To truly prepare for the unexpected in life, there are a number of estate planning tools you can utilize to ensure your finances are handled exactly how you want. Most estate planning attorneys provide all or most of the outlined estate planning tools under one package.

Last Will and Testament: A will goes into effect the moment you pass away. Although it has to go through the probate process and be considered valid, it outlines how you want your assets to be distributed. Whether you want it to go to a charitable organization or a friend, the will is used to specify your exact wishes. If you have a minor child or a dependent who is mentally or physically challenged that is under your care, you can specify who their next guardian should be at the time of your passing. It is always advisable to have an attorney prepare a last will and testament to ensure that the likelihood of a will contest is unsuccessful. When using a document preparation company, they may not always be privy to laws of your state.

Living Will: This document also goes by the name of a healthcare proxy. If and when an individual becomes terminally ill or incapacitated and cannot voice their wishes or objections, a living will is used outlining your specification as far as medical care is concerned. The person you appoint in your proxy as your agent makes the decision for you based on the previously drafted instrument.

Power of Attorney: A POA is an important financial tool that appoints an individual to essentially be your personal representative. For example, assume you are incapacitated or unable to attend a real estate closing, you can appoint someone as your power of attorney so they can make the meeting for you. You also have the option to specify their exact capacity and what decisions they can make on your behalf. They can enter into banking transactions, pay bills when you cannot, and can even make estate planning decisions such as converting an existing revocable trust into an irrevocable trust. 

Irrevocable Trust: With an irrevocable trust, you position yourself on saving money on two fronts. Not only can you save on estate tax but you also avoid probate. If you did not know already. probate lasts at least seven months and can take several years for everything to settle. During that time, an executor needs to be compensated as well as an attorney that assists in administering your estate. With a trust, your funds and property are held within a separate entity that is distributed by the trustee. You select the beneficiaries and state under what circumstances they should receive the funds. Although a trust may be more expensive than a will, in the long run you can save a lot more time and money. Also, most people are unaware that they can qualify for Medicaid even if they own assets. With a Medicaid Asset Protection Trust you can keep your assets and still get the healthcare you deserve when old age approaches. 

It is always advisable to contact an attorney whose practice concentrates on estate planning. An estate lawyer will understand the various nuances that can emerge in the probate of a will or general estate planning circumstances. With the emergence of social media, retaining an attorney has become significantly easier. Using a website like lawyer.com or even Yelp can assist you in finding the right NYC Probate and Estate Lawyer. Be sure to contact our firm at (646) 535-1667 if you have any questions.