New York State Adopts Electronic Wills Act Starting in 2027
A few New York State laws were enacted by Governor Kathy Hochul right before December 31, 2025. One of the most notable new laws is the authorization of electronically signing Wills for New York State residents. Before deciding that this is the right approach for you, it’s important to be aware of the requirements. If you have questions about creating and signing a Will in New York, please consider scheduling a consultation with the experienced New York estate attorneys at Abelaj Law, P.C. by calling 212-328-9568.
Effect Date of New York Electronic Wills Act
The New York Electronic Wills Act was signed into law on December 12, 2025, and takes effect on June 10, 2027. Some provisions are based on existing law, such as the timing of witnesses signing the Will, and other provisions are newly created, such as required court filings.
The electronic Will must contain audit trail data, which likely means that an e-signing platform such as Adobe Sign, Docusign or a similar program must be used. The result is that the signers would not be able to insert a type-form “cursive” signature if there is not audit trail.
The witnesses must be domiciled in one of the fifty United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, any territory subject to the jurisdiction of the United States, or as part of a federally recognized Indian Tribe. In other words, the Will cannot be witnessed by an individual who is domiciled in another country.
Electronic Signing by Testator and Witnesses
Under current law, a testator may sign their Will, with or without the witnesses present, provided the testator declares to the witnesses, and the witnesses sign, the Will within 30 days after the Testator signs the Will. The Electronic Wills Act adopts this same approach to a Testator, and to the witnesses, who sign the Will in person or electronically. This is a two-pronged consideration.
First, the testator can sign the Will in person or electronically. Next, the witnesses can do the same thing, meaning they can witness the signing, or declaration of signing, either in person or electronically. In any of these combinations, provided the witnesses sign within 30 days of the testator’s signature, the Will is validly signed under the Electronic Wills Act.
Will May be Self-Proven Electronically
Under current law, Wills can be self-proven if the witnesses acknowledge in a signed writing within 30 days of signing, usually via a notarized affidavit, that they were witnesses to the Will. For most testators, this Affidavit is usually signed by the witnesses and notarized during the Will signing meeting. This important document is provided to the Surrogate’s Court when the Will is probated.
As background, if a Will does not include a self-proving affidavit, the original Will (and not a copy) must be provided to the witnesses after the decedent’s death at which time they will sign and notarize an affidavit after death providing that they were the witnesses to the Will. As you might imagine, this creates extensive cost and delay to the Estate as the witnesses must be located and the original Will must be presented to each witness, at which time the witness must arrange for a notary to notarize the affidavit.
The Electronic Wills Act anticipated this challenge and specifically provided that the Wills may be self-proven electronically as well. This will require that a notary also be present for the electronic signing of the Will.
Prompt Filing with Surrogate’s Court Required
Once the Will is fully executed by the testator and the witnesses, the law provides that the original document MUST be filed electronically with the local New York Surrogate’s Court within 30 days of execution. Failure to do this will automatically invalidate the Will. The Will may be filed by the testator or an authorized representative.
Testators have long had the ability to file their Wills prior to death. Under current law, if a testator executes a new Will after the prior one was filed, but the prior one was not removed from the Court before the testator’s death, the individuals in the prior Will who were adversely affected must receive notice and may have the right to object to the new Will. For this reason, many testators do not file their original Wills with the Court. They retain control over the final Will that is ultimately filed upon their death and probated.
The new law may result in many situations in which individuals have a right to object to a prior electronically filed Will if a new Will was executed and they were adversely affected in the new Will. In addition, both Wills would become public record at the time of death.
Revocation of Electronically Signed Will Filed in Surrogate’s Court
Removal by the testator or an authorized person of the electronically signed Will from the Surrogate’s Court will automatically revoke the Will. In addition, executing a new Will revoking the electronically signed Will or filing a new electronically signed Will with the Surrogate’s Court will revoke the Will on file.
Language required to be included in Will
An electronically signed Will MUST include the following language for it to be valid, in twelve-point font or larger, boldface and double-spaced:
CAUTION TO THE TESTATOR: YOUR WILL IS AN IMPORTANT DOCUMENT. AS TESTATOR, YOUR WILL SHOULD REFLECT YOUR FINAL WISHES. TO BE VALID, IT MUST BE SIGNED BY YOU OR ANOTHER INDIVIDUAL AUTHORIZED BY YOU AND WHO IS IN YOUR PHYSICAL PRESENCE AT THE TIME OF SIGNING. IT MUST ALSO BE SIGNED IN YOUR PHYSICAL OR ELECTRONIC PRESENCE BY AT LEAST TWO INDIVIDUALS, EACH OF WHOM IS A DOMICILIARY OF A STATE, AND EACH OF WHOM SIGNS THE WILL WITHIN A THIRTY DAY PERIOD AFTER WITNESSING YOU SIGN THE WILL OR ACKNOWLEDGE THAT YOU SIGNED IT.
