One common misconception surrounding Estate Planning is that an Estate Plan can only be executed by older adults. This simply is not true. There are certain basic estate planning measures that should be taken as soon as a person reaches the age of 18 years.
Every adult should execute the Advanced Directives, which are the New York State Durable Power of Attorney and the Health Care Proxy. These documents allow a principal to appoint an agent to assist the principal with financial and legal matters (in the case of the Power of Attorney), and medical decision making (in the case of the Health Care Proxy). Without the Power of Attorney and the Health Care Proxy, no one, not even the person’s parents, would be legally authorized to step in and help in the event the person becomes incapacitated or otherwise unable to handle his or her own affairs.
Aside from the Advanced Directives, every adult person should consider executing a Last Will & Testament. At its most basic function, a Last Will directs where a person’s stuff goes after he or she passes away. But a Will can become more complicated (and essential) as a person begins to accomplish certain life events, like starting a family. With a Will, the creator, or testator, can provide for things like who he or she wishes to serve as the legal guardian of any minor children. And when it comes to providing for a minor child, the Will can direct that the testator’s assets be placed automatically in a trust established for the benefit of the child.
As a person gets older and accumulates more wealth, Estate Planning can focus on preserving assets. An Estate Plan can help reduce or eliminate estate tax liability through the execution of trusts and/or gifting plans. And if a person requires long-term care, an Estate Plan can help protect assets while allowing the person to gain eligibility for programs like Medicaid, which will pay for long-term care.
If you are over the age of 18, you should consider consulting with an experienced Estate Planning Attorney to see what planning options might be appropriate for you.
By Wayne R. Carrabus, Esq., CPA at Futterman Lanza, LLP with Offices in Smithtown, Bay Shore, Melville and Garden City, NY, and clients throughout metro New York. He concentrates his practice on Elder Law, Medicaid Planning, Medicaid Applications, Estate Planning, Probate and Estate Administration and Estate Taxes.