What is estate planning and why is it important what should be included in estate planning?

Planning your estate is about making arrangements to ensure that all of your assets, or "estate", go to the right people upon your death. An estate could include land, vehicles, bank accounts, and investments, as well as jewelry and other valuable items. It can be complicated and time-consuming to plan your estate. This person could be a lawyer, a financial advisor, or a friend who can assist with the documentation, planning, and execution of your will.

What is the process of estate planning?

Estate planning is the process of deciding how assets will be managed and distributed after a person's death. It includes the management of a person's assets and financial obligations in case they are incapacitated. Contrary to popular belief, estate planning is not a tool reserved for the wealthy. Anyone can and should think about estate planning. An individual could have a number of assets, including houses, stock, art, life insurance, pensions, and debt. There are many reasons why an individual might want to plan their estate. These include protecting family wealth, providing for a spouse or children, funding the education of children or grandchildren, and leaving a legacy for charity.

Why should I write a will?

A will is a legal document that outlines how an individual's property, custody, and other matters should be dealt with after their death. In a will, the individual names an executor or trustee to whom they trust to carry out their intentions. A will can also indicate whether a trust should exist after the death. A trust can be created during the owner's lifetime or after their death through a testamentary trust. Probate is a legal process that determines the authenticity of a will. Probate is the first step in administering an estate and distributing assets to beneficiaries. The custodian must present the will to either the probate court or the executor within 30 days after the death of the testator. The probate procedure is a court-supervised process in which the validity of the will left behind can be proven valid and accepted by the court as the last testament of the deceased. The executor is officially appointed by the court. This gives the executor legal authority to act for the deceased.

Should I use Life Insurance in Estate Planning?

Life insurance can be used to pay taxes and expenses and for retirement planning. If enough insurance proceeds are available, and policies are properly designed, income tax on deemed dispositions can be paid without resorting to the sale of assets. The income tax is generally not applicable to life insurance proceeds that are paid out to beneficiaries following the death of an insured. Estate planning should be done as soon as possible. The estate plan should change as life changes and new goals are set. Poor estate planning can lead to financial hardships for loved ones (estate taxes may run as high as 40%), so it is important that a will be created, even if there are not many assets.

Is Estate Planning Only for the Wealthy?

Estate planning is not only for those with high net worth. This is false. Estate planning is something that anyone can use. Estate planning allows individuals to make decisions about their wishes before and after death. Contrary to popular belief, estate planning goes beyond managing assets and liabilities. Estate planning can answer questions about guardianship and pets of minor children, how to handle your funeral, and which charities you wish to support after your death.

Can estate plans protect beneficiaries?

Estate planning used to be something only the wealthy needed. Many middle-class families must plan for what happens to their breadwinner or breadwinners. You don't need to be super rich to make a living in real estate or the stock market. Both of these assets can produce assets you want to pass on to your heirs. Even if your second home is not the main residence, you will have no control over who gets it. This is because estate planning involves naming heirs to your assets, regardless of whether they are a summer home or stock portfolio. An estate plan is essential to ensure that your assets are distributed in a fair and equitable manner. This can be costly, time-consuming, expensive, and even ugly. A court won't be able to determine which sibling is responsible or who shouldn't have cash access. The courts will not automatically decide that the spouse who survives gets everything.

Can estate plans lessen family problems?

We have all heard horror stories. The war begins when someone with money loses their family. One sibling might think they are better than the other, while another sibling might think they are more important than the other. Another sibling could think they should have financial responsibility even though they are notorious for piling up debt. These arguments can become heated and lead to family members being pitted against each other. Another reason to have an estate plan is to stop fights from starting is why it is so important. You will be able to decide who will manage your assets and finances if you are mentally incapacitated. This will help you avoid family conflict and ensure that your assets are managed in the best possible way. You can also use it to make individual plans if you need them. For example, to arrange for a child who has health issues or to establish a trust for someone who may be better off not inheriting a lump amount. You can give more to the parent who cared for you most in your final years, or less to the person whose education was extensive. However, you will be able to pay less for their siblings. You must think about how to split your estate equally. An estate plan is essential if you have had more than one spouse or children from multiple families.

What happens if I pass away without an estate plan?

Individually owned property is transferred to the New York laws on intestacy if a New York resident dies without leaving a will. This statute creates a will to protect those who don’t already have one. These are the rules. First, individual property is not the same as a form of ownership that gives no direction to who will inherit the property when you die. Most property is owned by an individual. However, certain property that can be used to determine who will inherit the property upon your death is not considered individual property and instead goes to the designated person. These types of property do not belong to you and will not pass to you according to your will or the laws of intestacy. Your relationship with them, whether biologically or adopt-in, will determine who is entitled to your assets. The law doesn't apply to friends, family, or lovers. It is important to make a will, or to give the gift in your lifetime, if you wish to leave a gift to someone who doesn't have the right to inherit the property. This is also known as the order of inheritance, which is how people inherit from you if your will is not created.

How long does probate take in New York state?

The length of probate in New York depends on many factors. The most important thing is the estate value of your loved ones. The probate process takes at least seven months if the estate has a value of more than $50,000, or includes real property that is solely in the individual's name. If the estate's value is less than $50,000 or if there is joint ownership of real estate, you can opt for faster probate. It is called voluntary administration and requires only one court filing. After that, a judge will issue certificates for each asset that will be transferred to its beneficiary.

How can I contact Sishodia PLLC?

