Page 28 - Example Guide

Power of Attorney
Equally important is the power of attorney or “POA”. The POA allows your choice of individual to act on your behalf in making financial decisions and managing your financial affairs in the event that you are unable to do so. A POA may be effective immediately upon its execution, or else “springing”, such that it will not be effective until you are certified to be incapacitated. The POA may be limited in its scope (i.e. giving authority to a certain family member to run your small business), or may give complete authority to the agent. Without a POA, your loved ones would have to bring a formal guardianship proceeding to exercise power over your financial affairs in the event of incapacity. Guardianship proceedings are expensive and uncertain, and there is no guarantee that the outcome will be that which you would have desired if you were able to speak for yourself. As with all aspects of estate planning, it is best to think of these issues and make the decisions for yourself, or you may find the state making them for you.
Last Will and Testament
The most important and ubiquitous document that is a necessary part of any estate plan is the last will and testament. This document will serve many important purposes, including providing for how your assets should be disposed of at your death, choosing fiduciaries to administer your estate (and any trusts created thereby), and selecting guardians for any minor children. In the absence of a last will and testament, the laws of intestacy of the State of New York will apply. This can lead to numerous problems. Perhaps the most frequent issue that arises in such a case is the conflict of a parent and child. Many couples expect or desire that their surviving spouse will inherit their entire estate. Without a will, however, the property of a decedent will be split 50% to the surviving spouse, and 50% to the children who have survived the deceased spouse. In the event those children are minors, the Surrogate’s Court will appoint a guardian an item for the children, and the property will be held in trust for the children until they reach the age of majority, and the property will then be distributed to the children.
Page 28 - M. A. Connell Funeral Home