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choosing fiduciaries to administer government benefits of subsidies,
your estate (and any trusts created trusts can provide additional support
thereby), and selecting guardians for and improve the lives of your loved
any minor children. Absent a last will ones without jeopardizing your
and testament, the laws of intestacy beneficiary’s’ entitlement to those
of the State of New York will apply. benefits.
This can lead to numerous problems.
Perhaps the most frequent issue that
arises in such a case is the conflict The Executor
of a parent and child. Many couples In New York State, any person over
expect or desire that their surviving eighteen years of age and of sound
spouse inherit their entire estate. mind may serve as executor of a
Without a will, however, the property decedent’s estate. The executor is
of a decedent will be split 50% to entitled to a statutory commission,
the surviving spouse, and 50% to payable on a sliding scale. The scale
the children who have survived the is as follows:
deceased spouse. In the event those
children are minors, the Surrogate’s 5% of the first $100,000.00
Court will appoint a guardian an item 4% of the next $200,000.00
for the children, and the property will 3% of the next $700,000.00
2.5% of the next $4,000,000.00
The Basic Estate be effective immediately upon its be held in trust for the children until
execution, or else “springing”, such they reach the age of majority, and 2% of all monies in excess of
Documents that it will not be effective until you the property will then be distributed $5,000,000.00
are certified to be incapacitated. The to the child.
Healthcare Proxy POA may be limited in its scope (i.e. As you can see, even a modest estate
A Healthcare Proxy is an important giving authority to a certain family The problems here are two fold - will yield a substantial commission
legal instrument which sets forth the member to run your small business), first, the surviving parent will not for the nominated executor. Your
person or persons who you would like or may give complete authority to have access to the funds in a time executor will be in charge of collecting
to make healthcare decisions on your the agent. Without a POA, your loved of uncertain financial circumstances your assets, discharging your debts,
behalf in the event of your incapacity. ones would have to bring a formal (unless the children give the funds up and distributing your assets as per
Absent such an instrument, your guardianship proceeding to exercise upon reaching the age of majority); the terms of your will. As such, the
healthcare provider may not have power over your financial affairs in and second, the children will receive job is very important, and should be
the proper guidance as to who you the event of incapacity. Guardianship the entirety of such funds immediately given to someone who is responsible,
would trust to make these important proceedings are expensive and upon reaching the age of majority. trustworthy, and meticulous in their
decisions, or information how to uncertain, and there is no guarantee Even if the children are adults, in the record keeping.
contact the person who you would that the outcome will be that which event there are any issues between
designate. By preparing a healthcare you would have desired if you were the surviving parent and the children, If you have been nominated as
proxy, you will assist your physicians able to speak for yourself. As with all the children may refuse to waive their the executor of a friend or family
and nurses in providing the care that aspects of estate planning, it is best rights to inherit, and thereby deprive member’s estate, be mindful in your
you would want to receive if you were to think of these issues and make the the surviving parent of financial duties, and keep excellent records
able to speak for yourself. decisions for yourself, or you may find support in their hours of greatest of all expenditures made on behalf
the state making them for you. need. of the estate. By doing so, you will

Power of Attorney honor the legacy of your loved one,
assist their heirs in their time of need,
Equally important is the power of Last Will and Testament Another important purpose of a will
attorney or “POA”. The POA allows The most important and ubiquitous is the ability to create trusts for the and protect yourself from potential
your choice of individual to acts document that is necessary part of benefit of your loved ones. These liability.
on your behalf in making financial any estate plan is the last will and trusts can protect your prospective
decisions and managing your testament. This document will serve heirs from fraud, misappropriation Trusts
financial affairs in the event that many important purposes, including and waste. Additionally, in the There are dozens of varieties of
you are unable to do so. A POA may providing for how many your assets event any prospective heirs of your trusts, each of which can be used
should be disposed of at your death, estate are disabled, recipients of to accomplish different goals. For

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