Key Considerations for an Estate Planning Conversation

Key Considerations for an Estate Planning Conversation

As a trust and estate attorney, you have the privilege of working with countless amounts of clients and assisting them with planning for their future.  Each client’s needs are different.  When meeting with clients for the first time, it is important to know and understand that not one shoe size fits all.  Further, it is important to understand that when meeting with an estate attorney for the first time, all questions matter and are deemed important when planning for your future.  As an estate attorney, some of the basic common questions asked during an initial consult are:

1. What key advice would you give during a client’s initial consultation? Everyone, at the very least, should have a Will.  This is the core foundation of most estate plans.  This is a document that advises of your final wishes and dictates how your assets should be distributed upon your death. This document may very well also appoint a guardian for any minor children.  Along with having a Will, it is also very important to consider a Health Care Proxy as well as a Power of Attorney (POA).
2.  What is a Power of Attorney and why would I need one? A Power of Attorney is a plan for disability.  What happens if you become sick and homebound? Who is going to go to the bank for you or file taxes for you?  These are some of the basic powers granted to an agent in New York State under a Power of Attorney.  When someone becomes an agent of POA, that person gains certain powers or duties in order to manage someone’s legal business and financial affairs. The powers granted can be broad or they can be limited. Some of the basic powers that exist for an agent under a power of attorney in New York state are as follows:
   Real Estate Transactions: An agent has the power to buy, sell, mortgage, and manage a principle’s real estate property.
   Banking: An agent on behalf of the principle has the power to withdraw and deposit from a principle’s account, write checks on behalf of the principle and manage bank accounts.
   Manage Investments: An agent on behalf of a principal can have the authority to buy, sell and manage stocks and bonds and other investments.

3. If I have a power of attorney, do I still need to have a Health Care Proxy? The simple answer is Yes. While a Power of Attorney is a plan for disability, a Health Care Proxy (HCP) allows for someone to specifically designate an agent to make medical decisions on your behalf if you become incapacitated and cannot make medical decisions for yourself or if you reach a point where you can no longer communicate with nurses or doctors on your own.  Having an HCP is also extremely useful with being able to express your medical wishes when you become incapacitated. It allows you to provide instructions to your agent which specifically specifies your medical wants and wishes when you are no longer able to carry out your own wishes.

This is not intended to be legal advice.  You should contact an attorney for advice regarding your specific situation.

Rachel Rosenwasser is an associate and practices estate planning and real estate law.  She can be reached by phone at 845-764-9656 and by email.