Estate Planning Basics
There’s a lot that goes into estate planning. From wills and trusts to various powers of attorney, every step of the estate planning process is intricately detailed. To learn about everything that’s involved in estate planning, your best decision would be to sit down with a seasoned tax professional—such as a CPA from DeFreitas and Minsky, LLP—who can explain everything you need to know about the decisions you need to make.
Wills
Your will is the official document that states your final wishes. It details how you want everything to be carried out when you’re no longer able to make decisions for yourself. In your will, you can name the executor of your estate, guardians for your children and their property, dictate how debts and taxes will be paid, and detail any other provisions you’d like to be made.
Trusts
A trust is a fiduciary agreement that appoints a trustee to hold assets on behalf of one or more beneficiaries. Trusts are often used as a means to minimize estate taxes. Trusts have flexible structures to allow individuals to control their wealth very specifically, designating when and to whom distributions may be made.
Health Care Directives
Also called a “living will” or “advance decision,” this is a legal document that specifies what should be done medically in the event that you’re no longer able to make decisions on your own. Your health care directive can authorize another individual to make decisions on your behalf when you’re incapacitated, called a “health care proxy.”
Durable Financial Power of Attorney
A document that names the individual you’ve chosen to make financial decisions for you when you become unable. This document can also designate when the terms go into effect; some couples have financial power of attorney documents that go into effect immediately so that they can make decisions for each other at any time. Alternatively, you can specify that your power of attorney cannot go into effect until you’ve been medically certified as incapacitated. Many states require that your financial power of attorney be specified as “durable,” otherwise it may become void if you become incapacitated.
Beneficiaries
You’ll have to name beneficiaries for a variety of things, including bank accounts, retirement plans, and life insurance policies. You can name one, two, or more people, a trust, a charity, or your estate as the beneficiary of your death benefits.
Life Insurance
This is a contract with an insurance company that states that in exchange for the premiums that you pay over a certain duration of time, the insurance company will provide a death benefit (in a lump-sum payment) to your beneficiaries upon your death.
Estate Taxes
These are complex and vary greatly depending on location and circumstance, so they’re best left to be discussed with an experienced tax professional. Call DeFreitas and Minsky, LLP today at (516) 746-6322 for more information.
Final Arrangements
You should draft a document that instructs how you’d like your final arrangements to be made. This includes whether you’d want your remains to be buried or cremated, where you would like the services to be performed, who you want your pallbearers to be if you choose to have them, and any other details of the handlings of your remains and the associated ceremonies. In addition, you can make arrangements to cover the cost of your funeral to relieve your loved ones of the financial burden during an already emotional time. You can set up a “payable-on-death” account through your bank that will immediately pay for your funeral and related expenses when necessary.
How to Manage Bills Better Than Ever Before
Balancing a checkbook is never easy, but it’s a skill anyone can learn. Our four personal financial planning strategies for success will teach you how to manage bills better. How to Manage Bills Better: 4 Strategies for Success Get Organized Establish a workspace...
How to Manage Bills Better Than Ever Before
Balancing a checkbook is never easy, but it’s a skill anyone can learn. Our four personal financial planning strategies for success will teach you how to manage bills better. How to Manage Bills Better: 4 Strategies for Success Get Organized Establish a workspace...
How to Build Credit in 5 Simple Steps
How to build credit is a not-so-simple question that every young person in America faces. An important factor in landing a job, renting an apartment and securing a loan, building credit doesn’t occur overnight. But your creditworthiness can be established over time if...
Get In Touch
Have a question? We have the answer. Feel free to contact us using our info below. We'll be in touch as soon as possible.
Office
Suite 500W
Jericho, NY 11753
Call Us
Email Us
Fax
Hours
Sat & Sun | Closed