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4 Times to Make Sure You Have a Will

Fri, 25 Feb 2022 16:00:03 GMT

When You Should Prepare an Estate Plan?

Preparing an estate plan is always important, especially when significant life events change your lifestyle and financial needs. Creating or updating a will or trust in keeping with these milestones ensures your valuable property goes to the individuals you choose. Below are a few situations that call for creating or updating estate documents.

1. Getting Married

Spouses are granted automatic inheritance rights in New York. Until the time you have children, this means your spouse will receive the entire estate when you pass, which may not conform to your wishes. If you want to leave assets to other family members or sentimental items to a friend, writing a will is the only way to ensure those wishes are respected. Equally as important, we recommend that you review all of your assets to make sure they will be distributed as you desire. Moreover, a Power of Attorney, as well as a Healthcare Proxy might be appropriate.

2. Having Kids

Children depend on their parents to meet their physical, emotional, and financial needs, so it's important to ensure they're cared for in case something happens to you. Writing a will allows you to name a guardian to care for your child if both you and your spouse both pass away, as well as to continue providing for them financially.

During this process, you may decide to establish a trust to manage your assets until your child is grown. This offers more control over the wealth you’ve built and reduces the risk of someone else using it for their own gain.

3. Getting Divorced

Fortunately, a divorce automatically nullifies any portion of your will that would have benefited your spouse. However, those assets will be distributed according to your state’s intestate laws unless there are other provisions in place. Rewriting your will after a divorce ensures that the assets your spouse would have received go to the friends and family members you choose. Powers of Attorney and Healthcare Proxy will also need to be updated.

4. Gaining or Losing Significant Assets

If your financial circumstances have changed significantly, whether due to income fluctuations, major purchases, or an inheritance, writing a will can prevent major conflicts between family members after you pass away. Along with damaging relationships between your loved ones, these legal conflicts can also consume a large portion of your estate.

Your estate plan should accurately reflect these assets, so you should also update your will if you lose or sell important belongings. This will save your executor the trouble of trying to track down anything you no longer own.

With over 60 years of experience serving clients throughout the Rochester, NY, area, Pelkey & Pelkey, P.C. has the skills to ensure your estate plan accurately reflects your wishes. They provide affordable legal advice tailored to your unique situation. Visit their website for more on their estate planning services, or call (585) 544-3440 to schedule a consultation.

What Happens if Someone Passes Away Without a Will?

Tue, 18 Jan 2022 16:16:02 GMT

After someone passes away, their belongings and assets must be distributed. Without a will that details who should inherit these assets, the estate must go through a legal process known as administration, which can lead to delays and decisions that may not correspond with the wishes of the deceased. Fortunately, estate planning can give you control of your assets, ensuring that they end up in the correct hands. Here's an overview of this process and why it is so essential.

What Are the Consequences of Passing Away Without a Will?

When someone passes away without a will, the state has enacted statutes that outline specific rules governing distribution. In New York, the property is distributed to the closest living relatives. Perhaps, the most compelling reason for preparing a will is to avoid the statute that specifically directs that a spouse does not inherit everything where there are children involved. Although the spouse receives the first $50,000, the balance is split between the spouse and the children. Most clients prefer that their spouse inherits their entire estate. Without a will, such will not happen.

Unfortunately, many people are under the mistaken impression that their estate will pass to the state if they don't have a will. Such is not the case. As noted previously, the family will inherit (but not necessarily as intended by the deceased). The state is involved only if the decedent has no family at all.

As I have mentioned in some of my previous articles, the will only deals with those assets that are owned solely in the name of the deceased and do not have a designated beneficiary. Clearly, a review of your assets should assist you in preparing for your estate planning conference.

How Can Estate Planning Help?

Writing a will is a major part of estate planning and can ensure that your property is divided according to your wishes. In the will, you will appoint an executor, who is given the legal responsibility of administering the terms of the document. Many people choose a family member or a trusted friend to serve in this role.

The will should focus on how you wish to distribute your assets in the event of your death. Some prefer to outline all your property, including real estate, vehicles, bank and investment accounts, and any other valuable items. You can name beneficiaries to inherit all or some of these assets. Others, prefer to make more general distribution plans as one never knows what their estate will consist of at the time of their death. Finally, you can also appoint guardians for your children and caretakers for pets, as well as leave behind donations to charitable organizations. Going through this process will ensure that your final wishes are respected and will ease the burden on your family.

Craft a will with the help of the legal team at Pelkey & Pelkey, P.C . They provide skilled legal counsel and representation for clients in Rochester, NY. With more than 60 years of combined experience, they specialize in estate planning and real estate law, including wills, trusts, and property sales and purchases. Call (585) 544-3440 to schedule a consultation, or visit their website to learn more about the firm.