WITHIN THIRTY DAYS AFTER THE ELECTRONIC WILL IS EXECUTED, IT MUST BE ELECTRONICALLY FILED WITH THE NEW YORK STATE UNIFIED COURT SYSTEM. YOU MAY REVOKE YOUR ELECTRONIC WILL AT ANY TIME. YOU MAY DO SO BY EXECUTING A SUBSEQUENT WILL OR SEPARATE WRITING CLEARLY INDICATING YOUR INTENT TO REVOKE ALL OR PART OF YOUR ELECTRONIC WILL, OR BY REQUESTING ITS REMOVAL FROM THE NEW YORK STATE UNIFIED COURT SYSTEM. ONCE YOU HAVE REMOVED YOUR ELECTRONIC WILL FROM THE NEW YORK STATE UNIFIED COURT SYSTEM, IT IS REVOKED.
Before Deciding to Electronically Sign Your New York State Will
The New York State Electronic Wills Act is a great step forward in meeting the digital reality in which we currently live. This will create options for testators who might be immobile or have difficulty in attending a live signing.
However, being aware of the logistical arrangement, filing requirements, and potential for adversely affected individuals to object to a Will may impact your decision on whether this is the ideal approach for you.
Talk with an Experienced Estate Planning Attorney
If you are considering estate planning, legal guidance may be beneficial. An experienced estate planning lawyer can make sure all documents are in order and help individuals determine the signing method that would best fit their needs. Consider visiting with the estate planning lawyers at Abelaj Law, P.C. at 212-328-9568 to learn more about how to determine whether electronically signing your Will is right for you.
How Individuals and Charities Can Benefit from Changes to Charitable Deductions Before and After OBBA
The One Big Beautiful Bill Act (“OBBA”) was signed into law on July 4, 2025, which includes many striking changes to charitable deductions that start on January 1, 2026. Donors and donees of charitable gifts must be aware of the new rules to maximize their philanthropic goals. Find out the impact the changes will have on donations and how donors and nonprofits can prepare and respond before and after the changes. If you have questions about charitable giving in New York, please consider scheduling a consultation with the experienced New York philanthropy attorneys at Abelaj Law, P.C. by calling 212-328-9568.
Good: Boost in Charitable Deductions
1) Individual taxpayers who take the standard deduction are allowed an additional charitable deduction of up to $1000 for single filers or up to $2000 for joint filers.
Recipient limitations: Donations to Donor Advised Funds (“DAF”), supporting organizations, or non-operating private foundations are not eligible for the standard charitable deduction.
2) Donations to charities that provide scholarships to K-12 students.
Deduction: Starting in 2027, nonrefundable credit of up to $1700 for gift of cash or marketable securities. Available to both standard and itemized filers, the credit will reduce the other charitable deductions allowed to the taxpayer.
Bad: Reduction in Charitable Deductions
1 – Taxpayers who itemize deductions will only be allowed to deduct charitable contributions exceeding of 0.5% of taxpayer’s AGI.
- For example, if a donor’s AGI is $500,000, they will be allowed to take a charitable deduction on the excess over $2,500. Donations must be to a 501(c)(3) organizations and deductions for gifts to DAFs, private foundations or supporting organizations are allowed.
2 – Corporations will only be allowed to deduct charitable gifts exceeding of 1% of taxable income up to a maximum of 10%.
- Impact to Matching Gifts Programs. Corporations either reduce or increase the number of available charities that may receive a matching gift. It will be a year or two until we see the outcome.
Take Action: Maximizing the Rules for Your Benefit
1) Standard Filers. Consider whether waiting until 2026 to make a charitable contribution will significantly improve your taxable income or if the result would be nominal as compared to the charity’s loss. Keep in mind that your favorite charities rely on your donations, and they may be more negatively impacted than you can imagine. If you skip the 2025 contribution, increase it in 2026.
