Estate Planning for Young Adults

When it comes to estate planning, most people think it is about what happens to our stuff when we get older. Few people understand that it is also about what happens to ourselves while we are still young. 

As soon as we turn 18 we are considered legally responsible for our own decisions in terms of finances and health. This means that parents of young adults lose their legal authority over their child and are no longer able to access their health or education records or assist in managing their affairs.  For this reason, it is critical to hire an estate planning attorney. They can help you navigate the complex legal issues involved in estate planning and ensure that you have all the necessary documents in place, including advanced directives.

Having a plan in place with the help of a skilled New York estate planning lawyer can alleviate stress and confusion for both the young adult and their loved ones.

Having these directives in place allows them to: 

1. Designate a person of their choice (usually a parent or close relative) to be legally allowed to access medical and education records, and assist with health and financial decisions in case of unexpected events or incapacity. 
2. Provide guidance to healthcare providers and family members about the young adult’s treatment preferences and who they would like to make decisions on their behalf. This ensures that their wishes and preferences regarding financial, medical care, and end-of-life decisions are respected.

WHAT IS INCLUDED IN THIS SET OF DOCUMENTS? 

There are four documents we include in our Advanced directives packets:

• Power of Attorney: for financial and legal decisions 
• Health Care Directives: for health care decisions
• FERPA authorization: which allows access to education records
• HIPPA release form: which allows access to medical records

Let’s take a deeper dive into each one

POWER OF ATTORNEY

Young adults may need powers of attorney to authorize someone they trust to make important financial or legal decisions on their behalf. Parents may encounter situations where their young adult children are unable to manage their affairs due to unexpected events, such as an accident or illness, or when they are traveling or away from home and need someone to act on their behalf. 

Powers of attorney can be durable or non-durable and can cover a range of decision-making authority, such as managing bank accounts, paying bills, signing contracts, and making medical decisions.

A power of attorney can help ensure that their financial and legal matters are taken care of according to their wishes, without the need for a court-appointed conservatorship or guardianship. Having a power of attorney in place can also prevent potential disputes among family members or other loved ones and provide peace of mind to both the young adult and their family.

MENTAL HEALTH POWER OF ATTORNEY

In New York, a mental health power of attorney is a legal document that allows an individual (referred to as the “principal”) to appoint a trusted agent to make mental health treatment decisions on their behalf in the event that they become unable to make decisions for themselves. This type of power of attorney is authorized by the Mental Hygiene Law in New York State.

A mental health power of attorney can be particularly important for individuals who have a history of mental health issues and want to ensure that their wishes regarding their mental health treatment are followed. The agent appointed in the power of attorney document can make decisions about the principal’s mental health treatment, including consent to or refusal of treatment, and decisions about hospitalization, medication, and therapy.

It’s important to note that a mental health power of attorney only applies to mental health, for general Medical Care you need the document up next.

Type of Power of Attorney	Description
General Power of Attorney	Authorizes someone (agent) to make financial and legal decisions on behalf of the individual (principal). Can cover managing bank accounts, paying bills, signing contracts, and making medical decisions. Can be durable (remains valid even if the principal becomes incapacitated) or non-durable.
Mental Health Power of Attorney	Specific to mental health treatment decisions. Allows the appointment of an agent to make mental health treatment decisions on behalf of the principal if they become unable to decide for themselves. Covers consent or refusal of treatment, hospitalization, medication, and therapy. Authorized by Mental Hygiene Law in New York State.

Health Care Proxy for College Students

Health care proxy for college students is an essential legal tool that allows a designated individual to make medical decisions for the student in case they’re unable to do so due to severe injuries or mental health issues. Upon turning 18, students legally become adults and parents lose the legal right to make healthcare decisions for them. This is where a health care proxy comes into play.

A health care proxy grants parents the right to access their child’s medical records and make informed decisions about their treatment, based on the child’s wishes and available medical facts. This ensures that parents can still look out for their child’s health when they’re away at college.

The risk of accidents or sudden illness that could incapacitate the student and leave them unable to make health care decisions is always present. A health care proxy is a proactive measure to prevent such situations from leading to confusion or legal hurdles.

