If you have been thinking about your estate plan lately, you may be wondering the same thing that many other people ask, "do I need a power of attorney?"
When it comes to planning for the future, there is really no such thing as being over-prepared. Creating and maintaining a comprehensive estate plan in New York is an important element of preparing for the future. Once you have established an initial plan, the work is still far from over.
When people plan for the future, they focus on things such as buying a house, buying a car, having a family. Later in life, they plan for how the house and the car are going to be distributed amongst the family.
Estate planning is about more than just passing assets from generation to generation. A balanced estate plan also addresses how your affairs should be handled in the event that you are unable to manage them yourself.
Estate planning can be a complex process. Those attempting to put together a balanced plan likely find themselves navigating difficult questions like:
Baby Boomers have a reputation for breaking through old stereotypes, and they're at it again. Not be outdone by previous generations, Baby Boomers are living longer and more actively. Boomers are taking up new hobbies (paddle boarding, anyone?) and traveling to foreign destinations (off to Europe to explore our roots!). They are grabbing retirement with both hands and making the most of every minute.
Too many individuals have preconceived notions that only elderly or sick people need to worry about estate planning. In truth, everyone - regardless of health, wealth or age - should take the time to draft a comprehensive estate plan. Having these documents in place not only gives you peace of mind, it also lets you control who gets what when.
Trusts can be an extremely effective tool when creating an estate plan that best meets your and your family's needs. There are numerous kinds of trusts available that all work a little differently.
A will is an effective way of transferring assets upon death, but it isn't the only way. Many people are surprised to hear that they can accomplish the same goals, plus receive additional benefits, by creating a revocable trust.
A trust is an estate planning tool that allows people to transfer assets out of an individual's name, thereby protecting and shielding the assets. Trusts can be especially useful in times of crisis. For example, assets can be placed in trusts to keep them out of Medicaid's reach when a person is in need of home care or nursing home care.