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Who Can You Trust . . . With Your Trust?
When you set up a trust in New York or establish a power of attorney, you’ll need assistance from two parties: a Long Island estate planning attorney to help you prepare the trust, power of attorney or health care proxy and a trustee or personal agent you authorize to act on your behalf.
When you prepare a power of attorney for financial decisions or a health care proxy for medical decisions with the assistance of a Nassau County estate planning lawyer, that document gives your agent the authority to make the financial or medical decisions that safeguard your best interests and well-being.
When you set up a trust, you may act as the trustee (if you wish) for as long as you’re alive, but upon your death, the person you have named as your successor trustee assumes management of the trust. Selecting an agent or trustee may be your most important estate planning decision.
Should You Establish a Trust?
A trust is a legal and financial document that lets you select a trustee to manage your estate on behalf of your beneficiaries after your death. Your trust document specifies when and how your successor trustee will distribute your assets to your beneficiaries.
If you prepare a trust, your estate can avoid the probate process, and your trustee and beneficiaries will not have to deal with interference from a probate court. Probate is lengthy and can take a year or more. It’s also costly, and it can substantially reduce an estate’s value.
Should You Prepare a Power of Attorney?
Every adult in New York should consider having a power of attorney for financial matters and a health care proxy for medical matters. If you own a business, have a family, or if others rely on you, it is essential to have the appropriate legal documents in place.
If you become incapacitated and cannot make the decisions that must be made for you and your loved ones, a power of attorney and a health care proxy give your agents the authority to make those decisions for you and to protect your well-being and interests.
Who Should Be Your Power of Attorney Agent?
Most people name a spouse, adult child, or other family member to act as an agent or successor trustee. Others name someone who is not a family member to avoid family confrontations and tensions. Before you choose a power of attorney agent or a successor trustee, ask these questions:
- Is the person you are choosing responsible and financially independent?
- Is the person you are choosing on good terms with your family members?
- Does the person you are choosing have the time to take on the responsibility?
- Will the person you are choosing hire an accountant or attorney if necessary?
When you prepare a health care proxy or financial power of attorney, select an agent you trust to make your choices and manage your affairs if you are unable to. It should be someone you would entrust with your life because that’s exactly what you’ll be doing. Your agent should be:
- dedicated to your interests
- organized and good with details
- comfortable working with financial professionals or medical providers
Who Should Be Your Successor Trustee?
Your trustee may be a relative, friend, lawyer, or your bank’s trust department. The choice is yours. Most people choose a friend or family member to act as a trustee, but selecting an unbiased third-party trustee – like a bank or an attorney – has several benefits.
Professional trustees are not affected by your family’s dynamics and can objectively manage your trust in the best interests of the beneficiaries. If the trustee is a bank, the bank will have abundant experience managing trusts and dealing with any issues or obstacles that may arise.
If you select a professional trustee, bring up any questions or concerns you may have about the trust administration process. Feel free to ask questions about tax implications and other issues.
What if Your Agent or Trustee Cannot Serve?
You may name the same party or different parties to act as your successor trustee, health care proxy and financial power of attorney agent. You must also name an alternate successor trustee and alternate agents for your power of attorney and healthcare proxy.
You need to name alternates because, over time, events may happen that affect the parties you’ve named as your trustee and agent. For instance, your selected trustee or agent may:
- pass away before or soon after your death
- become injured or ill in a way that makes fulfilling the duties impossible
- marry or take on other responsibilities that make fulfilling the duties difficult
- become mentally incapable of fulfilling the duties
- relocate across or outside the U.S.
- decide that he or she is unwilling to serve as a trustee or agent
Do You Have the Estate Plan You Need?
Estate planning is imperative for business owners, families, and anyone who wants to provide for loved ones. If you are age 18 or older and own anything of value or have children, you should have an estate plan in place, but there is no one-size-fits-all plan. Every estate plan is unique.
Estate planning is more than writing a will. In New York, an effective plan requires an experienced Long Island estate planning attorney who will help you with the creation of the necessary legal and financial documents.
Effective estate planning means making informed choices to ensure that your wishes are carried out – with minimal legal interference – after you pass away or if you become incapacitated.
Who Should Prepare Your Estate Planning Documents?
Davidov Law Group provides estate planning services to our clients on Long Island and throughout New York. A Nassau County estate planning lawyer at Davidov Law Group will address your concerns and prepare the estate plan that’s right for you and your family.
Our award-winning attorneys offer a full range of estate planning services. You can begin planning your estate now or learn more about the services we offer by promptly contacting Davidov Law Group at 516-253-1366 to schedule a free consultation with no obligation.