The benefits of having a health care proxy for college students are numerous. The person chosen by the student gets to decide on treatments, ensuring that their wishes are carried out accurately. It also helps prevent unnecessary treatments that may not align with the student’s best interests. Most importantly, it helps avoid confusion and legal complications in critical situations. A health care proxy is a wise investment in a student’s health and well-being while away at college.

HEALTH CARE DIRECTIVES & HIPPA RELEASE

Health Care Directives (also known as a durable power of attorney for health care) provide a set of instructions for family and medical professionals to follow in the event of a medical emergency. A healthcare proxy should be familiar with their values and wishes, and will help plan for situations that cannot be foreseen, such as a serious car accident or stroke.

FERPA RELEASE

As a general rule, it is a good idea for college students to sign a FERPA release, as it allows their parents or legal guardians to access their academic records and other educational information. The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records, but it also allows for the release of those records to parents or legal guardians of dependent students under certain circumstances.

New York estate planning attorney

By signing a FERPA release, a college student can authorize their parents or legal guardians to access their academic records, including grades, transcripts, and financial aid information. This can be helpful for parents who want to stay informed about their child’s academic progress and provide support when necessary. 

Now that we have talked about what these documents do and why they are important, let’s discuss how to set them up! 

Because all 18-year-olds are considered legal adults, the decision to sign these Advance Directives should be made in collaboration with their parents or legal guardians and an estate planning attorney.  While some documents you may obtain on your own such as the HIPPA release, the Financial Power of Attorney in particular is a powerful document that should be properly prepared by an attorney. This ensures that the documents will work as intended and your attorney can also provide counsel on how to use them correctly. Creating advance directives is an important part of planning for the future, if you are ready to get started make sure you contact us today.

ESTATE PLANNING FOR YOUNG PROFESSIONALS

Many young professionals neglect estate planning, since they have few assets, are single, and in good health. However, estate planning is just as necessary for a young professional as it is for older, rich, and married individuals. 

One of the critical aspects of estate planning is creating a power of attorney. This document authorizes someone to act on your behalf in financial and medical situations if you become incapacitated.  With the power of attorney, should the unexpected happen, you can avoid guardianship, which can be expensive and time-consuming. 

Another important estate planning tool is an advanced directive for healthcare.  If you have set up an advanced directive, you will appoint a healthcare proxy to make medical decisions for you should you be unable to make them yourself. This document also enables you to specify your preferences for end-of-life care and organ donation, which can alleviate the burden on your family. 

Creating a will or trust is also essential in estate planning. Without a plan, the law determines the distribution of your assets. Having a will allows you to decide on the allocation of your assets, which also involves designating a legal guardian for your underage children. In addition, a trust can help you avoid the probate procedure and make certain that your assets are distributed according to your preferences. 

If you’re a young professional looking to secure your future and protect your assets, consider working with a skilled New York estate planning lawyer. At New York Legacy Lawyers, our team of experienced estate planning attorneys may be able to help you create a comprehensive plan that addresses your unique needs and goals. Contact us at (718) 713-8080 to learn more about how we can help. 

https://yanafeldmanlaw.com/estate-planning-for-young-adults/
from New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/estate-planning-for-young-adults/

How Does a Trust Work?

Trusts are valuable estate planning tools if you want to ensure your children or other relatives receive their share of your estate. However, choosing whether to center your estate plan on a trust or a will can be tricky. Trusts can be independent from a last will and testament but often work hand-in-hand with them.

Often, trusts are used to ensure that children or grandchildren have the funds they need to go to college, or to fund a local charity, provide a down payment on a business or home, or even to provide a safety net for your assets as you age.  And this is not nearly all the ways a trust can be used.  Trusts are incredibly versatile financial tools that will offer long-term benefits to those who receive them. Consulting an experienced Brooklyn trust planning lawyer can help shed more light on how trusts can be a helpful addition to your estate plan. Our skilled Brooklyn estate planning attorneys at New York Legacy Lawyers are ready to help you understand how trusts can help in achieving your estate planning goals.

Here is a short article covering the nuts and bolts of how a trust works.

Placing Assets in a Trust

Brooklyn living trust lawyer

If you decide to put your assets in a trust, you will need to determine what type of trust to choose.

