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Educate yourself about the foundational issues involved with any estate plan and get a better idea of what kinds of choices you will have to make.
Citation preview
GETTING
COMFORTABLE WITH
ESTATE PLANNING Educate Yourself About The Foundational Issues
Involved With Any Estate Plan and Get A Better Idea of What Kinds Of Choices You Will Have To Make
MICHAEL ROBINSON ROCHESTER, NEW YORK AREA ESTATE PLANNING ATTORNEY
One of the biggest hurdles preventing people
from starting an estate plan is that so few people
know anything about the process. Once you are
able to accept that your death will have
significant consequences for your family, and that
there are steps you can take now that will help
your family after you are gone, you will be ready
to face the difficult estate planning choices ahead
of you. To help you get a better idea of what kinds
of choices you will have to make, it’s good to educate yourself about the
foundational issues involved with any estate plan.
CHOICES AND PROCESSES
If there is a single idea that you need to understand about estate planning, it’s
that it is a process. There is no single step, tool, or option that will solve all of
your estate planning needs. Instead, estate planning is about looking at your
current situation, understanding what choices are available to you, and then
creating tools that match your desires.
The process of estate planning involves making specific choices. What kinds of
inheritances do want to leave? Who should act as the guardian of your minor
child if you’re involved in an automobile accident? What kind of medical
choices do you want to make if you are near the end of your life and are
sedated, unconscious, or unable to express your wishes?
All of these choices are yours to make. However, if you don’t make them
yourself, someone else will have to make them for you. Without an estate plan
Estate planning is a
process. There is no
single step, tool, or
option that will solve
all of your estate
planning needs.
in place that allows you to formally state your choices, you have no way of
controlling who will be responsible for making these decisions, or if those
people will make choices you would want them to make.
PROBATE AND ESTATE PLANNING
As you learn more about the estate planning process you will likely come
across the word “probate.” Probate is the legal process involved after a person
dies. A deceased person invariably leaves behind property that will need to go
to new owners. Probate law is the collection of laws that determine how this
happens. Probate courts, known as Surrogate’s Courts in New York, are
responsible for managing this process and ensuring it proceeds in accordance
with the law.
Much of the estate planning involves understanding of what will happen to
your property after you die and taking steps to try to avoid, or minimize, the
probate process whenever possible. Because probate can take a long time,
involve significant expenses, and leave your family members without their
inheritances until the process concludes, most estate plans focus on creating
tools that will allow your estate to bypass probate.
AGE AND ESTATE PLANNING
One of the most widely held misperceptions about estate planning is that it is
something that only applies to seniors and the wealthy. Though it is true that
wealthy people have more estate planning issues to deal with than others, and
that seniors have a more pressing need to develop a complete estate plan, you
don’t need to be either elderly or wealthy to create a plan. In fact, many
younger people, especially those with young children, have a great need to
develop an estate plan because they have others who rely upon them.
INHERITANCE PLANNING AND TAXES
Apart from probate, estate plans also focus on inheritances and the issues
involved with them. For example, many people used to create estate plans
primarily because they were worried about having to pay federal estate taxes.
In recent years this issue has decreased because the federal estate tax only
applies to people who leave behind large estates.
However, there are some people who will still have to be mindful of the estate
tax when they create their inheritance plans, in part because many States,
including New York, have their own estate tax that is independent of the
federal estate tax. Because of this, using certain tools like irrevocable trusts
may become necessary for those concerned about the estate tax issue.
Knowing when this issue might affect you and your estate is one of the major
questions you and your estate planning lawyer will have to address.
WILLS AND LIVING WILLS
With those general principles in mind, let’s take a look at some of the specific
choices you get to make through your state plan. Specifically, let’s take a look
at the difference between a last will and testament and the living will, and
what they allow you to choose.
Wills. Also known as a last will and testament, a will is a document
through which you make inheritance choices. Through your will you can
decide who will inherit your property. You also get to choose who will
represent your interests during probate, and get to choose who you
want to serve as a guardian of any minor children should you die before
they become of age.
Living wills. Even though they sound like they are related to wills,
living wills are very different types of documents. A living will only
takes effect if you are alive but incapacitated. Your living will gives you
the ability to tell your health care providers about the kinds of medical
care you do, or do not, wish to receive. A living will is often known as an
advance directive because you make it in advance of possibly becoming
incapacitated.
ONE TERM, MANY OPTIONS
To summarize the points made above, estate planning is not a one-size-fits-all
solution. Every capable adult should have an estate plan in place. As you get
older, experience changes in your life, and change your mind about various
issues, you can change or modify your plan to meet your changing
circumstances. The important thing is that you have a plan in place that is able
to address your concerns should the need arise. Failing to take the time to
create a plan means you rely on others to make your estate planning choices
for you. Creating a plan as soon as possible and ensuring that you keep it up-
to-date is one of the best things you can do to protect you and your family.
About the Author
Clients notice Michael Robinson’s unique approach to his
estate planning practice the minute they walk through his
office doors. Mike has established a law practice that
provides clients with a warm, comfortable and relaxed
atmosphere staffed by professionals who believe in
providing highly individualized attention.
That’s especially important in Mike’s practice, because
estate planning is an often personal process reflecting the
most cherished hopes and dreams of his clients.
“The estate planning we do for our clients,” Mike explains,
“often represents the culmination of their life’s work. That’s
why we take a personal interest in helping them complete
estate plans that suit their needs and that address the unique circumstances of their
families.”
There’s one last difference clients often remark upon in Mike’s estate planning practice.
“Because we concentrate on estate planning exclusively, we have the focus to bring state-of-
the-art, cutting-edge estate planning techniques and strategies to a broad range of clients,
no matter how diverse.”
Mike’s firm has the breadth of expertise to provide its clients with estate plans ranging
from the basic to the very sophisticated, including offshore asset protection trusts.
His office regularly conducts seminars on estate planning topics throughout the Rochester
and Finger Lakes area. Mike has also been a guest speaker on the subject of estate planning
before a variety of professional organizations.
The Law Office of Michael Robinson, P.C. 196 North Main St. PO Box 417 Naples, NY 14512 www.mrobinsonlaw.com Phone: (585) 374-5210