Wills, Trusts & Estates

In New York, estate planning is the process of organizing your affairs to ensure that your assets are distributed according to your wishes upon death, and that your family is taken care of. Here’s a step-by-step breakdown of the process from beginning to end: 
 
Initial Consultation 
   The estate planning process begins with an initial consultation with an attorney. During this meeting, you’ll discuss your financial situation, family dynamics, and personal goals. The attorney will help assess what legal documents and strategies are needed to create a comprehensive plan. 
 
Taking Inventory of Assets 
   Next, you’ll create an inventory of all your assets. This includes property, bank accounts, investments, retirement accounts, life insurance, and any other valuable items. You’ll also take stock of any debts or liabilities. 
 
Understanding Goals and Concerns 
   Your attorney will ask about your goals. Do you want to minimize taxes? Protect certain assets? Provide for minor children? These discussions help to identify any special provisions, such as setting up trusts for minor children, charitable giving, or business succession planning. 
 
Drafting Legal Documents 
   The core documents in an estate plan often include: 
   - Last Will and Testament: Directs how your assets will be distributed upon death. 
   - Living Trust: If appropriate, a trust may be set up to avoid probate, manage assets during your lifetime, or provide for beneficiaries. 
   - Durable Power of Attorney: Appoints someone to manage your financial affairs if you become incapacitated. 
   - Health Care Proxy and Living Will: These documents allow someone to make medical decisions for you if you cannot, and state your wishes for end-of-life care. 
 
Reviewing Beneficiary Designations 
   Certain assets, like life insurance or retirement accounts, pass directly to designated beneficiaries and are not governed by your will. It’s important to review and update these designations to ensure they align with your overall estate plan. 
 
Minimizing Taxes 
   In New York, if your estate exceeds certain thresholds, estate taxes may apply. Your attorney will advise on strategies to minimize tax liabilities, such as gifting strategies, trusts, or charitable donations. New York has its own estate tax threshold, which differs from the federal threshold. 
 
Executing Documents 
   Once the documents are drafted, they must be executed properly. Wills and other documents require specific formalities in New York, such as signing before witnesses. The attorney will ensure that all documents are valid and enforceable. 
 
Funding Trusts (If Applicable) 
   If you’ve created a trust as part of your estate plan, you’ll need to fund it by transferring assets into the trust. This may include changing titles to property or transferring bank accounts into the trust’s name. 
 
Review and Update Plan 
   Estate planning is not a one-time event. Life changes, such as marriage, divorce, birth of children, or changes in financial circumstances, may require updating your estate plan. Regular reviews with your attorney ensure that your plan continues to reflect your current wishes. 
 
Probate or Trust Administration 
   Upon death, if you have a will, your estate will go through the probate process. In New York, this is handled by the Surrogate’s Court. The court will validate the will, and the executor will handle paying debts, distributing assets, and filing any necessary tax returns. If a trust was used, the trustee will manage the distribution of assets according to the terms of the trust, potentially avoiding probate. 
 
The estate planning process in New York can seem complex, but it is essential for protecting your loved ones and ensuring your wishes are honored. Working with a knowledgeable attorney can make the process smoother, helping to avoid probate complications, minimize taxes, and ensure that your assets are distributed according to your plan.