Every August, National Make-A-Will Month serves as an important reminder to create, or review, your estate plan.
Every adult, not just retirees or wealthy individuals, should have an estate plan. Not only does planning in advance ensure that your assets are distributed according to your wishes rather than New York’s default inheritance laws, but it can also can identify who may make financial and medical decisions for you if you become unable to do so yourself.
More Than a Will: Protecting Yourself and Your Family
Estate planning is about protecting yourself and your family, not just deciding who inherits your property after your death.
While a will is an important part of the process, a comprehensive estate plan may also include a power of attorney, Health Care Proxy, living will, a review of beneficiary designations and property ownership, and, when appropriate, trusts to help ensure your wishes are carried out during your lifetime and after your death.
Why Everyone Needs an Estate Plan
Estate Planning Isn’t Just for the Wealthy or Older Adults
One of the most common misconceptions about estate planning is that it is only necessary for wealthy families or older adults. In reality, estate planning is relevant to virtually every adult, regardless of age, marital status, or income.
You Have People, Property, and Decisions to Protect
You may own a home, vehicle, retirement account, bank account, life insurance policy, digital property, or personal belongings and have specific ideas about who receives such assets upon your death. You may have children, a spouse, a partner, parents, siblings, friends, or charitable organizations you want to protect. You may also have strong preferences about who should make decisions for you if an illness or injury leaves you unable to act for yourself.
Put Your Wishes and Priorities in Place Before a Crisis
An estate plan helps answer those questions in advance. Whether you are beginning your career, raising a family, building a business, approaching retirement, or helping aging parents, a thoughtful plan can provide clarity during situations that might otherwise become legally and emotionally complicated.
Give Your Loved Ones Clarity When They Need It Most
More importantly, planning ahead can make difficult circumstances easier for the people you care about. Clear instructions can reduce uncertainty about your wishes and give loved ones a roadmap when they may otherwise be forced to make important decisions during an already stressful time.
Estate Planning Can Matter as Soon as You Turn 18
Turning 18 Changes a Parent’s Ability to Make Decisions
Estate planning is not limited to people who have accumulated significant assets. Once a person reaches adulthood, parents generally should not assume they will automatically have broad authority to make financial or medical decisions for an adult child.
A college student or young worker may not need sophisticated tax or trust planning, but a Health Care Proxy and power of attorney can identify who may assist with medical and financial matters during an emergency. Such documents eliminate guessing and potential guardianship issues.
A Will Is Important – But It Is Only Part of the Plan
A will directs how your individual assets should be distributed after your death and the person who should administer your assets and follow your directions – your Executor. Within a will you may also nominate a guardian for minor children and even create trusts for beneficiaries to control their inheritance.
But a will does not address every circumstance.
A power of attorney can authorize someone you trust to handle financial and legal matters if you are unable to do so or otherwise upon your direction. A Health Care Proxy can identify who should make medical decisions if you cannot make or communicate those decisions yourself. A living will can provide guidance about your medical treatment preferences.
Estate planning also includes discussion about your assets that may also pass according to beneficiary designations or forms of ownership rather than through your will. In addition, depending on your circumstances and goals, a trust or other specialized planning may also be appropriate.
The important point is that these pieces should work together. An effective estate plan not only coordinates how your property will pass after your death, but who can assist you if you are incapacitated during your lifetime.
Stay in Control: What Can Happen If You Don’t Plan Ahead
Without a Will, New York Law Determines Who Inherits
Without a valid will, New York’s intestacy laws determine who inherits your property. That result may not reflect your personal wishes, relationships, or priorities, and can come as a surprise to your survivors.
Without the Right Documents, Loved Ones May Be Unable to Act
Estate planning is also about more than inheritance. If an illness or injury leaves you unable to manage your affairs without appropriate financial or health care documents in place, loved ones may not have the authority they need to assist you immediately. In some circumstances, court involvement may be required before someone can legally act on your behalf as a guardian.
Planning Ahead Lets You Make the Choices
Planning ahead gives you the opportunity to make these choices yourself: who should receive your property, who should administer your estate, who should handle financial matters and who should make health care decisions if you cannot.
Give Your Family Clarity During a Difficult Time
It can also provide something equally important to your family: clarity. Instead of leaving loved ones to determine what you would have wanted during a difficult time, an estate plan gives them guidance based on decisions you made in advance.
Already Have an Estate Plan? Why Regular Reviews Matter
Your Estate Plan Should Change as Your Life Changes
Creating an estate plan is not a one-time task. Even a carefully prepared plan can become outdated as your family, finances, health, and priorities change, as well as laws.
An older will may name an executor who is no longer able or willing to serve. Beneficiary designations may still identify a former spouse or someone who has passed away. A power of attorney or Health Care Proxy may appoint a person who is no longer the best choice. New property, retirement accounts, business interests, children, or grandchildren may not be addressed as intended. Tax laws may change warranting updates to terms of your will.
Major Life Changes Should Prompt a Review
You should consider reviewing your estate plan after major life events, including:
- Marriage or divorce
- The birth or adoption of a child
- The death of a family member or named decision-maker
- The purchase or sale of a business
- Retirement
- A significant change in assets
- A major change in health
- A move to another state
Even Without a Major Change, Review Your Plan Periodically
Even when no major event has occurred, reviewing your estate plan every few years can help confirm that your chosen decision-makers remain appropriate, beneficiary designations are current, property ownership is coordinated with your plan, and your documents continue to reflect your wishes.
Does Your Estate Plan Still Fit Your Life Today?
National Make-A-Will Month is therefore not only a reminder to create a will. It is also an opportunity for people who already have an estate plan to ask an important question: Does the plan I created years ago still work for the life I have today?
Take the Next Step During National Make-A-Will Month
If you have never created an estate plan, National Make-A-Will Month is an opportunity to begin. If you already have one, August can serve as a reminder to locate your documents and consider whether changes in your family, finances, health, property, or goals require an update.
You do not need to have every decision made before speaking with an attorney. An experienced estate planning attorney can help you identify the issues that matter to you, understand the options available, and coordinate the documents appropriate for your personal and family circumstances.
How Lipsitz Green Can Help
Because every family’s circumstances and goals are unique, estate planning requires personalized legal advice.
Whether you’re creating your first estate plan or updating existing documents, the attorneys at Lipsitz Green Scime Cambria can help you protect your assets, provide for your loved ones, honor your end-of-life wishes, and create a plan that provides clarity for you and the people who matter most.
Estate Planning attorney Lucy Berkman will answer your questions, explain your options, and guide you through the estate planning process. Contact Lucy Berkman at 716 844 3504 or lberkman@lglaw.com.