2) Itemized Filers. Make your charitable contributions NOW before 12-31-2025 in order to receive the maximum charitable deduction. For 2026, make a larger contribution in one year to front-load the gifts that would have been made over several years (sometimes called “bunching gifts”). Bunching will allow you to receive a charitable deduction while providing the cumulative gift to the charity “in advance.”
3) Charities. Contact donors now to make contributions before 12-31-2025, expressing the benefits of receiving a full charitable deduction this year without being subject to the floor. Coordinate with your fundraising team to identify and segment donors who might fit into the standard deduction filing or the itemized filing.
- Identify donors who make smaller, annual gifts and tailor a fundraising message to highlight the benefit of charitable contributions starting in 2026 that were not previously available.
- For large recurring donors or those at the borderline of the 0.5% floor, communicate with them NOW Before 12-31-2025 and share the benefits of making a charitable contribution before December 31, 2025. For 2026, tailor fundraising messaging to the benefits of “bunching gifts” in one year.
4) Supporting Organizations and Private Foundations. Focus your fundraising efforts on itemized filers who can receive a charitable deduction when making large donations or bunching gifts. If you have a website, consider updating the donation page to provide information and direct the donor to discuss with their tax adviser.
Additional Limitations
- Deduction for cash donations to public charities is capped at 60% of AGI (30% of AGI for appreciated assets). OBBA made the 60% cap permanent.
- Carry-forward for 5 years is still allowed, subject to the same limitations.
Consult with a Philanthropy and Charity Attorney Today
Being aware of the tax changes is critical when making charitable gifts. Whether you are a donor or a donee; an individual giver or a charitable recipient, the new laws will impact your strategy to maximize tax benefits. Discussing the tax changes with a philanthropy attorney may ensure that you take steps to fit your philanthropic goals. If you want to learn more about philanthropy planning in New York, please consider scheduling a consultation with the Abelaj Law, P.C. by calling 212-328-9568 to discuss how we can assist you in this process, including developing policies and procedures to receive large donations in order to avoid jeopardizing tax-exempt status.
How Your Estate Planning Can Help Charities You Care About
Making a gift to a charitable organization is a meaningful and impactful decision – one that can benefit both the causes you care about and your financial and estate planning goals. While the decision of how and when to give is personal, it can play a significant role in shaping your legacy. Below are some common ways your estate plan can help support the charitable organizations you care you.
Common Ways of Giving to Charities
There are numerous ways to give to charity, both during life and after your death. The approach that works best for you will be unique to your needs, including the value of the intended gift, the type of asset being donated and your tax situation. It’s important to work with an attorney experienced in charitable estate planning to determine the approach that works best for you. The attorneys at Abelaj Law, P.C. have helped many individuals incorporate charitable planning in their estate legacy and we can assist you in this process. Contact us today to get started.
Testamentary Gifts in a Will or Trust
A common way to support a charitable organization in estate planning is through a bequest in a will a trust. This is also known as planned giving. A person can specify a dollar amount, percent of estate, or specific asset (such as stock or real estate) to a charity. There is no federal limit on the number of charitable bequests an estate plan can have, which can allow for a donor to support multiple organizations.
The bequest can be outright or have restrictions on how the funds are used. A Trust or endowment can include instructions on how the funds are to be used by the charity over a long period of time.
Name a Charity as Beneficiary
Charities can be named as beneficiaries of your retirement assets, annuities or insurance policies. This can allow the donor to support specific organizations while also reducing estate taxes. A benefit of this approach is that it avoids probate and allows the charity to receive the bequest promptly.
Create a Donor Advised Fund
While a Donor Advised Fund, commonly known as a “DAF”, is not technically part of an estate plan, it allows a donor to contribute assets during their lifetime, take an immediate tax deduction, and recommend grants to charities over time. Donors can contribute to the funds as frequently as they like and then recommend grants to charities at a later date. This approach works well for donors who would benefit from a large charitable deduction in one year without immediately having to choose a specific charity to receive the funds.
Charitable Remainder Trust
A charitable remainder trust (“CRT”) is an irrevocable trust that allows a person to donate assets to charity and draw annual income for life or for a specific time. A CRT can offer financial benefits such as allowing a donor to plan major donations to charities, allow a donor to defer income taxes on the sale of assets transferred to the trust, and may allow a donor a partial charitable deduction based on the value of the charitable interest in the trust.
How to Get Started
As you consider including charitable donations in your estate planning, start by reflecting on the types of charities you have supported in the past, the types of assets you have contributed, whether you want to make an unrestricted gift or include certain parameters, and when you want the charity to receive the gift.
