What is an Estate Plan?
An estate is comprised of everything you own, from your car, home, investments, and personal possessions. No matter how large or how modest your estate is, an estate plan will you give control over how things are given to the people or organizations you care about the most. Can also be summarized as a written plan in advance with instructions stating whom you want to receive the things you own after you die. Even if you are not “wealthy”, an estate plan often means more to families with modest assets, because they can afford to lose the least.
What happens if I die without an Estate Plan?
Without a Will in place, the court of law will establish who is entitled to receive the decedent’s property. Also known as probate, this process may take months to several years. This can be distressing to your beneficiaries, especially if finance is difficult and there are bills to pay.
How long does probate take?
Depending on the type of estate, New York probate can take anywhere from a few months to three years, with an average time of 12 months. There are several factors that lengthen the probate process from Family members being uncompliant, to Court schedule being unavailable, and the worst and most common, Will contests amongst the beneficiaries. Once in litigation, one can expect to add several years to the process.
What are the advantages of a a Trust as oppose to a Will?
A trust is more efficient and private as oppose to a Will. If a living trust was set up properly, all property and assets will be transferred immediately upon death to a success trustee. A Will will still have to go through probate and can take several months to years. Additionally, a Will is public so everyone can see what is happening with the probate process. You can expect to be harassed by creditors and unscrupulous individuals who prey on people who are extremely emotional during this period.
How do I protect my assets?
There is a myriad of options available from establishing an Will, Irrevocable Trust, Long Term Care Insurance, or even gifting it to those you trust. There is no right or wrong age to start your planning process. The longer you wait in life, the more you run the risk of your money not being protected.
What is the difference between Medicare & Medicaid?
Medicare is run by the U.S. Government and provides health coverages to people over 65 as well as those under 65 who have a qualifying disability. Medicaid is a needs-based assistance program to people with little to no income. Medicaid as oppose to Medicare is administered by each state so the rules and benefits differ between each state. If you don’t qualify for Medicaid, you will likely pay out of pocket that can costs thousands of dollars per month depending on your condition and situation.
Why retain an Attorney to establish an Estate Plan?
An attorney can save you time and surprisingly, money. A poorly created trust can be confusing, expensive, and at worst, ineffective. These mistakes can end up costing you or your heirs a lot more than you saved in legal fees. Contact us today to see what we can do for you!