Understanding the Difference Between a Power of Attorney & a Health Care Proxy

Mon, 20 Dec 2021 16:26:56 GMT

It’s common to confuse a power of attorney and a health care proxy. While each serves to carry out your wishes, they do so in very specific ways. Understanding their differences will simplify the estate planning process and ensure that everything is in order. The following guide offers a closer look at these two options.

What Is a Power of Attorney?

Assigning a power of attorney gives a person the right to handle your estate when you become incapacitated or are unable to travel and sign documents. This responsibility can include managing your money, buying and selling real estate, and collecting government benefits on your behalf. They can also file and pay personal income taxes, continue making investments and purchase insurance policies that may be helpful to you and your beneficiaries. In the state of New York, the person you appoint will need to sign the power of attorney and acknowledge that they will always act in your best interest.

It is essential to meet with the person before granting these powers so that both of you feel comfortable with your decision. Additionally, it provides an opportunity to discuss the limitations of the role and any plans you have for the future.

What Is a Health Care Proxy?

A health care proxy involves upholding the rights of an individual when they’re no longer able to speak for themselves. For example, the associated responsibilities include selecting available treatment options and pursuing the possibility of more tests. If you reach the point of total incapacitation, someone you trust may have to decide to take you off of life support.

It’s essential to have a face-to-face conversation with the person you wish to appoint, and it's even better if they're someone you know well and trust. After explaining their responsibilities, it's best to ensure that they fully understand their role and are ready to carry out your wishes no matter what happens.

Given the importance of both of these documents, it is absolutely essential that you trust the individual. If you have any concerns whatsoever, chances are you made the wrong choice. We often recommend that you will appoint an alternate so that if your first choice is unavailable, there's a backup readily available.

Ensure the appropriate documents are in place by meeting with Pelkey & Pelkey, P.C. in Greater Rochester, NY. With over 60 years of combined experience, these estate planning attorneys understand the intricacies of naming a power of attorney. They are also proud members of the New York State Bar Association and Monroe County Bar Association and commit to keeping up with the latest developments. Call (585) 544-3440 to schedule a consultation, or visit their website to learn more about their services.

A Guide to Revocable & Irrevocable Trusts

Fri, 26 Nov 2021 16:46:55 GMT

Most people are under the impression that their will designates how their property will pass at the time of their death. Truth be told, the will typically only addresses those assets that are held exclusively in the name of the decedent and lacks a beneficiary. For example, life insurance policies will pass directly to the beneficiaries and not under the will. Investment accounts are increasingly passing in accordance with beneficiary designations. These types of testamentary substitutes are growing in use as they assist the family in avoiding probate. Under the topic of testamentary substitutes, we are turning to the use of "trusts" as another valuable tool in avoiding probate. Simply stated, a trust is nothing more than a separate legal entity that can be used as a valuable tool in avoiding probate. Revocable and irrevocable trusts are usually discussed during estate planning, and they designate all or a portion of your assets as an inheritance. A third party will manage the account for the beneficiaries and ensure the entire amount remains separate from the rest of the estate. However, there are several differences in how they function, and reviewing the following guide could help determine which option is best.

What Is a Revocable Trust?

A revocable trust is one that allows you to change the terms at any point in time. For example, if there’s a falling out among family members, then it’s fairly easy to remove them as one of the beneficiaries. It also provides a way to include new additions, such as babies and spouses, as well as update how to divide up the assets.

However, since you’re still maintaining a level of control over the accounts, they can become susceptible to lawsuits. For example, if the sale of the estate doesn’t produce enough to pay back your creditors, then they might use the revocable trust to settle the debt.

What Is an Irrevocable Trust?

An irrevocable trust is one that you can't change after signing the paperwork. The amount that’s been set aside will remain in the account until the date of your passing. After this time comes, a third party will distribute the inheritance to the listed beneficiaries.

Since an irrevocable trust removes all ownership rights, it's considered to be completely separate from the estate. Therefore, having one in place reduces the risk of your beneficiaries having to go through probate. It also ensures that creditors won’t have any claim to the trust. Any money will be locked in place, which means you can’t make a withdrawal in the event of financial loss or bankruptcy.

Traditionally, trusts cost significantly more than a simple will but end up saving the family considerable sums of money by avoiding the probate process.

If you’re considering setting up a trust, reach out to Pelkey & Pelkey, P.C. Located in Rochester, NY, these professionals have over 60 years of combined experience and are highly knowledgeable. They recognize that every situation is unique and offer a personalized approach to meet your needs. Call (585) 544-3440 0 to schedule a consultation with an attorney, or visit their website to learn more about how they can help.

