People make several mistakes in life; after all, they are only human. However, some mistakes may be more costly than others, and some might have more wide-ranging effects than others do. One mistake that families often make is failing to participate in estate planning in New York. Not doing so can ultimately cause one’s valuable assets and property to end up distributed by the state, according to the laws of intestacy.
A person may choose to establish a trust, in which he or she can name someone — such as a child — as the beneficiary. Trusts are different from wills because they are private documents. Therefore, the details of the trust are not public knowledge and typically are not even subject to probate .
A revocable living trust typically is the best tool for many individuals who are trying to complete estate planning. The trust allows the probate process to be less complex and time-consuming when one dies. In addition, the beneficiary of the trust can receive distributions stretched out over time instead of in one lump sum, which can be helpful for young children who are not quite prepared to handle large sums of money.
Estate planning is critical because it allows an individual to dictate who will be beneficiaries and what these individuals will receive when the individual creating the estate passes away. An estate may feature investments, cash, vehicles and homes — to name just a few of the potential assets. Each person reserves the right to seek his or her family members’ best interests through comprehensive estate planning in New York.
Source: Forbes, Five Estate Planning Lessons From The Paul Walker Estate , Danielle and Andy Mayoras, Feb. 10, 2014