Identify the Causes You Care About
Think about the issues or organizations that have had a meaningful impact on your life. These could be nonprofits you’ve supported in the past or causes that reflect your values. There are many organizations out there doing meaningful work that would appreciate your donation.
Review accounts and documents
Review your estate documents every 3-4 years to ensure these documents reflect your intentions. If there is a charity you want to add as part of your estate documents or want to look at more robust options to support causes you care about, reviewing your documents is a great way to start.
Talk With an Experienced Estate Planning Attorney
For many families considering charitable giving as part of their estate plan, legal guidance may be beneficial. An experienced estate planning lawyer can make sure all documents are in order and help families determine the types of charitable giving that would best fit their needs. Consider visiting with the estate planning lawyers at Abelaj Law, P.C. at 212-328-9568 to learn more about how to integrate charitable giving into your estate plan.
Estate Planning When Your Spouse Isn’t On Board: What to Do
If you are ready to begin estate planning, but are getting resistance from your spouse, you may be wondering if you should go it alone. Although addressing your combined estate and goals is helpful, you can take control of your estate planning on your own.
Open and Honest Discussion
Spouses often complete their estate planning together. However, it is not unusual for one spouse to avoid the topic. Estate planning comes with difficult emotions and important decisions. It’s not surprising that someone may not want to deal with this head-on.
Discuss with each other the reason that one is resisting this project. If the topic is emotionally heavy for your spouse, ask why and what might help to reduce the emotions. Did your spouse experience the aftermath of a difficult estate administration? Are they worried about not being alive at key moments of their loved ones’ lives?
Getting to the heart of their reluctance is important information for you to understand if you will be able to convince them to engage in estate planning with you, or if you need to take on this matter for yourself.
Your Individual Estate Plan is a Gift to Your Loved Ones
Estate planning for a couple may include joint decisions on desired bequests to loved ones, guardianship appointments of minor children, tax benefits and combined legacy goals. If your partner does not want to engage in the process, you can still make many of these key decisions on your own.
We often work with one partner in a couple, usually a woman, whose partner does not want to engage in estate planning. We provide you with an outline of what estate planning powers you have alone and how it might be different if your spouse joined in the planning. You will be aware that you have much ability to direct the disposition of your estate.
Your individual documents will express your wishes to ensure that your loved ones have a seamless plan to administer your estate. By planning ahead, it will allow your loved ones to focus on your shared memories and not on the complexity of administering an intestate estate.
Intestacy is Your Default Estate Plan Where Distribution is Governed by the Law
Without an estate plan in place, you will be considered intestate at your death. The result is that the law will govern who receives your estate, who is your estate’s administrator, and who is your children’s guardian.
In New York, the estate of a person who dies with a spouse and no children passes entirely to the spouse. If the person dies with a spouse and children, the first $50,000 passes to the spouse, plus 50% of the residuary, with the other 50% to the children.
In New Jersey, the distribution is more nuanced. As a comparison, if a person dies with children and no spouse, the children receive the entire estate equally. If a person dies with a spouse and children all born of the marriage, the spouse receives the entire estate.
Intestacy requires additional Court oversight and does not allow for deviation from the law of descent and distribution. Your estate administrator may have to file a costly bond if there are minor children. If most of your relatives are estranged, your estate administrator may have to hire a genealogist to identify which of them are automatically entitled to your estate assets. If you have a taxable estate, your heirs will receive a lower bequest because you did not proactively take steps during your lifetime to create lifetime trusts.
By creating an estate plan, you will be able to override most of the default laws and avoid the extra costs and delays in an extended court proceeding.
Moving Forward Confidently on Your Own
The law does not require that spouses engage in estate planning together. If you have attempted to convince your spouse that estate planning is important to you, and they have not agreed, it may be time to forge ahead on your own.
The process is empowering as you will have the opportunity to discuss your goals with an attorney, understand the options available to you, and improve the outcome for your loved ones. You will feel relieved to know that you have taken control over your estate plan and that your legacy goals will be realized.
At Abelaj Law, PC, we are committed to assisting individuals and families with all of their estate planning legal needs so they can feel confident that their final wishes are honored. Contact our experienced legal team today at 212-328-9568 for a free introductory call to learn more.
