How to properly protect property and plan your inheritance

What is Estate Planning?
Estate Planning is a plan that allows you to distribute property and finances to specific heirs (usually children and grandchildren), protect property from creditors and achieve maximum tax benefits.

Why would a person leave a will or a trust?
It is best to "distribute" property during life (at any age and in any state of health) in order to save relatives from the unknown, the complicated and costly process of partition.
Will and trusts often avoid or minimize taxes. Very often laws require heirs to pay inheritance tax within nine months after death, if there is no prior distribution scheme. The process of dividing property in a court without a will (administration proceedings) can take a long time, which means that the heirs will have to spend on additional legal costs.
In addition, we all know very well how disputes over inheritance end: close people quarrel with each other and pay significant sums for litigation. All this happens because the person did not take care of the fate of his property in time and did not turn to a lawyer for qualified help.
Transfer of property without a will can lead to unpredictable consequences. For example, the court may assign an unknown guardian to your minor children. It is also possible that the inheritance will also be managed by an outsider whom you did not even know. There is no guarantee that this stranger will make the right decisions for your family.
 
Seven reasons to protect
your future
Many people think that creating a so-called Estate Plan is not for them. The Estate Plan is a plan of action to be taken in relation to you, your children and property. To protect yourself and your children from a number of problems and loss of property, we offer our readers useful advice on how to avoid this.
1. Loss of legal capacity
What if you can't make decisions for yourself? If you have a Power of Attorney, the person of your choice will become your guardian and guardian of your property. If you do not have a Power of Attorney, then a guardian will be selected and appointed by the court (this is a long and costly process).
2. Minor children
What will happen to your children if you die suddenly? Without a Will or Estate Plan, all decisions regarding them will be made by the court. If there is a will or Estate Plan, your children will be taken care of by a person whom you trust and have chosen in advance.
3. Death without a will
Who will inherit your property? Without a Will or Estate Plan, your estate will be allocated (and taxed) according to local laws. The inheritance will be divided among relatives, and even those of them whom you would not wish to help will receive a share. With a will or Estate Plan, only those people you specify in the documents will become heirs.
4. Mixed family
What if you married a second time to a woman with children and have children from your first marriage? Surely you would like your own children to be as protected as possible after your death. Therefore, take care of them in advance: draw up an Estate Plan and decide what your current spouse will inherit, what your own children will inherit, and what will be adopted.
5. Children receiving Disability Benefits
After you die without Estate Plan, children may be denied Medicaid and SSI payments. With the Estate Plan, you can foresee this and create a so-called Supplemental Needs Trust. It will allow your children to continue to receive government benefits. And such a Trust will allow you to apply for Medicaid yourself without a penalty period of five years for the transfer of property.
6. Preservation of property in the family
Without the Estate Plan, your son's spouse can legally appropriate all of your son's inherited property in the event of his death. In case of divorce, the inheritance will be divided in half between the former spouses. If you drew up an Estate Plan, then most likely you indicated that the inheritance will remain in the family and pass to your grandchildren and great-grandchildren. In this case, no one can destroy your family property.
7. Is a Will or Estate Plan required?
Without a Will or Estate Plan, the distribution of your property will be governed by state law and taxed. With a clear will and / or Estate Plan, you will save the heirs from a number of problems.


In order to protect your property on an individual basis and plan for the transfer of inheritance, you should discuss these options with a knowledgeable attorney.
Call the law office
Leonid Mikityansky
by phone (718) 256-3210