Living trusts are established during your lifetime. You will maintain control over the assets that are placed within the trust, allowing you to add or remove them as needed.

A testamentary trust is established after your death as part of your last will and will ensure that the chosen beneficiary receives their portion of your estate in the manner set within your will. They may receive a large part at the beginning followed by smaller amounts over time or when they receive a designated age.

There are, as mentioned earlier, many more types of trusts to consider.  Contact us today and we can go over what kinds of trust would meet your needs.  In the meantime, here’s some more information on trusts for you.

Type of Trust	Description
Living Trust	Established during your lifetime. Allows you to maintain control over the assets placed within the trust, with the flexibility to add or remove assets as needed. Provides access to assets as long as you are alive. Can be closed or modified if necessary.
Testamentary Trust	Established after your death as part of your last will. Ensures that chosen beneficiaries receive their portion of your estate according to the terms set within your will. Beneficiaries may receive funds in stages or upon reaching a designated age.

Maintaining Control of Your Assets

Living trusts allow you to maintain control of your assets. Because this type of trust is established during your lifetime, you have the option of continuing to use the assets or to set them aside and allow them to build interest.

As long as you are alive, you will have access to the assets held within the trust. You can add or remove things as needed. You can also close the trust if you change your mind and decide to alter how your money is dispenced, or if you need the funds for personal use.

Trusts as Part of a Will

Testamentary trusts allow you to provide for the needs of a loved one in a structured and secure manner. Trusts can be set up in a variety of ways, depending on the situation. If you have young children or grandchildren, establishing a trust through your will ensures that their financial needs are taken care of after you have passed away. Your testamentary trust may include securing their care and meeting their needs if they are a minor.

One example of how a testamentary trust might be used: establishing a college fund that will enable someone to afford for their college and living expenses.

Taking Care of Those You Love

Trusts are a great way to secure the future of your loved ones. For parents with young children, creating a trust through their last will enables them to make sure all of the expenses of taking care of their minor children are taken care of, allowing the children to live as full a life as possible.

What is the Name of the Trust?

A trust can be used by an individual to hold assets for the advantage of another. Because a trust gives people more discretion over how their assets are managed and distributed, it is a crucial estate planning tool. By creating a trust, grantors can make sure that even after they pass away, their assets are used to benefit their loved ones in the way they wish. Additionally, trusts can aid in tax planning and asset protection to prevent potential problems such as lawsuits, bankruptcy, or other creditor actions from happening.

There are numerous things to consider while naming a trust. It is preferable to refrain from using names that might be mistaken for those of already-existing entities or individuals. Clarity may be improved by descriptive names, particularly if the trust has a clear objective or goal. Think about how long the trust might last and whether the name you select will still have value in the future.

A knowledgeable estate planning attorney should be consulted if you are thinking about creating a trust. A lawyer can assist you in creating a trust that satisfies your unique requirements and objectives and in understanding your possibilities. Additionally, lawyers can offer advice on trust naming and guarantee that the trust conforms with all relevant legal requirements.

Establishing a trust is a critical component of estate planning. Working with an estate planning attorney can help you set up your trust properly and guarantee that your assets are managed and distributed in line with your preferences. If you require assistance with estate planning, don’t be hesitant to consult a qualified estate planning attorney.

What Happens When One Co-Trustee Dies

When a co-trustee passes away in the state of New York, the overall effectiveness of the estate plan does not immediately cease. Rather, the legal responsibilities and duties that were previously shared amongst the co-trustees typically transition to any remaining co-trustees or to a successor trustee, if one has been specifically named in the trust agreement.

The surviving co-trustee(s) in such scenarios is entrusted with the full control and management of the trust’s administration. This ensures that the trust continues to operate smoothly without significant disruption. They will effectively manage all trust assets, make distributions as necessary, and handle any other administrative tasks that were once the responsibility of the deceased co-trustee.

In situations where the trust document does not designate a successor trustee, or in the event that all co-trustees have passed away, the probate court may step in to appoint a new trustee. This is done to ensure that the trust does not become leaderless, as this could lead to mismanagement and eventual erosion of the trust assets.

It’s important to note that this transition process may not always be straightforward. The language of the trust document and the specifics of the situation can introduce complexities that require careful navigation and understanding. Therefore, it is always advisable to engage an experienced New York trust planning attorney when dealing with the death of a co-trustee.