Estate Planning For Embryos Under New York State Expanded Bill of Rights
If you are a New York State resident and who has obtained medical care to expand your family via assisted reproductive technology, you should be aware of the revision of New York State’s Equal Rights Amendment. The Amendment expands civil rights for purposes of reproductive healthcare, but leaves ambiguity as to whether stored genetic material is covered under the law.
The recent National election results may also create uncertainty on your individual bodily autonomy and privacy in managing your reproductive healthcare. Without getting into Constitutional law, this article provides insight on how to plan for your genetic material following the new State Civil Rights law and existing statue in New York State. If you need assistance on estate planning for your genetic material, please contact an experienced attorney at Abelaj Law, P.C. at 212-328-9568.
New York State Expands Civil Rights to Include Reproductive Healthcare, but Does Not Address Stored Embryos, Oocytes
On November 5, 2024, New York State voters approved the Equal Rights Act, which expands the definition of individual civil rights within the state to include, in part, “pregnancy, pregnancy outcomes, and reproductive healthcare and autonomy.” Individuals cannot be discriminated against based on these, and other, characteristics. It’s important to note that the language does not provide clear guidance on how it applies to resulting genetic material.
Although the text appears to be clear, the interpretation of what is considered “reproductive healthcare and autonomy” will be determined by the Courts as cases arise to clarify scope and meaning. In order to appreciate the uncertainty, it might be useful to describe ART and the resulting genetic material.
Genetic Material Resulting from Assisted Reproductive Technology
According to the Department of Health and Human Services, in 2021, approximately 2.3% of all infants born in the United States were conceived through the use of ART, which includes in-vitro fertilization (IVF) or intra-uterine insemination (IUI). According to DHS, “the reasons that cause an individual to obtain medical assistance for conception are numerous, including age, health conditions, and for couples who are same sex or individuals without a partner and cannot otherwise conceive. In addition, some couples experience unexplained infertility where tests reveal no obvious causes of infertility.” Among the states with the highest rates of ART are New York and New Jersey.
ART requires a patient to be under the care of a reproductive endocrinologist or medical facility. ART allows a patient to plan and preserve the opportunity to have a child at a later time. The process frequently includes specialist consultations, costly prescription medications, and medical procedures, which are not always covered by insurance, for the important goal of obtaining eggs, sperm or reproductive tissue for purposes of conceiving. A patient may require more than one round (or attempt) of ART before they are able to conceive. One round of ART may result in genetic material that is not initially used but is instead preserved for later use.
The Food and Drug Administration regulates human reproductive tissue and governs disposition of donated genetic material. It does not, however, govern the disposition of genetic material created by the intended parent or genetic material purchased by a potential parent.
Rights to Genetic Material After Death Based on Contract Law
Since 2014, New York State law provides a framework on the disposition of genetic material resulting from IVF and the rights of a child born after the death of an intended parent by the use of ART. Section 4-1.3(j) of the Estates, Powers and Trusts Law provides that disposition of genetic material is “subject exclusively to the provisions of this section and to any valid and binding contractual agreement between such person and the facility providing storage of the genetic material and may not be the subject of a disposition in an instrument created by the person providing such material or any other person.”
To simplify, New York State’s position is that disposition of genetic material is a private matter that is governed by a contract between the “owner” of the genetic material and the facility storing the genetic material. For this reason, it is critical that if you execute the appropriate documents with your storage facility on how to dispose of your genetic material following your death.
Take Charge by Reviewing Your Written Contract and Alerting Your Estate Fiduciaries
Ensuring that your genetic material is disposed of according to your wishes requires that you review the written agreement you signed with the storage facility. If you are unsure of what you initially requested or would like to make a change, contact the storage facility directly.
If you are looking to dispose of your genetic material prior to your death, you must contact the storage facility. Be prepared for a potentially lengthy delay between your request to dispose of, or destroy, your genetic material and the time when it is actually completed. The process usually requires multiple reviews by various doctors and clinicians at the storage facility which may result in a six-month wait before your request is finalized. In order to ensure that your written agreement is honored at your death, consider including a provision in your will that refers to your remaining genetic material. Ensuring that your wishes are honored requires that your fiduciary be aware that you have provided written instructions.
Contact Us for Assistance
At Abelaj Law, PC, we are committed to assisting individuals and families with all of their estate planning legal needs so they can focus on their family and health priorities. Contact our experienced legal team today at 212-328-9568 for a free introductory call to learn more.
Announcement: Proud Member of PurseStrings!
We are pleased to share that Jennifer V. Abelaj has been admitted to the membership of Purse Strings.
