Many New York residents put off developing an estate plan because thinking about death makes them feel uncomfortable. This is completely understandable, but people who are able to tackle these thorny issues rarely regret doing so. With an estate plan in place, you will know that your legacy is protected and your loved ones will be taken care of after you pass away, which provides great peace of mind. An estate plan could also help your loved ones during a very difficult time by relieving them of decision-making responsibility should you become incapacitated.
Estate planning basics
A last will and testament is usually the foundation of an estate plan. Before you draft your will, you should think carefully about who you will ask to act as your executor. Executors have many important estate administration duties, so try to pick someone who is diligent, detail-oriented and conscientious. If your estate is considerable and you are worried about how your heirs would handle a large inheritance, you may want to consider placing your assets in a trust instead of drafting a will.
Directives and powers of attorney
Health care directives and powers of attorney are an aspect of estate planning that can help your loved ones while you are still alive. These documents provide instructions for your medical treatment or appoint a responsible person to make financial decisions on your behalf if you become incapacitated. Other important tasks associated with estate planning include checking that the beneficiaries on your insurance policies are current and designating guardians for your minor children.
An estate plan is for living
People usually associate estate plans with death, which may explain why only half of American adults have one. While thinking about the details of an estate plan may be difficult, the benefits of dealing with them can be profound. Your estate plan is your final gift to your family, and its greatest benefit is peace of mind.