When someone dies without a will in New York, they are considered to have died "intestate." Your assets will be distributed according to the state's intestacy laws. This means your estate would go to your closest natural heirs, typically your spouse and/or children.
Unfortunately, there are a number of disadvantages to dying intestate, among them:
Lack of Control: You have no say over how your assets will be distributed. State law dictates the distribution, which may not reflect your wishes.
Potential Family Conflict: The automatic distribution rules can lead to disputes among family members, especially if they feel entitled to more than what the law provides.
Unintended Beneficiaries: Assets may go to relatives you wouldn’t have chosen, such as distant family members, rather than friends or charities you might have preferred to support.
Guardian Appointments: If you have minor children, the court will decide who will care for them, which may not align with your wishes.
Tax Implications: Lack of planning can result in higher taxes or inefficient distribution of assets, potentially reducing the overall value passed to your heirs.
Overall, dying intestate can complicate matters and create challenges that can be avoided with a well-prepared will.
A power of attorney (POA) is a legal document that allows you to designate someone else to act on your behalf in financial or legal matters. It's a powerful planning tool that has a number of uses:
1. The agent can manage your financial affairs, such as paying bills, managing investments, or handling real estate transactions, depending on the powers granted.
2. A durable power of attorney remains effective even if you become incapacitated, while a non-durable POA becomes invalid if you can no longer make decisions.
3. You can grant specific powers for particular tasks or general authority to handle all financial matters.
Although a POA can be revoked by you at any time so long as you're mentally competent, knowing that someone you trust can take care of your affairs in case of incapacity can provide significant peace of mind for you and your loved ones.
Advance directives are legal documents that outline your preferences for medical treatment and healthcare decisions in the event that you become unable to communicate those wishes. They are an important aspect of estate planning, ensuring that your healthcare choices are respected. There are three types of advance directives in New York: a health care proxy, a living will, and a do not resuscitate order (DNR).
Health Care Proxy: a health care proxy is a legal document that allows you to appoint someone you trust to make medical decisions on your behalf if you become unable to do so yourself. This could be due to illness, injury, or incapacity.
Living Will: A living will is a legal document that allows an individual to outline their preferences for medical treatment in the event that they become unable to communicate their wishes due to a serious illness or injury. It typically specifies what types of life-sustaining treatments the individual does or does not want, such as resuscitation, mechanical ventilation, or tube feeding. When a person is unable to make their own healthcare decisions, the living will is referred to by medical professionals and family members to ensure that the care provided aligns with the individual’s wishes. A living will is not typically a standalone document; it is often part of a broader advance directive plan that includes a health care proxy.
Do Not Resuscitate Order (DNR): A DNR is a specific document that tells healthcare providers not to perform cardiopulmonary resuscitation (CPR) or other life-saving measures if a person's heart stops beating or they stop breathing. It is a different document from a living will. While a living will outlines general preferences for medical treatment, a DNR specifically addresses resuscitation efforts.
A revocable trust is a legal document that allows you to place your assets into a trust during your lifetime. You maintain control of those assets while you’re alive, and upon your death, the assets are transferred to your designated beneficiaries without going through probate.
Some key benefits:
Revocable: The terms of the trust can be changed at any time while you’re alive.
Control: You can act as the trustee, managing the assets in the trust, or appoint someone else to manage it for you.
Privacy: Unlike a will, which becomes public after probate, a living trust is a private document, keeping your estate details confidential.
Avoiding Probate: Assets in a living trust pass directly to beneficiaries, which can save time and reduce costs associated with probate.
A living trust can be a powerful tool in estate planning, especially if you have specific goals for how your assets should be managed and distributed. If you're considering setting one up, consult with the Law Office of Matthew Newberry to ensure it's tailored to your needs.