With the motto “Be Financially Fearless,” Purse Strings focuses on giving women access to easy-to-use resources and qualified financial professionals who focus on serving women. The Founders have deep expertise in financial strategy and are passionate in empowering and encouraging women to finally take charge of their financial future by surrounding themselves with a team.
Purse Strings vets every single professional on its platform. Each advisor has years of deep experience in their profession and the commitment to elevating women’s wealth
As a woman-owned business who has advised many women with their estate planning and philanthropy goals, we are grateful to be a part of this community and look forward to serving women to help their wealth grow beyond their imagination.
By partnering with their financial advisors and accountants, our Firm provides holistic, practical and impactful solutions to minimize estate taxes and make their ideas happen!
Learn more about Purse Strings About Us | Financially Empowering Women | Purse Strings and check out our page (Jennifer V. Abelaj, Esq., CPA | Attorney | Purse Strings) (still in progress!).
Federal and New York State Corporate Transparency Act; Act Now!
The Corporate Transparency Act (“CTA”) is effective January 1, 2024. FinCEN now requires that all LLCs, corporations, limited partnerships, or other similar businesses file information about the company’s beneficial owners. Unless an exception applies (such as for non-profits or large organizations as defined in the Act), existing companies must file no later than December 31, 2024.
In addition, New York State has also passed a similar corporate transparency act, which takes effect on December 21, 2024.
Registration
The portal to register your company’s beneficial ownership information is currently live and may be accessed using this link ➡️ https://boiefiling.fincen.gov/
At this time, we are directly reaching out to companies whom we have personally represented at initial creation.
If you require assistance with filing your FinCEN report, please contact us by February 15, 2024. If we do not hear from you by this date, we will assume that you do not require our assistance to comply with the requirements.
The penalties for failure to timely file a complete report are steep, starting at $500 per day that the filing is late, plus criminal penalties.
Learn More
If you would like to learn more about the CTA, please refer to our prior newsletters below:
Updated Estate and Gift Tax Values for 2024
Effective January 1, 2024, the applicable values for estate and gift tax purposes increased in accordance with inflation.
Federal Lifetime Estate and Gift Tax Exemption
The federal lifetime estate and gift tax exemption is now $13.61 million. Married couples may combine this amount for a total of $27.22 million. For estates where the values owned separately by each spouse are unbalanced, or skewed more heavily toward one spouse, it is recommended that married couples intentionally prepare their estate plans with appropriate tax opportunities.
New York State Estate Tax Exemption
The New York State exemption has increased to $6.94 million. Unlike the Federal estate tax laws, New York State does not allow spouses to combine their exemptions. In addition, New York State has a three-year lookback for gifts made by a decedent. This will result in any gifts being added to a decedent’s taxable estate if he or she dies less than three years after making the gift.
Federal Annual Gift Tax Exclusion
The Federal annual gift tax exclusion has increased to $18,000 per donee, for a total of $36,000. As was allowed in the past, spouses who decide to split gifts may double the annual gift to a donee. Any excess gift will reduce the donor’s lifetime exemption.
Changes on the Horizon in 2026 to Rollback Federal Exemption
These rates are at historic highs. However, the Federal exemption will sunset on December 31, 2025, to a level of $5 million, indexed for inflation, which is expected to be approximately $7 million.
Contact Us for Assistance
If your estate is nearing any of these values within the next two years and would like help with estate tax planning, we encourage you to contact our office please contact our office at 212-328-9568 or via email at assistant@abelajlaw.com.
When You Should Consider Modifying Your Estate Plan
Estate plans can help individuals determine how their assets and property are divided after death. Many people believe planning for their estate is a one-time task, but that is not always the case. Life changes and other events may require modifying your estate plan. Find out when you may need to update these legal documents. If you have questions about estate planning in New York, please consider scheduling a consultation with the experienced New York estate planning attorneys at the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
Why It Is Important to Update an Estate Plan
The American Bar Association states that estate planning is the process of determining how a person’s assets and liabilities will be transferred after death. Individuals may want to regularly review and update their estate plan to ensure that their assets and wishes are appropriately reflected in the documents. Failing to modify an estate plan could mean that assets are distributed to unintended beneficiaries. An estate plan holder should make any changes as soon as they arise or when they have a change of plans. With that, it may prevent any confusion or discrepancies in the distribution of their assets.