You can call our Manhattan office at (833) 616-4646. You can also send us an email at natalia@sishodialaw.com. Another way is to fill up the contact form on our website at https://sishodia.com/contact-us/

Last updated on January 13, 2025

5 Ways to Incorporate Estate Planning Into Your 2025 New Year’s Resolution

Surveys revealed that the top New Year’s resolutions for 2025 include exercising more, losing weight, saving more money, improving diet plans, and pursuing a new career goal. Did you notice a common theme among all of these resolutions?

Most of them center around bettering our own, not our family’s well-being.

If you’re hoping to make a New Year’s resolution that will benefit your loved ones this year, consider incorporating estate planning into your resolution goals. Even if you don’t think you have a lot of assets, it’s still important to have a plan in place to make things easier for your loved ones. Estate planning can also help you skip the probate process and minimize the amount of taxes that your beneficiaries may have to pay on your estate.

So, don’t hesitate – start estate planning today and make it a part of your New Year’s resolution for 2025. At Sishodia PLLC, our experienced New York estate planning attorneys can help you get started and guide you through the process to ensure that your wishes are legally binding and your loved ones are taken care of. Contact us at (833) 616-4646 to learn more and begin planning for the future. Read on to learn how to make estate planning your 2025 New Year’s resolution.

1. Resolve to Make a List of Your Valuables and Assets

When was the last time you made a list of all your valuables and assets? How long has it been since you took a hard look at the debts you owe and the value of your property?

In 2025, resolve to create a list of your valuables, assets, and liabilities. Consider getting each item appraised so you have a clear idea of what everything is worth. This crucial first step will make all your future estate planning much easier.

2. Make it a Priority to Research Your Options

When considering your final plans, many people assume all they need to do is verbalize their wishes to their loved ones. While it can be difficult to talk about death, sadly, just saying what you want is not enough. A verbal arrangement is not legally binding and it’s hard to uphold. All it takes is one unhappy relative to send your estate to court and your assets to relatives you didn’t intend.

To avoid this, research your estate planning options. Creating a will is a good idea because it lists your wishes in a legally binding document. Trusts are also a very effective means to disperse your assets, property, and money, although they can be more complicated.

Make sure to add ‘research’ to your New Year’s resolution for 2025. Do your research and you’ll be in a much better position to protect your loved ones going into the new year.

3. Consider Your Wants and Needs

Once you know your options, you need to consider your end-of-life wants and needs. How do you want your will or trust plans to work? What would your dependents need to remain secure if you suddenly passed?

Take some time to reflect on these important topics and thoughtfully jot down your priorities, ensuring that your wishes align with the needs of your loved ones and that every detail is carefully considered.

4. Talk to Your Loved Ones

As you go through this process, you may realize that you need some input from your loved ones. Don’t be afraid to broach these difficult topics with them before you finalize your plans. Consider what they would need and what they’d want in the event you passed on. Listen to their concerns.

If you intend to name one person as a trustee or person in charge of your estate, it’s crucial to discuss it with that person. Make sure they understand and accept the responsibilities associated with the role of trustee. You also need to make sure they’d be comfortable with managing potential conflict.

5. Commit to Speaking With an Estate Attorney in 2025

Finally, commit to speaking with an attorney in 2025. A good estate attorney will help you formalize and legalize all your final wishes. They’ll help ensure that your wishes are well-known and legally binding before you pass, which will also give both you and your loved ones greater peace of mind.

Steps	Details
List Valuables and Assets	Inventory assets, liabilities, and appraise items for accurate estate planning.
Research Options	Explore wills, trusts, and other tools to legally document your wishes.
Define Wants and Needs	Determine priorities and dependents’ needs for financial security.
Discuss with Loved Ones	Share plans, gather input, and ensure trustees accept responsibilities.
Consult an Estate Attorney	Formalize and legalize plans to secure your wishes and provide peace of mind.

Estate Planning Goals

One essential estate planning goal is to prepare for the unexpected, regardless of age. Starting early can ensure that your wishes are documented and that your loved ones are cared for in the event of an accident or tragedy.

Protecting your assets is another crucial aspect of estate planning. With a comprehensive plan in place, you can ensure that your valuable possessions are managed and distributed according to your preferences while avoiding the costly and time-consuming probate process. Additionally, estate planning can help you minimize estate taxes and protect your wealth for future generations.

Safeguarding your beneficiaries is also an essential goal of estate planning. By establishing a plan, you can protect your loved ones from external influences, creditor problems, and divorcing spouses. Most importantly, you can outline your loved ones’ care and protection in your customized documents.

By incorporating estate planning into your long-term goals, you can take a significant step toward safeguarding yourself and your loved ones in the future. A knowledgeable New York estate planning attorney may be able to help you develop a comprehensive plan that meets your unique needs and provides you with peace of mind. Contact Sishodia PLLC today at (833) 616-4646 to schedule a consultation and learn more about how we can help you with your estate planning needs.

Let’s Make Your Resolutions a Reality

If you’re like most Americans, then your New Year’s resolution goals most likely revolve around bettering yourself. After the uncertainty of the past few years, however, now is the time to resolve to protect your loved ones. One of the best things you could do to take care of your loved ones is to finalize your estate planning plans.

Having these plans in place ensures that your loved ones don’t have to worry about how to divide up your assets after you pass on. It gives them the space and time they’ll need to grieve your passing. In an era of multiple global pandemics and crises, there has never been a better time than now to get your estate plans in order.

Are you currently in the New York area? If so, then our skilled attorneys would love to help you create and meet your estate planning New Year’s Resolution goals for 2025. Leave your information on our contact form to get in touch.

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