7 Costly Mistakes New York Families Make With Wills and Trusts
Wills and trusts are so important to New York families who want to protect their life’s work, and their family. In New York, probate court can be slow and the tax rules unforgiving. Failure to plan now can have a very negative impact on your estate and the family members who rely upon it. Wills and trusts are part of your estate planning arsenal that can help you prepare for the future.
The estate planning attorneys at Daniels, Porco & Lusardi, LLP are prepared to assist you with wills, trusts, and more to protect your assets and distribute your assets the way you want to. Avoiding these common mistakes can make a big difference.
1. Relying on a Will Alone and Ignoring Probate
Many New Yorkers believe a will avoids probate. It doesn’t. A will must be filed with the Surrogate’s Court, and the court must approve the executor before anything can be distributed. Even straightforward estates often take 7-12 months to settle.
Relying solely on a will can leave:
- Your home stuck in probate
- Bank accounts frozen
- Beneficiaries waiting for access to funds
- Family members paying expenses out of pocket
A revocable living trust is often the better tool for families who want to avoid delays, maintain privacy, and ensure immediate access to assets.
2. Failing to Fund a Revocable Living Trust
Creating trust is only the first step. If you don’t transfer assets into the trust, the trust does nothing. This is one of the most common and expensive mistakes New York families make.
Unfunded trusts lead to:
- Homes still going through probate
- Frozen bank accounts
- Delays in distributing investments
- Confusion about who controls what
3. Using Outdated Beneficiary Designations
You should always keep your beneficiary designations up to date. If these designations are outdated, the wrong person may inherit.
Common problems include:
- Ex-spouses still listed as beneficiaries
- Minor children named directly, requiring a court-appointed guardian
- Beneficiaries who have passed away
- Designations that conflict with the estate plan
New York families should review beneficiary designations every few years and after major life events.
4. Naming the Wrong Executor or Trustee
Picking the right person for this role is so important. Many families will pick the oldest child or other similar position, rather than picking the person best suited for the role.
Problems arise when the chosen person:
- Lacks financial or organizational skills
- Lives out of state and struggles with New York requirements
- Cannot work well with siblings
- Is overwhelmed by the responsibility
5. Leaving Real Estate to Multiple Children Without a Plan
New York real estate is often a family’s most valuable asset and the most complicated to manage after a death. Leaving a home to multiple children “to figure it out” is a recipe for conflict.
Common issues include:
- Disagreements about selling vs. keeping the property
- One child living in the home without paying rent
- Unequal contributions to taxes, insurance, and repairs
- Forced sales or partition actions
A well-drafted trust does more than transfer the property, it lays out how the property will be managed and what happens if owners disagree.
6. DIY Wills and Online Templates That Don’t Meet New York Requirements
New York has strict rules for executing wills. A will is invalid if:
- It is not signed in the presence of two witnesses
- Witnesses do not sign properly
- The testator’s signature is missing or unclear
- The document contains ambiguous or conflicting language
Online templates rarely address New York-specific issues such as elective share rights, probate procedures, or real estate titling. Families often discover these defects only after a death, when it’s too late to fix them.
7. Failing to Update the Estate Plan After Major Life Changes
When something in your life changes, it could have a big impact on your estate.
You should update your plan after:
- Marriage or divorce
- Birth or adoption of a child
- Death of a beneficiary
- Purchase or sale of real estate
- Significant changes in assets
- Relocation to or from New York
A plan that worked ten years ago may no longer reflect your wishes or your family’s needs.
Avoid the Mistakes and Plan Ahead: Contact a Qualified Estate Planning Attorney in New York
Doing it the right way now can make such a big difference for the future. Protect everything you’ve worked for, and the ones you love most. Put together a comprehensive estate plan with the assistance of a qualified estate planning lawyer.
The attorneys at Daniels, Porco & Lusardi, LLP are ready to help. Contact us today for a consultation.