What's the Difference Between a Power of Attorney & a Living Will?

Tue, 26 Oct 2021 17:00:43 GMT

Estate planners often make the mistake of focusing their efforts on what happens when the client passes on. Equally as important, is to plan for when the client is unable to make their own business legal, financial, and healthcare decisions. The two most common tools are the power of attorney and the healthcare proxy/living will.

What Is a Power of Attorney?

A power of attorney is a legal document whereby you will appoint someone to make important choices on your behalf. In NY, the agent you have appointed is capable of acting on your behalf until such time as you revoke the power of attorney or you pass away. A durable power of attorney survives your incapacity so that your agent can act when you no longer can due to a decline in your health or mental state. The power of attorney can be tailored to address your particular situation, but in most instances, the grantor allows the agent the full range of business, legal and financial affairs to the authority of the agent.

The agent is a fiduciary and held to the highest standard unto the law to handle all matters in a prudent manner. Indeed, the agent must similarly sign the power of attorney to acknowledge this responsibility.

What Is the Difference Between a Living Will and a Healthcare Proxy?

A living will is a written document of health care directives. It enables you to determine what end-of-life care you desire and what standards should be followed. Typically, the living will address those situations in which the principal has an irreversible terminal illness with death being imminent. As I try to explain, the living will is often for the protection of the family rather than the patient. In other words, the living will can often prevent the family from having to watch their loved one undergo needless pain and suffering without any potential benefit. However, others feel very strongly that where there is life there is hope and cannot bring themselves to allow the patient to pass before their time.

Many physicians in NY are now utilizing a MOLST-medical order for life-sustaining treatment, which is very similar to the living will.

A healthcare proxy, identifies the agent that you wish to appoint to make your healthcare decisions in the event you are unable to do so. Unlike a power of attorney, you can only appoint one agent at a time. However, it is a common practice to name an alternate agent in the event the primary agent is unavailable.

If you aren’t sure whether you would benefit from a power of attorney or living will, consult the team at Pelkey & Pelkey, P.C. , in Rochester, NY. These professionals have the compassion and skills to help you determine the best allocation of assets and directives. Learn more about their services by visiting them online or calling (585) 544-3440 .

3 Reasons Everyone Should Prepare a Will

Tue, 24 Aug 2021 17:17:02 GMT

Why Is a Will Necessary?

Most people have valuable investments, important belongings, and sentimental items they'd like to pass down to certain people after they’re gone. However, no matter how many times you’ve verbally expressed your wishes, writing a will is the only way to ensure they're respected. The following guide highlights a few reasons why everyone should include this document in their estate plan.

1. Decide How Belongings Are Distributed

If you pass away without a will, the court will distribute your belongings according to the state’s intestate laws . These laws follow strict guidelines based on familial relationships, regardless of the quality of those bonds.

It's essential to write a will if you want to leave possessions to a friend or beloved relative aside from your spouse, children, and siblings. This will also decrease the risk of loved ones disputing the distribution of family heirlooms or especially valuable belongings.

2. Choose an Executor

The executor is the individual who will manage your affairs and enact the instructions in the will. This role comes with a great deal of responsibility, so it’s essential to choose someone who is trustworthy and organized. The will provide an opportunity to nominate someone to serve as the executor. Otherwise, you leave it up to your family to decide. The one that is fastest to the courthouse may not be the best choice. Ultimately, the court will designate an administrator, who may not be the person you would have chosen.

3. Nominate a Guardian for Any Children

Preparing a will also allow you to select someone to care for your children if something happens to both parents. In the estate plan, you can choose someone who shares your values and parenting style and who has the resources to raise the children as you would have wanted. If you haven’t prepared a will, the court will choose the closest family relative instead. Should both parents die at the same time, the court will struggle with evaluating who is the best party to handle your children's welfare and finances. Although courts usually attempt to find a "just" result, they clearly don't have the full and complete understanding of your situation. Suffice it to say, preparing a will, will ensure that your intentions are respected.

If you need help creating a will, turn to Pelkey & Pelkey, P.C . With over 60 years of combined experience, this team of attorneys serves families throughout Rochester, NY. They provide the legal advice you need to ensure your wishes are respected. Visit their website to learn more about how they can help, or call (585) 544-3440 to schedule an appointment.

3 Benefits of Having a Power of Attorney

Thu, 08 Jul 2021 17:25:50 GMT

Why Should You Have a Power of Attorney?

A power of attorney is a legal document that gives another person power to make financial or legal decisions on your behalf. It comes in two forms: durable and springing. Our office normally recommends that our clients prepare a durable power of attorney as a springing power of attorney can prove difficult to execute as it relies upon a certain set of facts in order to become operable. Both options provide numerous personal and legal benefits, including the ones listed below.