Call Yana Feldman & Associates if You Want to Learn More!

If you have questions about establishing a trust (either living or testamentary), contact Yana Feldman & Associates today!

We have over 15 years of experience supporting families like yours.  And we understand how important it is to take care of your family.

Trusts are just one of many types of financial resources you can use to secure the future of your loved ones. It’s essential that you work with an attorney who specializes in this type of law.

Contact and schedule a consultation today.

https://yanafeldmanlaw.com/how-does-a-trust-work/
from New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/how-does-a-trust-work/

Executor vs Administrator: What Is the Difference in New York?

Estate planning in New York is a very involved process. When an individual passes away, their estate would have to pass through a court process before the beneficiaries can have access to their inheritance. Overseeing the inventory, verification, and division of the individual’s estate is not an easy undertaking.. Managing the estate through probate or administration is a very important role fulfilled by either an executor or an administrator. 

Being the executor or administrator of an estate is not a role to be taken lightly. Nonperformance of your duties can result in penalties. You may also be required to deal with will contests and creditors who make claims against the estate. A skilled estate planning lawyer can help you understand and assist you in performing your duties. Our experienced New York estate planning attorneys at New York Legacy Lawyers are experienced in assisting executors and administrators through the often complicated probate process. To learn more about how we can help, contact our office today at (718) 713-8080 or fill out our online form.

What Is an Executor vs. an Administrator?

In New York, when someone passes away (sometimes called a decedent) and leaves behind an estate, the matter of managing their assets and liabilities, paying off creditors, and distributing what’s left to the beneficiaries is not handled by the court directly. Instead, it is up to an executor or an administrator to oversee this process.

An Executor is a person or entity that a decedent names in their last will and testament.  It may be an individual, a trust company, or a bank.. Multiple executors can be appointed simultaneously and work together to administer the estate. 

When a person dies without a will (dying intestate) or if the person’s will did not declare an executor, the court will appoint an administrator to take over the role of managing the process of estate. New York law lists the order in which different relatives have priority to serve as administrator of an estate.

Executors and administrators are responsible for gathering and creating an inventory of the property a decedent left behind, paying off any taxes or other bills due, receiving and validating any claims from creditors, and distributing any remaining assets to the beneficiaries. 

What is the process of appointing an executor or administrator?

In order to be appointed, the nominated executor or the proposed administrator often hires an attorney to guide and advise them. First, a petition must be prepared that lays out the information about the decedent. This petition must list anyone who would be affected by the proceeding, such as the heirs or distributees of the decedent. These groups can include people who are going to inherit under the will, people who would have inherited if not for the will, and people who would have inherited under an older version of the will. There are also additional documents and affidavits that must be prepared and filed with the Surrogate’s Court.

Certain classes of people must either sign a Waiver and Consent if they do not object to the appointment of the nominated executor or proposed administrator. After notice has been issued to those entitled to inherit, the Surrogate’s Court will hear any complaints or contests to the appointment of the potential administrator or executor. If there are no objections, the heirs or distributees would have to submit a waiver indicating their consent to the appointment of the executor or administrator.

Executors are issued Letters Testamentary to indicate their authority while administrators receive Letters of Administration. The court can also issue official documents to the executor or administrator of an estate to help them in mustering the assets of the decedent.

Estate executors and administrators are entitled to be compensated for their work, the amount of which depends on the size of the estate. This is called a commission and is calculated based on a formula. However, some executors choose to forgo commissions, especially if they are a close friend or family member of the decedent. Banks or trust companies may actively seek compensation and may reject the role of executor if the size of the estate does not meet their requirements.

An executor needs to follow the wishes of the decedent as written in the will and the administrator must manage the estate according to New York’s intestacy laws. Both executors and administrators have a fiduciary duty to perform their roles properly. They are legally required to put the best interests of the estate over their own or risk having a complaint filed against them in the Surrogate’s Court. 

It’s important to remember that while executors and administrators can perform the same function, there are some key differences between the two.

