Oftentimes, parents desire to give the world to their kids. Since they can’t literally give this to their children, they often opt to contribute positively to their lives in as many ways as possible, whether by saving for their college or teaching them how to build a savings account. However, one of the most valuable things that parents can do in New York is to create a will for their kids as well as for other family members. A recent article provides some tips on how to begin the process of will execution confidently.
Failure to engage in estate planning prior to one’s death could lead to assets that are being transferred to a beneficiary being taxed more than is actually necessary. Although estate planning was touted as a need for only wealthy individuals in the past, it is becoming more common for others to engage in this process. With proper estate planning, people can determine exactly where they want their assets to go, no matter how much or little they may own.
Assets can include retirement savings, annuities, insurance policies, real estate and investments. It is typically wise to make a list of all of one’s assets and then to provide contact information for the beneficiaries so that these family members or friends can easily access them. A will is another important document for naming both a healthcare proxy and a power of attorney should a person become incapable of handling important decisions due to a sudden illness or injury.
By planning ahead, New York parents can have a good idea of what assets they have, the value of these assets and how to appropriately distribute them to their children or other relatives in the event that they die. Failure to engage in estate planning means that the state will have to ultimately decide on who exactly your beneficiaries are, which can sometimes go against an individual’s wishes and, in the process, cause heartache for all family members involved. An understanding of contemporary laws and a willingness to be proactive in will execution can help a person to feel confident that his or her dying wishes will be met one day.
Source: foxbusiness.com, 4 Tips to Begin the Estate-Planning Process, Kathryn Buschman Vasel, Nov. 22, 2013