Many people procrastinate about creating an Estate Plan. Here are the Top 5 reasons why you should create an estate plan now
1. Minor Children- In the event of a catastrophic accident making sure that your children are cared for in the event of you and your partners death is absolutely necessary. With some simple estate planning you can designate a guardian who would take care of your children in the event of a disaster.
2. Intestacy- New York has a default estate plan for you if you die without a will. This can possibly mean leaving money outright to an eighteen year old so they can spend it on a Corvette instead of College or having your estate pass to your Uncle George who you despise.
3. Guardianship- Besides a will, a power of attorney and health care proxy are necessary for your estate plan. If you do not have these documents and you become incapacitated a Guardianship proceeding may be brought for you and this proceeding can be very costly.
4. Protecting Beneficiaries- If you have a beneficiary who is receiving public benefits such as Medicaid, an inheritance might disqualify them from these public benefits. A supplemental needs trust can be created so that the beneficiary would not become disqualified from public benefits and this money could be used to supplement their care.
5. Reduce or Avoid Estate Tax- The use of disclaimer wills or trusts can reduce or completely avoid New York Estate tax.