"Estate" planning for someone with no estate

June 6, 2023 9:14 AM

I'm a single middle aged woman with no children or assets. But I want to get my affairs in order. Easiest/cheapest way to do so?

I'm 40. Not planning on dying anytime soon, but I do want to get some paperwork filed so that my sister can have medical power of attorney to make any medical decisions for me and overall power of attorney so she can access anything of mine that she needs to in the case that I am incapacitated or if I die. And, like, whatever else I should do, I don't even know what else I should maybe take care of--what goes into a will? I know nothing.

I do not own any property or anything of value, but I have a tiny bit of retirement savings in various accounts, plus some debt. Kind of all evens out.

I'm not looking to do anything but make everything easier for my sister to handle everything were anything to happen to me. So whatever is cheapest/easiest. Is legal zoom a real thing that I should use? Do I need to hire an actual lawyer? Is there way to find a supercheap lawyer? I'm in NY, my sister in in NC. As you may have gathered, I don't have a ton of money to throw at the issue, so the cheaper the better.

If you recommend a lawyer, could you tell me how to do that like I'm 5? I've literally never hired a lawyer in my life and wouldn't know how to get started. Most of my friends are much wealthier than mine with actual assets/estates/partners/children so asking them for estate lawyer recommendations will probably net me someone I can't afford.

Thanks and apologies for the ignorance!

posted by greta simone to Law & Government (24 answers total)

Do you have an EAP through work? Basic estate planning (exactly the kind of stuff you're talking about) is one of the services offered through mine.
posted by mskyle at 9:24 AM on June 6, 2023 [1 favorite]

Response by poster: Unfortunately no, my employer does not offer that.
posted by greta simone at 9:27 AM on June 6, 2023

One very simple thing you can do is to make your sister the beneficiary of your retirement accounts. This way anything in those accounts goes directly to her & does not become part of the estate and subject to probate.
posted by mr vino at 9:31 AM on June 6, 2023 [20 favorites]

Best answer: I am a lawyer, but not your lawyer and not licensed in NY. I would suggest you use the Brooklyn Bar Association referral service to get you connected with someone. I don't recommend legalzoom because that may end up costing your sister down the road as she deals with your estate. If you're low income, Access Justice Brooklyn may also be able to help. A friend who is an estate planning attorney uses attorneys from the National Association of Estate Planners and Councils if she doesn't have a specific referral in someone's area. I linked to their search for lawyers near a Brooklyn zip code.

Pretty much any estate planning attorney should be able to help you with this, these are pretty standard requests and I doubt it would be too expensive.
posted by notjustthefish at 9:35 AM on June 6, 2023 [1 favorite]

You may also be able to set up a Transfer on Death (TOD) to ensure that your sister will automatically and immediately get access to your bank accounts without having to go through probate. My parents did this through their family lawyer (also made me POA for property and health at the same time) and it saved so much hassle when my dad passed away. (I'm in Illinois--your state may have different regulations). As I remember, it was not a huge cost to do this.
posted by bookmammal at 9:37 AM on June 6, 2023 [8 favorites]

MeMail me if you'd like me to introduce you to my estate attorney in Eastchester. I'm older than you and my situation was more complicated, so I can't estimate what she would cost. You could discuss that with her directly.
posted by JimN2TAW at 10:20 AM on June 6, 2023

IANAL. I had to get durable power of attorney and medical power of attorney for my disabled brother in Brooklyn in 2020. And he ultimately died. There was less than $2000 in cash assets, plus an apartment worth of tangible personal property (worth maybe 10k) that I disposed of. Honestly, I wouldn't bother with a lawyer if you don't have any assets. You could go ahead and make your sister the beneficiary of anything you want her to have, like your bank and retirement accounts, and any life or AD&D policies you might have through work.

I used Legal Zoom in 2020 to get durable POA, medical POA, and an advanced medical directive for my brother. Each state has their own specific POA forms. Legal Zoom has them all.

Check with your bank that it doesn't have its own POA forms. My brother's bank (Santander) would not honor the NY-specific durable power of attorney he signed. I had to redo a Santander-specific POA that they then kept on file.

If you become gravely injured or die, using the signed notarized POA forms, your sister would be able to get a debit card/checks in her name on your debit/checking account and pay for funeral expenses, miscellaneous expenses (moving your stuff, for example), and any outstanding debts. When needed, she would give copies of the POA to whomever needed one, such as a funeral home, your utilities, your landlord/mortgage company, any lenders, etc. Those entities would immediately start communicating with her. I also learned from a NY attorney advising me at the time, and a VA one after his death (the one who wrote his will), that in NY you are not required to file probate when a person dies if there is no estate to speak of. i.e., Don't open an estate if there's no activity the estate needs to undertake.

I have no experience with a last will & testament in NY. If I were in your shoes, I would likely also just use the one from Legal Zoom. My first will (not in NY), also for a paltry estate at the time, was written by a lawyer friend who used a generic state-specific template.

Last tip: NYC has many, many 24-hour mobile notaries for when you need to notarize something in a rush and/or outside of normal business hours.
posted by ImproviseOrDie at 10:30 AM on June 6, 2023 [2 favorites]

Here's what I did. Time estimate: 1-3 hours, no lawyer
1) Got the NOLO book on writing a will out of the library and downloaded their basic template, gave the signed copy to multiple relatives.
2) Set up Person as the direct beneficiary for my retirement accounts and life insurance account (work provides mine) so that they get the money quickly/easily
3) Filled out a living will and gave the copy to multiple relatives and my doctor's office

Another thing I think is so important is disability insurance. Work provides that to me right now, but previously I purchased my own plan.