Updating an Estate Plan
When reviewing an estate plan, the individual will want to ensure that:
- Their intentions are still the same regarding assets and property.
- The plans include the proper beneficiaries.
- The document reflects significant life changes.
In some instances, there may be a need to update an estate plan. A few common reasons include the following:
Marriage, Divorce, and Partnerships
Family dynamics are constantly evolving. For that reason, many individuals want to ensure that their estate plan is up-to-date and reflects specific life changes. Anyone who has entered a new marriage will want to include the new spouse in the estate plan. Sometimes, that may include updating bank accounts, retirement accounts, and insurance policies to add the spouse as a beneficiary. On the other hand, if the estate plan includes a divorced beneficiary, it may be time to remove the ex-spouse from any estate plans and legal documents. Along with dividing up assets, estate plans also outline the power of attorney. If a person has named the ex-spouse as this individual, it could be time to make changes to the plan.
Additionally, for anyone who is not legally married but has a partner, it may be the right time for modifying your estate plan to include them, especially if the individual is in a common-law marriage or domestic partnership. Sometimes, the partner may not be entitled to assets under state laws. For that reason, the person’s wishes should be evident in the estate plan to ensure the partner is a beneficiary after death.
Children
Another reason for updating an estate plan includes listing children as beneficiaries. If the children are young, many estate plans will designate someone to be a guardian until they reach adulthood. For those individuals who have remarried a spouse with a child from a previous relationship, it may be time also to add those children into the estate plans. In some cases, state laws will only recognize stepchildren as heirs if the estate plan specifically names them in the document.
People will want to update their estate plans with every life change. Unfortunately, some family members have disinherited their children and will want to make changes to the estate plan. As a result, the estate plan should be reviewed and updated to reflect those changes in the person’s wishes. Reach out to the Jennifer V. Abelaj Law Firm to learn more about planning for your estate.
New Home State and Tax Changes
Along with the above situations, those who have moved to another state will want to ensure their estate plans comply with state laws. Even for those who have not moved, tax laws are constantly changing, and estate plans should stay current with new rules. Often, the individuals may want to establish a trust or will to ensure beneficiaries are not left with tax issues and can avoid probate. Otherwise, the Internal Revenue Service states that a gift tax is imposed when property is given to another person without receiving fair market value in return.
Beneficiary Changes
If a person wants to change or remove beneficiaries from the estate plan, that individual needs to make changes to all aspects of the plan, including updating assets, accounts, and powers of attorney. Failure to update all relevant documents can lead to confusion and discrepancies in the distribution of assets after the person’s passing. Additionally, if any named beneficiaries experience changes in their care needs, those plans will need to be revised, especially for those with special needs.
What Are Other Reasons to Modify an Estate Plan?
There may be unique reasons that may prompt an individual to update their estate plan. For example, if an individual has a trust and wishes to assign a new trustee, they will want to review and revise their revocable living trust to ensure that their trustee list is accurate and up to date.
Significant life changes are not the only reason to update an estate plan. Those with a living will may want to periodically review it to ensure everything is outlined and make any necessary updates. Also, if an individual owns a business or plans to open one, a business succession plan can determine who owns and runs the company after they are gone. Many individuals should consider reviewing their estate plan regularly, ideally every three to five years, to ensure that everything is updated.
Consult With a New York Estate Planning Attorney Today
Modifying your estate plan ensures that changes to your assets and wishes are properly reflected and that the plan complies with local laws. People may want to update their estate plans when there are changes in their personal life, beneficiaries, or tax laws. Regularly reviewing an estate plan with an attorney may also ensure the plan is up to date. If you want to learn more about estate planning in New York, please consider scheduling a consultation with the Jennifer V. Abelaj Law Firm by calling 212-328-9568.
4 Critical Estate Planning Tasks To Do Before Going On Vacation
Taking a break from life’s fast-paced and often stressful cadence to go on vacation can be a wonderful experience. Before packing your bags and boarding a plane, however, you may want to complete a few estate planning tasks to create a plan in the event that something were to happen on the trip. For help developing estate planning goals for your unique needs, consider contacting a New York estate planning lawyer at the Jennifer V. Abelaj Law Firm by calling (646) 885-1330 to schedule a consultation.
What Is an Estate Plan?
An estate plan is a set of instructions that are put in place to specify what will happen to a person’s assets upon his or her death. The estate includes everything that a person owns or owes (e.g., debts) at the time of his or her death. Typically, estate plans also include documents that indicate who has the authority to make healthcare or property decisions if the individual is incapacitated.
