FAQ: Estate Planning

What is estate planning?

Estate planning involves creating legal documents to manage your assets during your lifetime and distribute them after your death. It includes wills, trusts, powers of attorney, and healthcare directives to protect your wishes and provide for your family.

Why is estate planning important?

Estate planning ensures that your assets are distributed according to your wishes, avoids family disputes, minimizes taxes, and provides for loved ones, including minor children or dependents. It also helps you plan for incapacity by appointing trusted individuals to make medical and financial decisions on your behalf.

How can an attorney help with estate planning?

An attorney can help you:

• Develop a plan tailored to your goals and circumstances.

• Create and review key documents to ensure they are legally valid.

• Minimize taxes and avoid probate.

• Navigate complex situations, such as blended families or special needs beneficiaries.

• Personalize your plan to reflect your unique wishes and circumstances. While online tools or AI might offer generic templates, an experienced attorney can provide customized advice that accounts for your specific family dynamics, assets, and goals. This personalized approach helps prevent costly errors and gives you peace of mind, knowing your plan is legally sound and will be executed as intended.

What happens if I die without a will?

If you die without a will (intestate), state law determines how your assets are distributed. Typically, your spouse and children inherit your estate, but this may not reflect your wishes. Without a will, the process can be time-consuming and costly for your loved ones.

What is a trust, and how is it different from a will?

A trust is a legal entity that holds assets on behalf of beneficiaries. Unlike a will, a trust can avoid probate, offer privacy, and provide ongoing asset management. Trusts are often used to minimize estate taxes, protect assets from creditors, and provide for minor or disabled beneficiaries.

What documents should be included in my estate plan?

A comprehensive estate plan typically includes:

• Will – Specifies how your assets are distributed and appoints guardians for minor children.

• Revocable Living Trust (if applicable) – Manages assets during your life and after death.

• Power of Attorney – Authorizes someone to manage your finances if you're incapacitated.

• Healthcare Proxy – Appoints someone to make medical decisions if you can't.

• Living Will – Outlines your wishes regarding end-of-life care.

• Beneficiary Designations – For assets like life insurance or retirement accounts.

What is probate, and can it be avoided?

Probate is the court-supervised process of validating a will and distributing assets. It can be time-consuming and costly. You can avoid probate by using tools like revocable living trusts, joint ownership, and beneficiary designations.

How often should I update my estate plan?

You should review and update your estate plan after major life events, such as marriage, divorce, the birth of a child, or a significant change in your financial situation. Otherwise, it's recommended to review your plan every 3-5 years to ensure it reflects your current wishes and legal changes.

What are the tax implications of my estate plan?

In New York, estates valued above the state exemption amount (currently $6.58 million for 2025) may be subject to the New York estate tax. There is also a federal estate tax for estates exceeding $13.06 million. Proper planning can help minimize or eliminate these taxes using trusts, gifting strategies, and other tools.

Can I leave specific instructions for my healthcare if I become incapacitated?

Yes. A living will allows you to specify your wishes regarding life-sustaining treatments, while a healthcare proxy designates someone to make medical decisions on your behalf if you're unable to do so.

What is a power of attorney, and why is it important?

A power of attorney (POA) gives someone the authority to handle your financial affairs if you become incapacitated. Without a POA, your family may need to go to court to obtain guardianship, which can be expensive and time-consuming.

Can I disinherit a family member?

Yes, but specific steps must be taken to ensure your wishes are legally binding. For example, simply omitting a child or spouse from your will may not be enough. We suggest discussing specific options with your attorney.

What is a healthcare proxy, and how does it differ from a living will?

A healthcare proxy appoints someone to make medical decisions for you if you're incapacitated. A living will outlines your preferences for specific medical treatments, such as life support or resuscitation. Both documents are important to ensure your healthcare wishes are respected.

Can I plan for special needs beneficiaries in my estate plan?

Yes, you can create a special needs trust to provide for a beneficiary with disabilities without jeopardizing their eligibility for government benefits like Medicaid or Supplemental Security Income (SSI). These trusts are carefully structured to comply with program rules.

How can I ensure my minor children are cared for after my death?

You can name a guardian for your minor children in your will. This person will take legal custody of your children if you pass away. You can also create a trust to manage assets for their benefit, specifying when and how they receive distributions.

Should I include digital assets in my estate plan?

Yes. Digital assets like online accounts, social media profiles, and cryptocurrency can be included in your estate plan. You can authorize a trusted person to access and manage these accounts and provide instructions for their distribution or closure.

Can I give gifts to reduce the size of my estate?

Yes. You can make annual tax-free gifts (up to $17,000 per recipient in 2024) to reduce your estate. Additionally, you can pay medical or educational expenses directly on behalf of someone without it counting toward your gift tax exemption.