Brooklyn Estate Planning Lawyer
Careful decisions about your wealth today can protect your family tomorrow
Estate planning lets you control what happens to your property late in life, during any incapacity and after your death. Whether you are a young family or individual just starting out, an elderly individual or couple or anyone in between, you can gain peace of mind by working with an attorney who can help you plan and articulate your goals. At the Law Offices of Peter G. Gray, P.C., we create personalized estate plans for clients throughout Brooklyn, N.Y. Our attorney has more than 25 years of experience helping people plan their estates while avoiding errors that could create uncertainty, expense or conflict.
What is the purpose of estate planning?
Estate planning is not limited to deciding who receives your property after your death. A comprehensive plan can manage your wealth during your lifetime and allow you to give authority to trusted decision-makers in the event you become incapacitated. Without an estate plan, New York law and the courts may make many of those decisions for you.
Your plan should reflect your assets, relationships, health concerns and long-term goals. It should also be reviewed periodically because changes in your family, finances or New York law may affect whether existing documents still accomplish what you intended.
What documents can be included in an estate plan?
Depending on your circumstances, including your types of assets and the needs of your family, your estate plan may include the following:
- A last will and testament, which can direct the distribution of assets
- One or more trusts, which can hold and distribute property for set purposes
- A power of attorney authorizing financial decision making
- A health care proxy appointing a medical decision maker
- A living will explaining your treatment preferences in the event you fall into a persistent vegetative state or irreversible coma with no meaningful chance of recovery
- Beneficiary designations for retirement accounts and insurance
- Guardianship provisions for minor children
These documents must be coordinated so that they do not conflict. An outdated beneficiary designation, for example, may override instructions in a will and cause an asset to pass to someone you no longer intended to benefit.
What is the difference between a will and a trust?
A will is a document that takes effect at death and directs how property in your individual name should be distributed. It can also nominate an executor and identify a preferred guardian for your minor children. A will must be admitted to probate before the executor receives authority to act.
A trust holds assets under terms that are set forth in a trust document you create. Depending on its structure, a trust may provide for your lifetime management of property and designate a trustee to distribute the property upon your death, all without court involvement.
When should you start estate planning?
Estate planning should begin as early as possible, but you should particularly consider creating or updating a plan after such events as:
- Marriage, divorce or the death of a spouse
- The birth or adoption of a child
- Buying a home or business
- Receiving an inheritance
- A significant change in health or finances
- Becoming responsible for a person with disabilities
Planning can also protect beneficiaries who are minors, have special needs, struggle with money management or face creditor concerns.
How do probate costs and estate taxes factor into estate planning?
Probate costs can significantly diminish the overall value of an estate, reducing the amount of property for beneficiaries. Larger estates may be subject to federal and New York estate taxes if they exceed applicable exclusion thresholds. New York’s tax is especially harsh, because if the estate’s value exceeds the maximum exclusion amount by even 5 percent, the entire estate is taxed. Effective planning focuses on reducing these costs in order to preserve the most value possible for beneficiaries.
What about Medicaid and long-term-care planning?
Long-term nursing care can place substantial pressure on family resources. Some people may be able to structure their assets so as to become eligible for Medicaid benefits. However, eligibility rules include transfer restrictions and lookback periods, so planning must be done carefully to avoid penalties.
How can you plan for incapacity?
A power of attorney appoints an agent to handle your financial and property matters if you ever need assistance. A health care proxy appoints someone to make medical decisions if you lose decision-making capacity. These are common parts of estate planning.
How can careful planning reduce future disputes among your family?
Although no plan can prevent every disagreement, thoughtful preparation gives your family stronger guidance and evidence of your intentions. Clear documents, proper execution and coordinated asset ownership can reduce ambiguity and make challenges to your actions less likely.
Contact a Brooklyn estate planning lawyer
At the Law Offices of Peter G. Gray, P.C. in Brooklyn, N.Y., we provide estate planning services tailored to clients’ family and financial circumstances. Call 929-367-4333 or contact us online for a free consultation.