When to Start Estate Planning in New York

Health Status

None of us know whether disability or dementia is in our future. It is crucial to plan for the possibility of incapacity. For instance, an accident that causes injury, a terminal illness or declining health can lead to the need for nursing home care. Exorbitant nursing home costs can deplete assets to the point where the person must rely on Medicaid to pay for nursing home expenses.

In 2024, New York Medicaid rules allow an individual to retain $1,752 of income per month, but if that individual is in a nursing home, they are entitled to keep only a $50 per month allowance.

A properly drafted irrevocable Medicaid Asset Protection Trust can protect assets and provide significant tax benefits while enabling eligibility for Medicaid to cover the costs of long-term care.

Benefits of Early Estate Planning

One of the major benefits of early estate planning is ensuring your wishes are carried out. Careful planning allows you to provide for your loved ones’ financial security. Timely estate planning also permits the creation of a plan to minimize estate taxes and expenses and the risks associated with aging. Asset protection planning can keep assets from creditors and lawsuits and make them exempt from Medicaid’s reach.

Perhaps the greatest benefit of early estate planning is the peace of mind it provides for you and your family.

Risks of Procrastination

Waiting too long to begin estate planning increases the potential for disputes and family conflicts. Should you die unexpectedly with no estate plan in place, heirs may fight over who receives not only your monetary assets but valuables such as jewelry, art, and antiques.

You want your assets to pass to your chosen beneficiaries. Without a will, you have no control over asset distribution. Your assets will pass to your closest blood relatives as per New York’s laws of intestate succession, whether those are the people you want to inherit your estate.

Estate planning also enables tax planning. Without careful planning, your estate may face higher tax liabilities, leaving fewer financial assets to loved ones. Those tax liabilities may also mean assets must be sold to pay the tax; a situation that may have been avoided with good planning.

Tailoring Estate Planning to Individual Needs

Your estate plan is customized based on your personal circumstances. A consultation with an estate planning attorney includes a discussion about you, your family, your finances, and your estate planning goals.

At Pierro, Connor & Strauss, our motto is “Life Happens. Be Prepared.” By reviewing and updating your estate plan periodically, you can ensure that it reflects your wishes while protecting your assets. You’ll be prepared for whatever the future holds.