1. Maintain Control

Whether you're incapacitated or want to take a step back, the power of attorney allows you to set clear instructions. You can create a full outline of what decisions need to be made and what steps to follow. This detailed guide eliminates questions and second-guessing since it makes your wishes very clear. You also have full control over who makes these decisions on your behalf, providing peace of mind that a trustworthy individual is in charge and will follow your directions.

2. Create a Talking Point

It's not always easy to have conversations with loved ones about topics related to aging, illness, or even death. However, the document provides an excuse to review your wishes so that loved ones are aware and know what to expect, which can prevent challenges in the future.

It also serves as an opportunity to let them know who you've chosen to make decisions. This advantage allows you to explain your reasoning and answer questions.

3. Protect Assets & Finances

Even if you become incapacitated, bills will still come through. A power of attorney ensures the chosen individual has the authority to make payments, including mortgage and medical bills. Maintaining these items prevents fines and the risk of collections and repossessions.

The arrangement also gives the agent power to file paperwork for benefits, like Social Security and Medicare. They can also transfer assets to beneficiaries or a trust to meet eligibility requirements for public benefits.

4. The Grantor Maintains Control Over All Assets

Most importantly, the person granting the power of attorney to a third party or agent maintains control over all their assets. Moreover, the power of attorney can be revoked at any time by the grantor. Finally, it's an additional step in simplifying your financial affairs so that your children will not have to petition the court in order for them to handle your financial affairs and save your family considerable money.

If you're ready to put your wishes in writing, contact Pelkey & Pelkey, P.C. This local attorney provides personalized guidance for clients throughout Greater Rochester, NY. From living wills to powers of attorney, their legal team can guide you through the steps and answer any questions along the way. Visit them online to learn more about how they can help, and call (585) 544-3440 to request a consultation.

How to Avoid Probate in New York

Tue, 11 May 2021 17:34:49 GMT

5 Probate Alternatives Under New York Law

When someone passes away, their assets must go through legal processes, including probate and probate alternatives , before they can be distributed to beneficiaries. Until recently, most assets passed under the deceased last will and testament through a process known as probate. In New York, the Surrogate’s Court handles probate issues like validating wills and transferring property to legal heirs and beneficiaries. Given the complexity of the law, most people work with an attorney to handle this matter on their behalf. These proceedings can take months and be complicated, as well as costly. On the positive side, the deceased is assured that his/her worldly goods will pass exactly as intended. However, incorporating probate alternatives into an estate plan will help your loved ones avoid court delays and expenses, so long as you are working with trustworthy agents.

1. Living Trust

A living trust is becoming one of the most common ways to avoid probate. By transferring assets of any kind to yourself as trustee for the living trust allows you to avoid probate with regard to that particular asset(s). The two most basic living trusts are the revocable and irrevocable living trusts, both of which avoid probate. You would appoint a successor trustee just as you would appoint an executor(rix) to implement your wishes upon your death.

2. Tenancy in Common

The most popular form of ownership is a tenancy in common. Two or more individuals can own real estate or personal property this way, including cars and financial accounts. A tenancy in common ownership gives each owner equal rights to use the property and transfer their share to others, including into a living trust, which avoids probate.

When you pass away, your ownership interest goes to whomever you name as the trust’s beneficiaries, such as children or grandchildren. The surviving tenants in common continue their ownership.

3. Joint Tenancy

You can own property with one or more individuals in a joint tenancy, which passes the asset to the surviving co-owner without going through probate.

Often called joint tenancy with right of survivorship, this probate alternative applies to real estate or personal property. With two or more joint tenants, when one of the co-owners passes away, the survivors hold the property as tenants in common unless the ownership document states otherwise.

4. Tenancy by the Entirety

If you are married and plan to buy real estate, New York allows you and your spouse to hold the title to it as a tenancy by the entirety. This special type of joint tenancy applies only to property owned by married couples. While both spouses are alive, neither one can leave the property to someone else. When one spouse passes away, the surviving spouse becomes the sole property owner automatically, free and clear of any debts the deceased spouse might have owed on the property.

5. Totten Trusts

One can designate a beneficiary of a bank account by placing a designation "ITF" (in trust for) or "TOD" (transfer on death). My recommendation is to consult your bank. Unlike a joint account, the beneficiary will not have access to these funds during your lifetime.

To learn how probate and probate alternatives can impact property ownership, talk to an estate planning attorney at Pelkey & Pelkey, P.C. This legal team has more than 60 years of experience protecting assets and helping clients make wise decisions. Residents throughout the Greater Rochester, NY, area rely on these attorneys for personalized service and detailed knowledge of probate and probate alternatives. Visit the website for more about these estate planning attorneys and call (585) 544-3440 to schedule a consultation.

