When people hear the phrase “estate plan,” they may tend to think of it as being synonymous with simply writing a Last Will and Testament. However, if you rely on your Will alone for your estate plan, you could miss out on several important steps you should take to protect yourself and your loved ones from potential issues that may arise. But why exactly is a Will alone not enough for your estate plan?
- Your Will has its limits
- While there are many things your Will can potentially do when it comes to disposing of your property, it can have its limits. For example, a Will cannot generally include provisions related to certain classes of property, such as life insurance policies or retirement accounts. If you do not have separate documentation dealing with those issues, you could face significant problems during the probate process.
- Your Will cannot protect your assets
- Assets that you grant to your heirs through your Will are potentially subject to taxation, including estate taxes and gift taxes. Moreover, creditors may attempt to satisfy any outstanding debts you leave behind by suing your estate. There are ways of protecting against this, but a Will alone cannot protect you from these problems.
- You need a plan for incapacity
- An estate plan is not just for dealing with what happens when you pass away, it is also about what happens if you become incapacitated while you are still alive. In other words, you can make plans to protect your interests if you become severely ill or injured and can no longer handle your own affairs. However, a Will lacks the ability to handle these issues without additional documents in place.
- Your interests may be better served by other tools
- The fact of the matter is that a Will is only one way to transfer your property to your loved ones after you pass away. And in many cases, it is not the best way, as instruments like a Testamentary Trust may be better suited for your needs. However, the only way you will know that is if you speak to a lawyer with experience handling estate planning.
- A Will is only a part of a larger estate plan
- Ultimately, a Will is important, but it should only be considered a part of your larger estate plan. That is why you should make sure you contact an estate law attorney to work out what kind of estate plan might best suit your needs. That way, you can minimize the possibility of legal issues arising, and ensure your loved ones are cared for when you are no longer there to take care of them.
The elder law attorneys at David J. Lorber & Associates, PLLC will work with you to determine whether a guardianship might be necessary for your loved one, and help you to get a guardianship that will suit your needs. For comprehensive guardianship and elder law services in New York, call David J. Lorber & Associates, PLLC at (631) 750-0900 or contact us online to schedule a free consultation at our Setauket office.
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