When most people hear the word Will, they have a cursory idea of what it means, which is usually that there is a simple document explaining how someone’s wealth should be distributed upon their death. In actuality, there is much more to consider when it comes to a Will and that includes keeping in mind the intended beneficiaries who will have certain types of wealth or other assets passed on to them.
The estate planning attorneys at The Law Offices of Todd Cushner & Associates know that establishing a will and the planning process that comes with it can be complex. They possess in-depth knowledge of the legal and personal issues that are involved when it comes to planning an estate. It’s up to the individual to decide if they want to disclose the contents of their will before they pass away, but many times it’s very helpful to get questions out of the way now, to avoid any surprises or ill will among beneficiaries when they are gone. This is particularly helpful if businesses or real estate are involved as it could potentially affect the responsibilities and sometimes even the financial standing of the person receiving it.
A recent article in the Wall Street Journal by finance guru Warren Buffet explains this strategy in detail. It includes commentary that details “when parents are transparent about their wishes, they can often help their children manage any conflicts and reach an understanding, if not forge closer ties and greater respect for one another.”
Why Have a Will?
Many people assume that upon their death their assets will automatically be distributed to a spouse or close family member, but then you are leaving it up to chance that your property will be distributed in the way that you prefer. More importantly, if you pass away without a Will and there is a child under 18 years old, the custody of the child will be left in question if there is no other parent. No matter the size of your assets, having a will makes it much easier for the executor and your family to untangle how your assets will be handled.
Other Options
There are other ways to manage your money. You can also establish a trust, which is a legal entity under which one person, the “trustee,” holds legal title to property for the benefit of others (the beneficiaries) and must follow any rule stipulated in the document.
Three Type of Trusts
There are three basic types of trusts and the estate planning attorneys at The Law Offices of Todd Cushner & Associates are well versed in not only the legal standards of each, but also how to guide a client when deciding which one would work best for their needs.
Revocable vs Irrevocable Trusts
A “revocable” trust is one that may be changed or rescinded by the grantor, the person who created it. If you have second thoughts about a provision in the trust or change your mind about who should be the beneficiary, then you can modify the terms of the trust through a “trust amendment. ”An “irrevocable trust” cannot be modified or terminated without the permission of the beneficiary. After the grantor has transferred assets into the trust, they remove all of their ownership rights of the assets and the trust. The property is safe from creditors and is preserved for the beneficiaries.
Testamentary Trusts
Testamentary trusts can allow spouses to leave funds for their surviving institutionalized husband or wife that can be used to pay services that are not covered by Medicaid.
Supplemental Needs Trusts
For people who are disabled and under the age of 65, Medicaid has certain exceptions for care.
Even after moving to a nursing home, if you have a relative who is under 65-years-old and disabled, you can transfer assets into a trust for their benefit without incurring any period of ineligibility. Unfortunately, after the disabled individual dies, the state must be reimbursed for any Medicaid funds spent on behalf of the disabled person.
The attorneys at The Law Offices of Todd Cushner & Associates have a broad range of experience in a number of matters, including Wills, Trusts, Powers of Attorney, Health Care Proxies, Living Wills, Will Contests, as well as Probate and Estate Litigation. They have also successfully represented clients in a broad range of Surrogate’s Court litigation, including contested probate proceedings.
Call today at (914)600-5502 for a free consultation. This will help to put your mind at ease while taking the first step in organizing your affairs now, so there are no surprises later.
