quickly. Once the assets are transferred into the trust they aren’t a part of the estate and on paper, the assets are owned by the trust.
The estate owner transfers any assets into the trust and maintains full control over the assets until he or she dies. The documentation for the trust identifies a successor who takes over once the owner dies. The successor is often the owner’s spouse or child. The successor won’t face any inheritance taxes when they take over the trust. None of the assets within the trust are reviewed during the probate proceedings.
Creating Trust Funds
The owner transfers any balance of their wealth into trust funds. The new owners of the trust funds are identified when the accounts are established. Provisions apply to these accounts, too. Typically, the beneficiary receives the trust fund once they reach a predetermined age. The estate owner contributes to the trust funds throughout their entire life if they prefer. All funds transferred to the trust fund are separate from the estate.
Using Life Insurance for Debts
The estate owner contributes to a whole life insurance policy throughout his or her life. In the estate plan, he or she sets up provisions to manage creditors with proceeds from the life insurance policy. The owner uses their will to direct the executor to pay off any outstanding debts according to the plan they set up. Any additional benefits left over from the life insurance policy is distributed as directed in the estate plan.
Health Care Directives
Estate owners create a health care directive that includes a living will and a power of attorney. The living will describes what extraordinary measures are allowed if the individual is facing a serious healthcare crisis. Resuscitation and life support are among the measures that are used. The estate owner determines if they want any of these measures and for how long life support is acceptable.
A healthcare proxy receives a power of attorney to make decisions for the individual if he or she becomes incapacitated. The power of attorney grants the proxy the rights to manage the estate owner’s assets and expenses, too.
In New York, estate owners who need to protect their assets turn to estate planning attorneys. The attorneys present a full estate plan to achieve asset protection for all properties and wealth. The plan presents opportunities to transfer their wealth and assets out of the estate and determine which party receives their assets. Estate owners who need help contact Raiser and Kenniff for an appointment right now.