Have Your Financial House in Order
Most of us intend to pass our assets and wealth on to the people we love. The problem is many of us have not taken the steps necessary to legally express those wishes. If you are one that hasn’t or know a family member that hasn’t, now is a good time for you to do so.

Here are a few things to consider.

What is your estate?
It is what remains of your financial wealth after all your obligations (debts & taxes) are paid. In financial terms it is your net worth (all assets minus all liabilities). Your estate is usually governed by the State where you resided.

Who do you want to receive the proceeds from your estate when you’re gone?
These people are known as beneficiaries. There can be primary beneficiaries and contingent beneficiaries. A contingent beneficiary becomes the primary beneficiary if the primary beneficiary is deceased.

Who do you trust to administer your affairs when you are gone?
This can be a single person or a few. They do not necessarily need to be beneficiaries, but if not, they should be compensated. Most times, they are family members. These people are called an executor/executrix, joint owner, trustee or estate administrator, depending upon the situation and the actions to be taken.

What are the major methods of distributing your estate?

• Intestate/Probate – A state Surrogate Court managed process due to the fact the person had no legal Trust or Will (Intestate). This is the worst possible way to distribute your estate because the court (state) and the estate administrator (or court appointed representative) determine who gets what. Usually, proceeds are distributed by what is called Stirpes. Stirpes is based on heredity in a legally prescribed methodology. Stirpes omits important people in your life who are not family members (that you may want to provide for).
• Will – This is the most common method and is a legal document that expresses how and what goes to whomever you have identified as beneficiaries in your will. Generally, the proceeds are distributed on a percentage basis though you can single out specific assets to one beneficiary or another.
• Trust – This can be a living trust (continues after your passing) or not. In either case, a trust usually is in place for wealthier individuals. These tend to be more complicated and require both legal and financial advice.
• Payable on Death (POD) – This is a specific designation for bank, investment and other asset accounts, where the transfer of those specific assets in the account go to pre-designated beneficiaries. The distribution is usually on a percentage basis.
• Joint-Ownership – Usually, but not always, related to a married couple: If one survives the other, all the jointly-owned assets automatically remain with the surviving owner. They then become the sole owner.

Legally documenting your affairs has become even more important given the increased number of blended families. Making sure your estate goes to the people you want can only be accomplished by you taking the initiative to legally document those wishes ahead of time.

Our Advice
Seek appropriate advice from your legal and financial advisors. NYSUT has an annual legal program available to advise members and help create the requisite legal documents.

You can learn more here; https://memberbenefits.nysut.org/program-service/legal-and-financial/legal-service-plan.

Share your wishes with your loved ones. Prepare the necessary documents and make sure they are up-to-date and accessible to the people who will need access to them. You can access the KTFCU FAQs on End-of-Life matters anytime on our website at the bottom of our Share Savings page (What happens to an account?) or now at https://kenteachfcu.com/storage/app/media/End%20of%20Life%20website%20link%20240819.pdf

Whatever your financial need, we're here to help.