Why Should You Create a Trust?

Sat, 20 Mar 2021 06:30:58 GMT

3 Benefits of Creating a Trust

When it comes to creating an estate plan, most people automatically think about preparing a last will and testament. Although I agree everyone should have a will , I think far more people would benefit from a trust in addition to a will. Here are a few advantages that this legal document offers.

1. Privacy

Although a will is a necessary part of any estate plan, it becomes a public record once you pass away. Therefore, anyone could find out what assets you have and who inherited them. Trusts aren’t usually made public to avoid probate, and the only people who will know your document's details are your closest loved ones.

2. Avoid Probate

When you pass away, all the assets with a named beneficiary, pass directly through the beneficiary without having to probate the will. All assets without a named beneficiary (usually your house and some minor bank accounts) must go through the probate process, by having the will admitted to probate. A judge must authenticate the will to ensure that it was drafted and signed by the decedent. This process can take weeks, months, or even years. During this time, the assets will be withheld from the beneficiaries. By putting the assets into a trust, you can avoid the probate process so that your loved ones don’t have to wait.

3. Save Money

In most cases, creating a trust may help you save money. The probate process involves a period in court, which often results in legal expenses. If there are any conflicts regarding the details of the will, these costs may be high. However, with a trust, you can prevent probate and allow any expenses to go towards the beneficiaries instead. In some cases, items put into a trust may also avoid estate taxes after your passing.

If yo u need help setting up a trust, turn to Pelkey & Pelkey, P.C. in Rochester, NY. This law firm can help you and your loved ones create wills, trusts, and other crucial documents. Their staff specializes in real estate law, and they can also help you navigate the probate process after a loved one’s passing. Visit their website to learn more about their services, or call (585) 544-3440 to schedule a consultation.

5 FAQ About Powers of Attorney

Tue, 12 Jan 2021 08:01:14 GMT

A Beginner’s Guide to Powers of Attorney

A power of attorney (POA) is a document that gives someone the legal right to make decisions on your behalf. This type of legal arrangement is especially useful in the event of sudden illness or injury. Take a look at the following answers to learn more about POAs.

What is the principal?

The person granting the POA is the principal, while the person appointed POA is called the agent or attorney-in-fact. A principal must be 18 years or older and have the mental competence to make crucial decisions.

What responsibilities does a POA contain?

There is a range of tasks an agent can handle. Typically, POAs are created to give a trusted friend or family member the ability to make important medical or financial decisions. For example, they might have access to your bank account to pay bills for you.

What’s a durable POA?

This type of POA is designed to protect you if in the event of illness or injury. Specifically, an agent will act on your behalf if you are mentally incapacitated. A durable POA remains in effect until it’s revoked or the principal dies.

Can you still act independently after granting a POA?

Yes. This is probably the most important and crucial element of a POA. Mainly, a POA does not take any power away from you. You still have complete control over your entire life, including health and financial matters. A general or regular POA does not prevent you from making decisions. A durable POA won’t affect any choices if you can operate under your own capacity.

Who should be granted this power?

This decision is entirely up to you, but it is important to select someone trustworthy, although it is certainly possible to appoint different people for different matters, we normally recommend that you appoint a trusted few to handle all of your affairs. If you have any doubts or concerns you are probably selecting the wrong individual to act on your behalf.

To add a power of attorney to your estate planning documents, get in touch with Pelkey & Pelkey, P.C. in Rochester, NY. With over six decades of combined experience, the seasoned lawyers at this firm provide first-rate legal expertise and guidance at affordable prices throughout the Greater Rochester area. Visit their website to learn more or call (585) 544-3440 to set up an appointment today.

When Should I Update My Will?

Fri, 11 Dec 2020 08:07:58 GMT

4 Instances That Call for a Will Update

As life goes on, you’ll see changes to your family, lifestyle, and financial state. When it comes to estate planning, your will should be a clear reflection of this journey. If you’ve encountered any of the following life changes, it’s time to make an update.

1. Your Family Is Growing

As you start to have or adopt children, a will becomes imperative. This is the document you’ll use to designate their guardian, should they still be a minor when you pass away. You’ll also want to designate specific assets for your child, as they will be one of your dearest beneficiaries. When you become a grandparent, you’ll want to follow the same rule of thumb.

2. You Are Divorced or Widowed

willThe loss of a spouse, whether through divorce or death, can be a life-changing event. Naturally, you may want to redistribute the assets you planned to give to them. For example, you may want to pass along your car to your son, or let your best friend take over your vacation home. If you acquire a new significant other, you may want to redirect the assets to them.