Additionally, as part of a complete estate plan, people can designate beneficiaries of assets they own. For example, they could name a daughter as the payable-on-death beneficiary of a checking account. Other assets, such as retirement and investment accounts, allow the owners to name beneficiaries so that some assets are automatically distributed when the account holder passes away.
4 Estate Planning Tasks To Do Before Going on Vacation
Going on a vacation can be an exciting (but sometimes stressful) endeavor with so much to take care of before leaving. While on vacation, people hope to only have fun and entertaining experiences, but the reality is that injury or illness can unexpectedly arise, even when someone is on a trip. Without proper estate planning, a person’s loved ones may be confused about what to do and may not be able to give the support needed.
Before people depart on vacation, therefore, taking care of a few estate planning tasks can be beneficial for themselves and their loved ones. Four important items to complete before leaving are:
- Updating (or writing) a will
- Signing or updating a power of attorney for property
- Signing or updating a power of attorney for healthcare
- Updating beneficiaries on important accounts or policies, such as checking and retirement accounts
Update (or Write) a Will
A Last Will and Testament (will) is a document that gives instructions about distributing certain assets when the testator, the person who writes the will, dies. In the will, the testator chooses an executor or administrator who oversees carrying out the document’s instructions. Additionally, the will names beneficiaries or heirs who will receive the testator’s property. In some cases, the will creates a trust called a testamentary trust that holds assets on behalf of named beneficiaries, generally the person’s children.
Before going on vacation, updating or writing a will may help to ensure that loved ones receive the inheritance you want them to have after you die. If someone does not have a will or if the will is inadequate, according to the New York State Senate, New York intestate laws regarding succession will determine who inherits the person’s property. Therefore, having a well-written will in place can prevent certain loved ones from being left out of the process. If you are ready to address estate planning goals, a seasoned estate planning attorney from the Jennifer V. Abelaj Law Firm may be able to help.
Sign (or Update) a Power of Attorney for Property
According to the state of New York, the law allows individuals to create a power of attorney for property so that the individual (the principal) can give someone else (the agent) authority to make decisions about the principal’s property under certain circumstances. The principal chooses when a power of attorney for property becomes effective, either on a specific date or when something specific happens, such as the principal’s incapacitation. A power of attorney for property may be essential when a person goes on vacation because it ensures that someone can take care of the principal’s finances if he or she were to suffer a debilitating injury on the trip.
In the power of attorney form, the principal can describe the scope of the agent’s authority regarding the principal’s assets. For example, the principal might limit the types of transactions the agent can make (e.g., paying expenses or making transfers) and for what purpose. Having a power of attorney named before going on vacation can also be helpful by designating someone who can take care of certain financial matters for the principal while he or she is gone, not just in case of incapacitation.
Sign (or Update) a Power of Attorney for Healthcare
Like a power of attorney for property, a durable power of attorney for healthcare allows a principal to name an agent to make medical decisions on his or her behalf under certain circumstances. In a healthcare power of attorney, the principal defines the scope of decisions the agent can make. Additionally, the principal indicates any desired lifesaving measures, such as life support, to take if he or she becomes incapacitated.
Thinking about the potential scenarios may be uncomfortable, but putting a plan in place can help a person’s loved ones if the unexpected does happen. In the absence of proper instructions, the default New York laws dictate who can make a decision and when, and this person may not be the person the principal would have chosen.
Update Beneficiaries on Important Accounts or Policies
The last estate planning task to take care of before going on vacation is updating the beneficiaries on essential policies and accounts, such as payable-on-death instruments. Payable-on-death instruments that may need updating include:
- Checking and savings accounts
- Investment accounts
- Retirement accounts
- Certificates of deposit
Other accounts may also allow the holder to name a beneficiary to take possession of the asset upon the his or her death. Payable-on-death instruments are beneficial because they allow the owner to transfer these assets to a loved one outside the probate process. In times of stress and uncertainty, such as when a loved one dies, having a streamlined process in place can make a big difference.
Contact an Experienced Estate Planning Attorney for Help Today
A vacation is a time to create new memories and unburden yourself of the stressors of daily life. By taking care of estate planning matters before departing, individuals can provide clarity and continuity for their loved ones should something happen to them while they are gone. For help with your estate planning goals, consider calling (646) 885-1330 to schedule a consultation with an experienced estate planning attorney at the Jennifer V. Abelaj Law Firm