Estate planning is always important, no matter how well the markets are doing. According to NYC probate attorney Paul Johnson, when the economy goes south, however, putting together a living trust or will becomes even more imperative.
At the Law Offices of Paul Johnson in New York City, Johnson explains that estate planning is critical no matter how old a person is or how the economy is currently faring. When money for most people is tight, though, it becomes even more important for people to make it clear which relatives and loved ones are entitled to which possessions upon their death. When a will is put together properly, it will detail with complete certainty who is entitled to receive the proceeds from an estate. Johnson says a will should also provide directions as to how the estate is going to be carried out. Without a well-written will in place, courts will oftentimes dole out a person’s estate to his next of kin.
Unfortunately, Johnson says, that isn’t always what people want. Johnson uses the example of a former client who was estranged from his brother and wanted to make sure that his brother would not get his money if he died. If a person does not have a spouse, child, or living parents, then there is a good chance that a NYC probate court judge or attorney would give his estate to the next of kin, which would have been a sibling in this case. Therefore, the only way to avoid that outcome would be to have a will written up by an estate-planning attorney.
Johnson says that in most cases, a person’s next of kin is usually his spouse, his children, or his parents. Oftentimes, however, a person does not want his estate to be transferred to his parents if he dies. There are a number of reasons why this could be the case, such as if the parents were elderly and planning on passing on their own estate fairly shortly, or if they were already financially independent. In those instances, most people would agree that the money from the deceased person’s estate would be better off going to someone who is younger, like a child, a nephew, or niece. Putting together a will is the best, and oftentimes only, way to make sure that this happens.
As a probate attorney in NYC, Johnson says he also encourages clients to look into setting up trusts. Trusts can be used as instruments through a will, or a client can just have a trust made up as a way to avoid probate altogether. It should be noted, however, that probate is not typically as expensive or difficult in New York City as it is known for being elsewhere in the country. For people who live elsewhere in the country, putting together a will or living trust is oftentimes done as a way to avoid probate. In New York City, however, probate is non-negotiable. Working with an attorney like Johnson can make the process easier, though, since professionals who have worked within the system before can usually navigate much faster than novices.
Whether the economy is looking good or bad, and whether a person has kids and a spouse, or is living the bachelor lifestyle, Johnson says it is important to speak with an attorney to create an estate plan. Doing so is a smart move for anyone who has assets that he would like to protect.
This article is for informational purposes only. You should not rely on this article as a legal opinion on any specific facts or circumstances, and you should not act upon this information without seeking professional counsel. Neither publication of this article nor your receipt of this article create an attorney-client relationship.