Common Mistakes To Avoid In Estate Planning For Elders
New York estate planning is, in most situations, a fairly complex endeavor, and the stakes are high. You need the right Westchester County attorney to ensure that your wishes are respected and your assets go to the people you wish to have them. It is crucial that you and your attorney avoid the most common mistakes often committed by people in similar situations – if you do not, it can mean problems with the distribution of your assets or, in some situations, even problems with your end-of-life care.
Mistakes Of Neglect
Some of the most common mistakes made in estate planning fall under the umbrella of unintentional – or in some cases, intentional – neglect of estate planning in the first place. It is not uncommon for many people to simply dislike the idea of making an estate plan in the first place – it may remind them of their mortality, or it may make them confront potential financial problems or obligations. Regardless, failing to have an estate plan by a certain point in life, or failing to assess the need for a comprehensive estate plan – as opposed to a simple will or trust – can cause issues down the line.
Another common ‘neglect’ mistake is to underestimate or fail to research potential issues like the cost of long-term Medicaid-based care, which can be pricey. Each state has its own Medicaid bureau, and each state establishes the asset and income limits one must meet in order to qualify for Medicaid. In New York in 2024, for example, a single applicant for nursing home-based Medicaid must have no more than $1,732 per month in income, and $30,182 in assets. If you do not meet these guidelines, you cannot simply divest yourself of your assets; it must be done procedurally, and an experienced attorney retained to help.
Mistakes of Fact
The other common type of estate planning error is mistakes of fact – that is, not ensuring that the facts on your estate planning documents are correct and comply with the law. If you have recently divorced, for example, you may decide not to make a new will because you still wish your former spouse to have assets. However, New York law immediately revokes any bequests or benefits conveyed upon your former spouse once your divorce is final. If your will goes into effect with these provisions still intact, the assets will pass to any surviving children, and then other relatives.
Perhaps the most serious for your beneficiaries is when a person planning their estate does not take potential tax obligations into account. A gift or a bequest to a beneficiary that comes with a tax liability is no gift at all – in extreme cases, the beneficiary may wind up selling the gift in order to pay off the taxes! The right attorney in New York can help you ensure that your gifts do not run afoul of state authorities or the Internal Revenue Service (IRS), ensuring that your assets can be retained and enjoyed after your passing.
Contact A Putnam County Estate Planning Attorney
No one wants to think about growing old, but estate planning is a rite of passage, and with the right Westchester County estate planning attorney, you can ensure that your loved ones have things by which to help remember you fondly. The firm of Meyer & Spencer, PC is here to help – call our office today at (845) 628-0009 to schedule a consultation.
Source:
medicaidplanningassistance.org/medicaid-eligibility-new-york/
