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Money Management: Estate Planning

Managing your money from financial planning to retirement

Estate Planning

Estate Planning is not only for the uber rich! Estate Planning benefits us all.

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An estate plan is a collection of legal documents like wills, powers of attorney, and trusts. Other documents typically seen are assignments of beneficiaries, letters of intent and instruction, and healthcare proxies. These documents outline what happens to your assets after you die or become incapacitated. Without an estate plan, the U.S. Government will determine what to do with your assets. This process, known as “probate,” can take many years.  Some people can create an estate plan with minimal outside help. Others may wish to consult expert advisors like attorneys, financial planners, or accountants.

For more information about End of Life planning check out Financial Literacy, Planning for the Future: Insurance Strategies & Estate Planning to Protect your Family

Taking Control of Your Finances After a Death

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Types of Documents to Prepare in Your Estate

Wills
Every will has an executor, a representative responsible for managing your estate after your death. The executor is legally responsible for executing the deceased's wishes through the probate phase.

Trusts
Like a will, a trust is a written document, but there are many different types of trusts that work in different ways. For example, a living trust operates when you are still alive and a testamentary trust is one you create as part of your will and will only start once you are deceased. To learn more about different types of trusts and who are the parties involved in making a trust, one great resource is the New York City Bar.

Power of Attorney
This is a legal document that allows another person to make legal decisions about your property, finances or health care in case you are unable to do so (e.g you become disabled.)

Healthcare Proxy
This is the person who has authority to make medical decisions if you are incapacitated. 

Assignment of Beneficiaries
It is important to know that minors cannot take control of assets. Either their legal guardians can take charge or you can put your assets in a trust for them to collect when they are 18 or 21. Beneficiaries named in your 401(k) or life insurance plan may differ from your will. Whoever is named as beneficiary on these documents override what is written in the will.

Letter of Intent or Letter of Instruction
This is a document to leave with your beneficiary or attorney containing details that might not be in your will. Including: your children's personal details (their social security numbers, place of birth, etc.), what happens if you become disabled or mentally incapacitated, your banking information, how your assets should be divided, passwords for all your email and social media, the location of important documents like your birth certificate, beneficiaries for insurance and 401(k)s, charity for donations, pet care, contact information for creditors, insurance providers, etc, and lastly your funeral wishes.

The library provides information and materials pertaining to End of Life planning that are informational only. If you have legal questions reach out to a legal professional.

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Protect your Treasure offers end-of-life and estate administration legal services. This includes assistance and advice in preparing petitions and understanding Surrogate’s Court or Supreme Court processes with the goal of preserving family and community wealth for future generations.