Estate Planning & Wills in New York State
Estate planning involves preparing for how a person's property is distributed after death. As part of estate planning preparation, New York allows people to use a last will and testament to distribute assets. A variety of laws and issues impact estate planning and wills, and anyone considering an estate planning strategy should talk to a qualified professional first.
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Terminology
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Estate planning typically uses unique and specific terminology. When someone dies, he or she is typically referred to as either the decedent or, if a will is left, the testator. The property that survives the decedent is referred to as the estate. This includes any kind of property, not just real estate.
Wills
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New York allows people to use last wills and testaments to determine how estate property gets distributed. Anyone can make a will as long as the person is at least 18 years old and of sound mind. The will must be made in writing and signed by the testator, as well as witnessed by two competent people.
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Intestacy
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When someone dies without a will in New York, the person is said to have died intestate. New York law provides for this situation under the terms of the state's intestate succession laws. These laws dictate how property is distributed in intestate cases and establish a hierarchy of beneficiaries based on a person's relationship to the testator. If a person dies without leaving behind a valid will, or if the will fails to account for certain property, the laws of intestate succession determine how the property gets distributed.
Taxation
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New York estates can be subject to a variety of tax concerns that affect how estate planners prepare to structure the estate before the owner dies. Tax laws change often, and though as of 2010 New York does not have an inheritance tax, there is an estate tax that applies to any estate valued at over one million dollars.
Time Frame
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People can plan ahead for estate issues, but once the person dies the New York probate code applies to their estate and the process that must be done through to distribute property. This process usually involves a court appointing an administrator to oversee the distribution of estate property. When the administrator is named in the will, this person is usually referred to as the executor. In any situation, the probate court has a limited role in the process, usually acting to determine if a will is valid and hearing any disputes related to the probate process.
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References
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