LEGALLY SPEAKING
Zehava Schechter
Zehava Schechter

Ep 30: Monte Leeper

Ep 29: David W. Teeter, Esq.

Ep 26: Paul Bugoni, Esq.

Ep 28: Daniel A. Johnston, Esq.
ZEHAVA'S BLOG
Engage with us for legal insights on estate and real estate laws.
Legal Insights

Estate Planning Myths
MYTH #1: Estate planning is only for people with a high net worth.
If you own property and assets or have loved ones who depend upon you to provide for their income or care, you will have an estate when you die and need to make a plan while you are alive - regardless of your estate size. Estate planning is something everyone needs to engage in regardless of age, estate size, or marital status. If you have a bank account, investments, a car, home or other property—you will have an estate with assets upon death. More importantly, if you have a spouse, minor children, or other dependents, an estate plan is critical for protecting their interests and their future income needs. Why do you need advance directives?
· Protect those who depend on you and your income during their lifetime.
· Name guardians for minor children.
· Name the family members, loved ones, and organizations you wish to receive your property following your death.
· Transfer property to your heirs and any organizations you have named in your estate planning documents in a tax-efficient and expedient manner, with as few legal hurdles as possible.
· Manage tax exposure.
· Name your executor and trustee – the individual(s) or institution you appoint to act to administer your estate and distributing your property.
· Avoid probate, the court process for proving that a deceased person’s Will is valid and enforceable.
· Document the type of care you prefer to receive should you become ill or incapacitated during your lifetime, including any life-prolonging medical care you do or do not wish to receive.
· Express your wishes and preferences for funeral arrangements and how related expenses will be paid.
MYTH #2: Estate planning is only about distributing my assets after I am gone.
Incapacity planning helps you prepare for unexpected events at every stage of your life from naming a guardian for your minor children, to who will manage your affairs if you are no longer able to do so yourself, to the type of medical and end of life care you will you receive and who will oversee your care.
MYTH #3: A Will can oversee the distribution of all of my assets.
Certain assets may sit outside of your will. These include life insurance policies or qualified retirement accounts (401(k)s, IRAs, etc.) that have a beneficiary designation, as well as assets or accounts with a pay-on-death (POD) or a transfer-on-death (TOD) designation. These assets transfer directly to the named beneficiaries upon your death and are not subject to probate.
This is why it’s so important to review your account beneficiary designations annually or whenever changes in your life occur. For example, if you divorce and remarry and fail to update the beneficiary designation on your IRA account to your new spouse, your ex-spouse could receive those assets upon your death. Even if your Will and/or trust names your current spouse as the beneficiary or co-trustee, since these assets sit outside of your Will or a trust, they are not governed by those documents.
Estate Administration Myths
MYTH #1: There is no difference between administering an estate with or without a Will.
Truth: A Last Will and Testament (Will) insures that YOUR wishes are honored after your passing. If you do not leave a properly executed and drafted Will, the Surrogate (Judge) will decide based upon New York State law who receives your assets. Administering an estate without a Will is always much more expensive and takes much longer.
MYTH #2: A person’s death does not affect his/her Power of Attorney.
Truth: When a person dies, the Power of Attorney is no longer valid or effective. A Will (if it exists) then governs disposition and control of assets of the decedent – and only after the Surrogate’s Court reviews and probates (accepts) the Will - and appoints the Executor (fiduciary) of the estate. That takes a lot of time and it is not automatic.
MYTH #3: Fiduciaries and beneficiaries listed in a Will always get along.
Truth: When family members fight over money, as they often do, only the attorneys benefit. It is better to name onefiduciary and list specific instructions within the Will as to how assets are to be distributed.
MYTH #4: If I do not execute a Will, my spouse inherits all of my assets.
Truth: A legally married spouse of a decedent shares an intestate (no Will) estate with natural and adopted children of the decedent. If you have stepchildren or other unrelated persons whom you want to inherit from your estate, you must execute a Will. You can disinherit anyone except for a legally married spouse.
