Plan, Protect, Preserve

By Sandy Young-Brady ◆ Photos by Jessica McCafferty

John Niles, Evan Bracy and Nick Bracy

For most people, estate planning sits on a long list of things they know they should do, ranking right up there with organizing their files and cleaning out their basement. It’s one of those things no one really wants to think about. Life is busy, families are growing, bills are due, businesses need attention. Retirement seems far away and death, or tragedy, happens to others — not to you.

To learn about the whys and hows of estate planning I spoke recently with Evan Bracy, a North Country native who has practiced law in Plattsburgh for over 32 years. He, along with other lawyers in the firm of Niles & Bracy PLLC, handle a significant amount of estate planning and probate work on behalf of their clients. “I don’t know that estate planning is more important today than in years past,” he began. “Planning for the unexpected has always been important. Estate planning is not about predicting the future. It is about preparing for the fact that the future can change without warning.”

While many believe estate planning is only for the rich or the elderly, Bracy’s position was straightforward, “Every adult should have an estate plan.” That includes a young person with limited assets, no spouse and no children. It may seem unnecessary for someone just beginning adulthood, but everyone may have a bank account, a vehicle, personal belongings, digital accounts, or strong wishes about who should make decisions if they cannot.

According to Bracy, estate planning should begin at the ripe age of 18. That may sound surprisingly young, but legally, adulthood changes everything. Parents who have spent years making decisions for a child may no longer have automatic authority to make medical or financial decisions.

At its most basic, an estate plan does not need to be overly complicated. Bracy identified four essential documents every adult should consider: a Last Will and Testament, Power of Attorney, Health Care Proxy, and Living Will. Together, those documents can help answer the most important questions a family may face. Who handles your finances if you cannot? Who makes medical decisions? What are your wishes regarding care? Who receives your property when you die?

A spouse, child or other family member has no automatic legal authority to make decisions for an incapacitated person without the proper documents in place. That means a family already dealing with a medical crisis may also have to deal with legal constraints at the worst possible time.

Without legally recognized documents, families can be left not only grieving, but confused and frustrated – often causing division within families. That division is something estate planning attorneys often see. Bracy said the most common disputes after someone passes away are among surviving children. Those conflicts can be especially painful when a will treats one child differently than another, or when a will is changed near the end of someone’s life and questions arise about legal capacity.

What should families do? Bracy’s answer was direct: “Communicate.” When appropriate, he encourages parents to include children or other beneficiaries in their plans and explain decisions that could otherwise lead to hurt feelings, resentment or suspicion later. A difficult conversation during life may prevent conflict after death.

For business owners, the stakes can be even higher. Estate planning and succession planning are closely connected. A business owner’s death, without a succession plan, can create immediate uncertainty. In some cases a business may not be able to continue to operate. Bracy noted that certain businesses require someone with a specific professional license to remain open. If the owner is the only person with that license, the result can be closure, disruption for employees and customers and a reduced value of the owner’s estate.

In addition, Bracy said owners often fail to identify and prepare the person who could operate the company in the event of a death. Family-owned businesses need to begin succession planning early. The familiar adage, “Business and family don’t always mix,” exists for a reason. A poorly crafted or nonexistent succession plan can threaten both business and family relationships. In those situations, planning is an act of preservation for a life’s work.

Bracy explained that despite all of this, many people still delay estate planning. People are busy and few want to acknowledge death or incapacity. They assume there will be time later. But most people also know of a situation where loved ones were left to sort through a mess because no plan was in place.

In recent years, one of the biggest changes in estate planning has not been the basic purpose of the documents, but the tools available to create them. Online legal services and artificial intelligence have made it easier than ever for people to draft documents without having to meet with a lawyer or financial professional. However, while that might be more accessible, it is crucial to ensure all bases are covered. A document might look complete, but might not accomplish what was intended.

Bracy emphasized the basic goal of estate planning remains the same – to ensure your wishes are followed after death or incapacity with minimal burden and expense to those who survive you or care for you.

For those who already have an estate plan, the question becomes when to review it. Bracy cautioned that age alone does not necessarily deem a plan outdated. Plans should be reviewed when a significant life change takes place — death, incapacity, birth of a child, bankruptcy, marriage, divorce, etc.

When you are ready to begin estate planning, Bracy recommended starting by thinking about who should fill the decision-making roles. Who do you want to handle your affairs? From there, schedule an appointment with an estate planning attorney who can explain options and help put the right documents in place. His advice is, “Don’t procrastinate.”

When thinking about estate planning, it is important to remember it is about more than money, property or legal documents. It is also about reducing uncertainty and division. It is about protecting your family from conflict and allowing your business acumen to carry on as you intended. Most importantly, it is about giving your family and those you care about the gift of clarity during moments when it is needed the most.

Niles & Bracy PLLC

46-48 Cornelia Street

Plattsburgh, NY 12901

(518) 561-1980

www.nilesbracy.com