Estate Planning for Families

The traditional definition of estate planning is the arranging for the transition of your property to your heirs and others. Estate planning addresses the management and disposition of your assets (money, investments, real property), support for you and your loved ones, and end of life decisions.

The Law Office of Melissa L. Carvajal, P.C., located in Long Island, New York, defines estate planning as the arranging of your assets for the smooth, hassle-free transition to the next generation by avoiding probate and arranging for your financial, legal and healthcare decisions to be made by someone you know and trust while protecting yourself against medical incidents, dementia, Alzheimer’s disease, alcohol and drug addictions, accidents or random acts of violence.

A sound estate plan keeps all your options on the table in case of your incapacity or death. For example, an estate plan covers the transfer of your wealth to your desired inheritors. The plan makes sure you and your family are taken care of according to your wishes. With the right plan, you maintain control of your assets and your health care and end of life options. Remember, if you don’t have an estate plan, the state will make choices for you.

Why Do You Need Estate Planning in Long Island?

You worked hard to attain your standard of living, raise and educate your children, and provide for your retirement years-estate planning will insure both you and your family are taken care of. If you DO NOT have an estate plan, the state will take actions you may not want.  If you do not have a will or trust in place, the state will decide for you who and when people get your assets and the results may not be what you wanted.   

There are a myriad of benefits to having a proper and effective estate plan.  Estate planning is peace of mind.  When your estate plan is completed, you will know that people you know and trust will be there for you and have the legal authority to help you without the need for court interference and intervention in your life.  

Other benefits include: 

You will minimize hassles for your family like probate and guardianships and you will make sure your family is cared for the way you want.  

You can protect your adult children, those with special needs, those with addictions such as alcohol, drugs and gambling, those with debts, and/or children that may be headed for divorce.  

You can protect your minor children. 

You control your money and other assets so your children do not squander them.

You control your money and assets so a Judge does not.

You get to choose the guardians.

You can provide money to charity.

You can get money to your family quickly and privately.  A proper estate plan will avoid probate entirely.

You will save your family from difficult decisions in the event that you become incapacitated or incompetent.

You will ease burdens on your family by preventing probate, guardianship hearings and potential in-fighting.  

Most people only address estate planning when they are older and have a catastrophic health issue. It would be safer to create an estate plan much earlier. For example, anyone with children should have an estate plan regardless of age.  New York State law says if you are married, have kids and you die, your spouse would receive half your assets and your children would receive the other half. That may not be the outcome you want, especially if you have minor children and now half your estate will be guarded by the state in a  controlling and restrictive manner until your children turn 18, instead of your surviving spouse getting your entire estate (this is the outcome most people would want and the outcome most people believe will occur but will not without a proper plan in place).  

Whether you are single, newly married, or starting a family, it is imperative you have planned ahead for milestones in your future.  It is never too early to begin the process of planning for your retirement and making smart investment choices that will allow you to grow wealth. You also need to ensure that you take steps to care for your loved ones in case of disability or premature death, and that you have a plan in place in case illness or injury occurs so your loved ones will not have to make difficult choices in a time of grief. 

Every estate plan is different but they should contain these key elements:

• A Last Will and Testament with some additional documents to avoid probate that covers how you want your assets distributed upon death
• A Trust and Pour-over Will that smoothly distributes your assets 
• A Power of Attorney that names a trusted individual to manage your property/ finances during your lifetime if you cannot
• A Health Care Proxy that appoints a trusted individual to make medical decisions for you if you lose capacity to make decisions for yourself
• A Living Will (also know as an "advanced directive") that expresses your intentions regarding whether you are to be kept alive by artificial means
• A Burial Agent Designation Form that gives a trusted individual instructions or wishes you desire to be followed in the disposition of your remains
• a Medical Information Waiver (also known as a "HIPPA waiver")