3. Significant Financial Changes

If you’ve gained a substantial amount of money or property, this must be reflected in your will. For example, if you’re in talks to sell your business and acquire a lump sum, you may want to designate this money to your children.

The same applies if you’re expecting a sizable inheritance from someone else’s passing. If you’ve invested in a particular piece of property, such as a home, you may want to ensure that a certain family member or friend receives it.

4. Significant Change in One’s Life

The loss of a loved one is probably the most stressful event in one’s life, however, the loss should not and cannot result in unintended consequences. A thorough review of your estate plan will be needed so that your intentions can be honored. Although we normally recommend that a person in mourning should not make any significant changes during the first year, we suggest an exception be made.

If your will is due for an upgrade, head to Pelkey & Pelkey, P.C. of Rochester, NY. For over 60 years, they’ve helped clients manage their estate plans with personalized, attentive service. They can also assist with trusts, power of attorney, and other crucial estate planning documents. To learn more about their skills, visit the website . Or, call (585) 544-3440 to schedule your consultation today.

3 Reasons the Younger Generation Should Create an Estate Plan Now

Wed, 11 Nov 2020 08:13:58 GMT

Why Younger Generations Need to Consider Estate Planning

Creating an estate plan is not typically a priority for those who belong to the younger generation. Many believe this is a task reserved for the elderly, wealthy, or people in poor health. However, the reality is that every adult can benefit from working with an estate planning attorney . Here are some of the reasons it’s important to prepare for the future regardless of your age, how much you own in assets, or your current medical condition.

1. Prepare For Health Situations

Estate plans are about much more than simply deciding who should get your assets after you pass away. It can also include vital information should you become incapacitated. Drafting a healthcare directive and power of attorney will allow you to designate someone you trust to make medical and financial decisions on your behalf. Without these documents in place, the court will determine who should have the authority to make decisions about your care and access your finances.

2. Name a Guardian for Minor Children

estate planning attorneyIf you have minor children, you need to consider who will take on the responsibility of raising them should you have an accident, suffer an illness, or become unable to care for them. An estate planning attorney will help ensure your plan not only provides for your children financially, but also names a guardian you want to take over in your absence. If you don’t have a will, it will be up to the court to decide who raises your kids.

3. Protect Digital Assets

In this day and age, it’s essential to think about what would happen to your digital assets in the event you suddenly pass away. This includes your email, social media accounts, and cloud storage. Additionally, if you have a business and your revenue stems from an application, a business website, or subscriptions, it’s wise to draft an estate plan to protect these assets. Whether you prefer to transfer ownership to a friend or family member or have everything closed, you won’t be able to control how these assets are managed if you don’t clarify your preferences to an estate planning attorney.

By crafting an estate plan, you can spare your loved ones the uncertainty of knowing how you would want your affairs handled should life take an unexpected turn. Pelkey & Pelkey, P.C. will help determine which legal documents are best suited to your unique needs. Offering more than 60 years of combined experience, they are known for providing clients throughout the greater Rochester, NY, area with quality advice and valuable guidance. Call (585) 544-3440 to schedule an appointment or visit them online for more information on their estate planning services.

A Quick Guide to Probate & Probate Alternatives

Sat, 19 Oct 2019 08:27:38 GMT

A Brief Guide to Probate

When someone passes away, their loved ones can’t simply divide up their property between themselves. Instead, their estate will likely have to go through probate, a complicated legal process that may take several months, or even possibly years, to complete. Although Probate has undergone attacks in recent years as being too costly, lengthy and complicated, we still recommend this process for those in certain situations as it remains a viable method of ensuring that one’s estate passes as intended by the decedent.

That being said, we also encourage simplification when the assets can be transferred as intended. Understanding probate and probate alternatives will help reduce the stress and confusion of guiding a family member’s estate through the system.

Probate is the legal process of closing a deceased person’s estate by settling their outstanding debts, liquidating assets, and distributing the estate in accordance with the decedent’s wishes. The first step is applying to Surrogate’s Court so that the Executor(rix) can be formally appointed. Upon such appointment, Surrogate’s Court issues a document referred to as “Letters Testamentary”. Notice must be given to all relatives who would have inherited if there wasn’t a will. Their consent must be obtained or a Citation will be issued directing them to appear in Court so that they may voice their objection or else the Court will proceed with admitting the Will to probate.

During probate, the executor of the estate will have to close the decedent’s accounts, contact creditors , and conduct a thorough inventory of the estate. Any legal challenges will also have to be settled. Probate always requires careful record-keeping on the part of the executor so that beneficiaries are assured that they are receiving their fair share.

