Estate Planning for Young Families
Starting a family and welcoming a new human into the world is one of life’s most magical and gratifying moments. More down to earth is the need to go shopping for diapers, onesies, pacifiers, and all that other gear. That list should include a Last Will and Testament because as beautiful as life can be, it is also unpredictable.
A Last Will and Testament disposes of one’s property after death. If a person does not have a Will, New York State law dictates what happens to their property. Where a person dies leaving a spouse and children, the surviving spouse gets the first $50,000 in value. The remainder is divided equally between the surviving spouse and all of the children. This can result in a child owning an interest in a home or other real estate. This is problematic because the child is too young to enter into a contract to sell or otherwise deal with the real estate. In such cases, a court will appoint a guardian for the child, causing expense and taking time. This problem is eliminated when couples make Wills leaving all their property to the surviving spouse. But that needs to be done in a Will, that is not the law.
A Will is also the place where you appoint guardians to take care of your children should both parents pass away. You can also divide responsibilities so that the children will live with one person, but you choose another person ( a “Trustee”) to handle their money.
Another benefit to making a Will is that you can appoint an executor to manage your estate. When no one is appointed, it is an opportunity for relatives to fight about it. Unfortunately these fights are somewhat common, even when there is very little property to fight about.
Like most states, New York has very detailed requirements as to the form and content of Wills and the way they are to be signed. It is not something you should do at home. You should definitely seek professional assistance in making a Will.
A version of this article appeared in the September 10, 2024 edition of Chronogram Magazine online. Click here to read.
This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.
Gary Schuster is a Partner with the firm and practices Business Law, Estate Planning, and Arts & Entertainment. He can be reached by phone at 845-764-9656 and by email.