Individuals don’t take time to put together their wills for a myriad of reasons. Some people simply don’t feel they have the time to do it. Others don’t feel the need to do it, while others prefer to avoid the troubling topic of death. However, being prepared now for one’s untimely death in New York through proper will execution can help to prevent strife among family members in the future. One recent article describes some of the most common mistakes made during the estate planning process.
First, people often think they are too young to be bothered with producing their wills. However, even if people don’t have many assets, they should still designate powers of attorney to decide how they will be cared for at the end of their lives. In addition, a person should set up a trust fund that allows a trustee to disperse cash to a beneficiary at certain time periods rather than simply leaving a lump of cash to the beneficiary.
An estate plan also should be edited as an individual’s financial circumstances change due to situations such as divorce, marriage or the birth of a child. People who have quite a few assets to leave to family members additionally should consider the tax consequences of doing so, as their loved ones will have to pay estate taxes. However, while a person is alive, he or she can legally gift assets of up to $13,000 per year to another person.
Estate planning ensures that both a person as well as family members are taken care of when that person is faced with death. If will execution is not completed, a person’s estate in New York may end up being distributed according to the state’s plans rather than according to his or her own desires. This can negatively impact the beneficiaries a person wishes to help in the event that he or she dies.
Source: Business Insider, 5 Common Estate Planning Mistakes To Avoid , Mandi Woodruff, Oct. 21, 2013