Role	Appointment Process	Responsibilities
Executor	Named in the decedent’s last will and testament (Individual, trust company, or bank). Multiple executors can be appointed.	Gather and create an inventory of decedent’s property Pay off taxes and other bills due Receive and validate claims from creditors
Administrator	Appointed by the court when no will or executor is named. Follows New York law on priority of relatives. Prepares a petition and additional documents.	Distribute remaining assets to beneficiaries

Who is Eligible to be Appointed?

As mentioned, an executor is a person nominated under a will to oversee the management and distribution of the estate. Not just anyone can be appointed as an executor. New York law mandates the following requirements before a person can be accepted by the Surrogate’s Court as the executor of an estate:

• At least 18 years old
• Has not been declared incapacitated by the court
• No history of felony convictions (although there is some flexibility to this now)
• either a U.S. citizen or a non-U.S. citizen living in New York, unless you also name a coexecutor who is a resident of New York and the judge approves
  • Additional restrictions for those with a history of substance abuse, financial mismanagement, and fraud may also be applied

An administrator is usually appointed through a more complicated process. However, if the estate is valued at less than $50,000, the Surrogate’s Court may approve a simplified Voluntary Administration process. If the next of kin of the decedent cannot be established or is too distant, the Public Administrator of the relevant county will oversee the distribution of the estate.

In cases where the next of kin is interested in acting as administrator, they would need to provide the Surrogate’s Court with a Kinship Affidavit, also called an Affidavit of Heirship, determining their relationship with the decedent. They must also submit additional documentation to show their eligibility to be the estate’s administrator.

Being the executor or administrator of an estate is a significant responsibility. Even though an executor has been named in a person’s will they cannot be coerced into taking on the duty. The probate process can take months, even years. The management of the estate is also subject to additional scrutiny from the Surrogate’s Court which can make the process daunting.

New York State Executor Requirements

In New York State, an executor is a vital role assigned in a will to administer a decedent’s estate. The executor is tasked with implementing the will’s provisions, including collecting assets, paying debts and taxes, overseeing estate assets, and distributing remaining assets according to the will.

To serve as an executor in New York, one must meet several requirements. The person must be at least 18 years old, of sound mind, and have no felony record. Unlike many states, New York does permit out-of-state executors. However, New York judges hold the power to reject an executor request in a will for various reasons, including inappropriate behavior or inadequate language skills.

Executor compensation in New York is determined by the state and is equivalent to a percentage of the estate’s value. The commission structure for each executor is tiered, starting at 5% on the first $100,000 of the estate, then decreasing as the value of the estate increases.

In some instances, executors and administrators are required to purchase an executor bond in New York. This bond serves as a guarantee of the executor’s fiduciary responsibilities. Hence, when choosing an executor, consider factors like trustworthiness, responsibility, organizational skills, and diligence, as well as potential conflicts of interest among beneficiaries or between executors. The chosen executor should be capable of considering the estate’s overall interest.

Checks and Balances

Despite the fiduciary obligations executors and administrators have to the heirs and to the estate, there are still instances where mismanagement happens. To prevent this, the Surrogate’s Court can restrict the authority of administrators and executors when collecting or selling off assets and property.

Even if a will explicitly states that an executor does not have to pay a bond to act in their responsibility, the court can still impose the bond requirement if it judges that it is necessary. While a bond can be optional for executors, an administrator is usually required to submit a bond to act as insurance in case the administrator engages in ruinous activities that jeopardize the estate and to cover potential losses.

The Surrogate’s Court also hears any contests to the appointment of an executor or administrator. 

Whether you have been nominated as the executor or are planning to apply as the administrator for an estate, getting the help of an experienced New York probate attorney is beneficial. 

A skilled attorney can assist you in performing your duties, help you understand New York’s probate law, and keep updated with the legal processes involving the management of the decedent’s estate. 

Our team of estate planning attorneys at New York Legacy Lawyers, led by top-rated New York probate attorney Yana Feldman, has provided quality legal assistance to individuals maneuvering the probate process. We can assist you through your duties and responsibilities and help you facilitate the probate process as smoothly as possible. We can also represent and defend your rights from potential legal challenges. 

Schedule a consultation today with experienced New York probate attorney Yana Feldman. Contact New York Legacy Lawyers today at (718) 713-8080.

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from New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/executor-vs-administrator-what-is-the-difference-in-new-york/