Probate & Probate Alternatives

Small Estates

probate and probate alternativesWhile many estates will have to go through probate, many states offer a simplified process for small estates. In New York, a family member may file a small estate affidavit if the value of the decedent’s estate was less than $30,000 at the time of their death. If approved, this program allows you to divide and distribute the decedent’s assets without going through court.

Avoiding Probate: Establishing a Trust

A trust is a separate legal entity which takes legal ownership of your assets and uses them for your benefit. Upon the beneficiary’s death, the trust can either be dissolved and the assets distributed to their heirs, or a new beneficiary can be named. Estates in a trust can bypass the probate process entirely, which may be especially useful so long as you have a Trustee that you trust implicitly.

If you’re putting together an estate plan, Pelkey & Pelkey, P.C. has the legal experience to protect the assets of those you love. Families throughout the Greater Rochester, NY, area rely on their legal team, thanks to their personalized service and detailed knowledge of probate and probate alternatives. Visit their website for more on their estate planning services or call (585) 544-3440 to schedule a consultation.

3 Common Estate Planning Mistakes to Avoid

Fri, 04 Oct 2019 08:35:15 GMT

Estate Planning Mistakes You Should Avoid

The primary purpose of your estate plan, which might include a will , one or more trusts, and several powers of attorney, is to protect your loved ones in all eventualities. If you make a critical mistake at some point along the way, though, such arrangements could essentially be worthless. Most importantly, don’t listen to your neighbors (no matter how well-intentioned) for legal advice. Every situation is unique and what applies to them most likely will not apply to you. Please come in for a consultation so that all alternatives may be reviewed. In the interim, here are some of the most common missteps to avoid when planning for your family’s future.

1. Failing to Update Your Documents

Because your financial situation and family dynamic will inevitably change over time, your estate plan should, too. To ensure loved ones will be protected no matter what happens, review your documents periodically and update them after every major change, such as getting married, finalizing a divorce, starting a small business, and receiving an inheritance.

2. Failing to Plan for the Worst-Case Scenario

If you were to become incapacitated, who would make medical decisions on your behalf? And who would manage your finances? No one wants to consider the worst-case scenario, but doing so is essential if you want to create a truly comprehensive estate plan. Life may be unpredictable, but creating various powers of attorneys will ensure your family can handle anything that comes their way. As we say: “Hope for the best, plan for the Worst”.

3. Failing to Modify Your Beneficiaries

Depending on how you wish to distribute assets, it may be necessary to update your arrangements after certain beneficiaries experience a change in circumstances, as well. For example, maybe you want to leave everything to your grandchildren instead of your children. As such, you'll have to modify your will whenever a new grandchild is born. It’s also important to update your plan if a named beneficiary happens to pass before you do.

Our success is based on doing what is best for our clients, not what is best for us. We strive to create an estate plan that will allow for the transfer of your wealth in the most simplified, economic method possible.

The knowledgeable team at Pelkey & Pelkey, P.C. helps clients draft wills, create trusts, and finalize powers of attorney. Serving individuals, families, and businesses throughout the Greater Rochester, NY, area, this firm is backed by more than 60 years of experience in the legal field. With a commitment to ensuring everyone has access to quality legal counsel, their rates are affordable, and their areas of practices are broad. To learn more about their experience with wills and trusts, visit their website . To request a consultation, call (585) 544-3440 .

3 Life Events That May Require a Will Update

Wed, 19 Jun 2019 08:53:20 GMT

When to Update Your Will

Wills are powerful legal instruments, but they’re only effective if they accurately reflect your current priorities and assets. An outdated Will may result in unintended consequences, that defeats the entire reason for having a Will, “CERTAINTY”. Reviewing and updating your Will after major life changes will help protect your loved ones and ensure your wishes are respected. We also encourage you to spend some time reviewing your assets as more and more assets have a beneficiary designation and such designation may also be out-dated.

1. Marriage

New York State laws gives spouses automatic inheritance rights that may or may not reflect your wishes. If you want your spouse to inherit an asset—such as real estate property—then it’s wise to include that specific information in the will update (being mindful that the existing mortgage will not automatically transfer).

2. The Birth of a Child

willsHaving a child changes every aspect of your life, and your estate plan is no different. Indeed, to me, the most important reason for a will is so that you can appoint who YOU wish to choose to serve as guardian (and trustee) for your child(ren), rather than the Courts. If you fail to name a guardian, the courts will select a family member or friend who petitions for the role to become the child’s legal guardian. This person may not be your first choice, so make sure to include this essential information in your will. Moreover, there are additional financial implications that need your consideration.

3. Acquiring Significant Assets

If your estate has significantly increased in value since your will was prepared, your will should be updated to include your new assets. For example, if you started a new business, purchased real estate property, or if your earnings increased in value, make sure to detail how you want these assets distributed among family and friends. Otherwise, any belongings not included in the will may be distributed to people who are not your first choice.

