Your loved ones may inherit your estate according to the laws of intestacy if you die without establishing a valid and enforceable Last Will and Testament document in New York State. So not only may you want to enforce a will, but you may also want to set up a trust for each of your beneficiaries, specifically your children, so that you may control when they receive and how they use their different inheritances. With all that considered, please follow along to find out what to do if you want your children to inherit your estate differently and how a proficient New York City estate administration attorney at Zimmet Law Group, P.C. can help you come up with a game plan.
What are the laws of intestacy in New York State?
If you have a surviving spouse but no children, your entire estate may go to your spouse. Conversely, if you have surviving children but no spouse, your estate may be divided among your children evenly. Lastly, if you have both a surviving spouse and children, your spouse may inherit the first $50,000 of your estate plus half of its residuary; then, your children may split the remaining balance evenly amongst themselves.
Specifically, say that your estate is worth $500,000. Well, your spouse may inherit $50,000 plus $225,000. Then, say you have two children, who subsequently get $112,500 each.
What if I want my children to inherit different amounts of my estate?
Still using the example mentioned above, you may initially assume it is only fair for your two children to each get a $112,500 share of your estate. But upon further reflection, you may find it more suitable for one to get more and the other to get less, or to impose other conditions. This is when you may want to set up a trust fund for each of your children.
That is, you may just so happen to contribute financially more to one child than your other child. This may be merely due to their age gap and their hitting certain milestones at different points. Namely, you may have already funded your oldest child’s higher education, wedding to their now-spouse, down payment on their first home, etc. And so, you may want to give your youngest child more funds in their trust in the unfortunate event that you are no longer around when they have these accomplishments.
Going back to their age gap, you may find it inappropriate and risky if your minor child inherits a lump sum of $112,500. So, you may establish a different condition in their trust that directs their trustee not to give them their inheritance until they reach the adult age of 18 or older. This is while you may advise that your oldest child get their inheritance in small, incremental payments.
To ensure you do not go through this critical yet complex process by yourself, please reach out to a talented New York City estate planning attorney. Our team at Zimmet Law Group, P.C. is more than happy to serve you.
