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individual to act on your behalf in making nancial decisions and managing your nancial decisions and managing your nancial 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 certi ed 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. With- out a POA, your loved ones would have to bring a formal guardianship proceeding to exercise power over your nancial affairs in the event of incapacity. Guardianship proceedings are expensive and uncertain, and there is no guarantee that the outcome will be one 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 decision for yourself, or you may nd 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 testamentary document will serve many important pur- poses including providing for how your as- sets should be disposed of at your death, choosing duciaries to administer your es- tate (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 con ict 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 descendant will be split 50% to the surviving spouse and the children who have have survived the deceased
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 the trust for the children un- til they reach the age for the majority, and the property will then be distributed to the children.
The problems here are tow fold - rst, the serving parent will not have access to the funds in a time of nancial circumstances (unless the children give the funds up upon reaching the age of majority); and second, the children will receive the entirety of such funds immediately upon reaching the age of majority. Even if the children are adults, in the event there are any issues between the surviving parents and the children, the children may refuse their rights to inherit, and thereby deprive the surviving parent of nancial support in their hours of greatest need.
Another important purpose of a will is the ability to create trusts for the bene t of your loved ones. These trusts can protect your prospective heirs from fraud, misappropriation and waste. Additionally, in the event any prospective heirs of your estate are disabled, recipients of government bene ts of subdues, trusts can provide additional support and improve the lives of your loved ones without jeopardizing your bene ciary’s entitlement to those bene ts.
In New York State, any person over eighteen years of age and of sound mind may serve as executor of a descendant’s estate The executor is entitled to a statutory commission, payable on a sliding scale. The scale is as follows:
the executor
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