Whether you’re updating your will or preparing an estate plan for the first time, Pelkey & Pelkey P.C. will help simplify the process and ensure your final wishes are respected. Bryan has more than 30 years of legal experience, providing residents in Rochester, NY, with comprehensive representation. Visit our website for more on our. estate planning services or call (585) 544-3440 to make an appointment.

The Difference Between a Will & a Trust

Wed, 19 Jun 2019 08:42:06 GMT

When you contemplate leaving property to your beneficiaries, you may think that the only way to do so is by drafting a will . While this document benefits some families, others choose to establish a trust instead. If you are unfamiliar with either of these legal documents, the information below will help you understand the difference between them.

What Is a Will?

WillA will explains how you want your assets divided and other affairs—such as paying debts and taxes—settled after your death. The will can direct certain belongings—for instance, a beloved piece of furniture or an heirloom accessory—to a particular friend or family member. It can distribute the contents of a bank account between one or more people, and it can even assign guardianship of your minor children.

In New York State, a will is subject to probate if its value exceeds $30,000. Probate is a court-supervised process where a judge approves the will and distributes assets and property to the deceased’s beneficiaries. This can take weeks or months, depending on the size of the estate. However, if the will includes a 401K, an insurance policy proceeding, or a retirement account, they will not be subject to probate. Finally, it’s important to note that once a will proceeds with probate, it becomes part of the public record.

What Is a Trust?

Like a will, a trust is a method of estate transfer. Unlike a will, which does not take effect until you die, you can enact a trust either after your death or during your lifetime. By doing so, you entrust a third party—the trustee, who can be a friend, a relative, an attorney, or even a banker—to handle finances for your beneficiaries. To be valid, the trust must also include a successor trustee in case the first trustee can no longer fulfill the duty.

A trust is often used to transfer property, cash, or business to minor children, and the trustee manages the financial affairs until they come of age.

The primary benefit of a trust over a will—aside from being able to transfer property during your lifetime—is that trust property is not subject to probate court. Trusts also usually remain private.

Solid Estate Planning may require both documents as some assets may not be capable of being placed into a trust (such as a residence encumbered by a mortgage or future asset not yet realized). In any event, many Estates will benefit handsomely from some pre-planning. Our goal is to simplify wherever possible but, most importantly, ensure that our client’s wishes are respected.

To draft a will or a trust for your beneficiaries, contact Pelkey & Pelkey, PC in Rochester, NY. The firm serves clients throughout Monroe County, specializing in estate planning, healthcare proxy and living wills, and small business and property matters. Visit their website to learn more about their services or call (585) 544-3440 to schedule a consultation.

A Legal Guide to Buying Haunted Property

Thu, 04 Oct 2018 09:01:45 GMT

With Halloween on the horizon, adults and kids have ghouls, ghosts, and goblins on their minds. While it’s fun to get spooky once a year on October 31st, most people don’t want to consistently face creepy frights or live in a haunted house. Unfortunately, if you aren’t careful when purchasing property, you may find yourself doing just that. Find out how we, at Pelkey & Pelkey, PC can help you avoid this scary scenario.

Hire an Independent Engineer to Conduct a Complete and Thorough Inspection of the House

Although most realtors recommend good competent engineers, we suggest that you select your own engineer so that you can be assured that the engineer is exclusively representing your best interests. We’ve seen occasions where the engineer is reliant upon the realtor for business leads and accordingly, subject to the interference of the realtor (and remember the realtor only gets paid if the deal closes).

Always attend the inspection in person so that you may engage in a meaningful dialogue with the engineer. So many times we see a written report that is misinterpreted by the parties.

Insist Upon a Full and Complete Property Condition Disclosure Statement From the Seller

Review the document carefully. If a seller who has lived at the property for a significant period of time suddenly declares: “we don’t know”, we suggest they are actually saying, “yes, but we don’t want to tell you”. Perhaps it’s time to put on your sneakers and RUN, DON’T WALK. In any event, make sure you provide a copy of the PCDS to your engineer.

Demand That Both Realtors Attend the Final Walk-through Before the Closing

We find it to be in the best interests of all parties if both sides have their realtors present at the final walk-through so that any remaining issues can be ironed out prior to the closing. Hope this helps and good luck.

If you need a real estate lawyer in Monroe County, put your trust in Pelkey & Pelkey, P.C.. Bryan R .Pelkey brings more than 30 years of experience to this law firm. He believes in providing his clients with personalized, focused attention. From estate planning to small business law, he handles an array of areas. Find out more about his experience online . Call (585) 544-3440 to schedule a consultation.