Things my financial advisor advised me to skip: long-term care insurance (it's a racket), buying a life-insurance policy (not the best use of funds if you don't have dependents)
posted by veery at 10:30 AM on June 6, 2023 [5 favorites]

There is one reason a life insurance policy can be a good idea if you don't have dependents: funeral/burial expenses. Your retirement funds may be enough to cover that, but that's another thing to think about if they aren't.
posted by FencingGal at 10:42 AM on June 6, 2023

I agree that a transfer on death agreement for your retirement assets is a good idea. Most brokerages will allow you to set one up online - no lawyer needed at all. The most I've ever had to do for mine is sign a form and scan it.

That said, you should warn your sister that a transfer on death agreement does not relieve her of paying for your debts. Your estate is still liable for your debts after you die, even if part of that estate is transferred on death to your sister. She may consider doing something like keeping the transferred money in a separate account for a while in case lenders come after her for your debts after death. The lenders may not do so; it may not be worth it for them. That said, in the case where you happen to die with more debt than assets, your sister would want to have a good record of the entire extent of the money she received.
posted by saeculorum at 10:51 AM on June 6, 2023

Response by poster: Already have all my existing accounts listing my sister as beneficiary or payable on death, as well as my paltry employer-provided life insurance.
posted by greta simone at 11:18 AM on June 6, 2023 [3 favorites]

...a transfer on death agreement does not relieve her of paying for your debts.

IANAL, but to clarify, I'm pretty sure that the requirement to pay debts is only up to the amount of the estate's assets. That is, don't spend an inheritance before you pay off the deceaseds' debts, but if the debts are greater than the assets, the heir is not liable for the unpaid debts. ("Generally, no one else is required to pay the debts of someone who died.")
posted by Mr.Know-it-some at 11:39 AM on June 6, 2023 [2 favorites]

Best answer: When my husband had surgery a few years ago, we looked into medical power of attorney and it's something you can do very easily in New York State using the state-provided Health Care Proxy form. It doesn't even require a notary - just two witnesses. I believe we got the original recommendation here on the green, but it's also what the hospital where he had his surgery recommended we use.
posted by okayokayigive at 12:15 PM on June 6, 2023

Best answer: I edit books on New York estates law and am a JD, but not a practicing attorney (I've been in legal publishing for over 30 years). This is not legal advice--I'm just setting out the law.

New York's Durable Power of Attorney is statutory, so it is a form with options to check. You can find it almost anywhere online. Here's one.

This is the statute that sets out the form so you can make sure the form you use is up to date. You could also just copy the form right out the statute, I suppose.

If you don't have a will, and have no children and no living parents, and no other siblings that you don't want to get your money, it would pass to your sister through intestate succession. Estates, Powers and Trusts Law 4-1.1 gives the order as: (1) spouse; (2) if no spouse to your children; (3) if no children or spouse to your parents; (4) if none of the above, to your siblings. Anything you didn't leave you sister through other means would go through small estate administration.

New York's Unified Court System website has a really nice explanation of small estate administration, with forms (a DIY forms set with detailed explanation on how to use it). It won't matter that your sister is in a different state. The closest relative is usually appointed to be voluntary administrator of a small estate.
posted by ceejaytee at 1:01 PM on June 6, 2023 [4 favorites]

Best answer: Make sure your sister has all your paperwork, as hard copies and electronic copies.

Yes, you can create your will with online forms, but be sure the final product meets NYS regs. (Your will does need to be in writing, with two witnesses attesting to your signature. In the space of 30 days, the witnesses sign and date the document and add their residential addresses below their signatures. It's not a legal requirement, but you'll want to have your will notarized.)

NYCourts.gov: When a Person Dies with less than $50,000
When the person who died (the Decedent) had less than $50,000 of personal property then it's considered a small estate, and is called a Voluntary Administration. It does not matter if the Decedent had a Will or not. Personal property is things that belong to a person not including real property. Here are examples of what is and is not a small estate and where other proceedings should be filed.[...] In some cases, there is a possibility of a wrongful death or other lawsuit in the future. In that case, a probate proceeding or an administration proceeding should be filed instead even if there is less than $50,000 of personal property at the time of Decedent's death, because of the chance of winning a large amount of money from the wrongful death or other lawsuit on behalf of the person who died.

How to Select Your Advanced Directives in New York State (Health Care Proxy and/or Living Will)

Something to know: if you have an IRA, with a non-spousal heir there are certain stipulations. Please read the IRS beneficiary breakdown regarding minimum distribution rules and the "Eligible Designated Beneficiaries" category; with few exceptions, all money from the account must be withdrawn by Dec. 31 of the 10th year after the original owner's death. Your sister remains your heir; if she did not fall into the "EDB" category at the time of inheritance, she could follow a minimal distro schedule over that decade to reduce tax burden.

Something else to know, which may not apply: for my mom's (non-IRA-designated) investment accounts, she was advised to make me a 'joint owner' as well as her transfer-upon-death beneficiary. In the event of her incapacitation, I could access the account to sell stock and cover out-of-pocket medical care.

Please remember that if you move out of state, you'll likely need to re-file your documents to conform to the new state's laws.

[As an aside, this is a tremendously loving thing to do for your sister, and I hope she is making similar planning decisions. Trying to do right by a loved one in medical crisis is terrible, and having the medical directive in place helps. Grieving is ghastly, and unnecessary legal wrangling makes it worse.]
posted by Iris Gambol at 1:04 PM on June 6, 2023 [2 favorites]

I know you want to keep costs down, but honestly, spending an hour with a lawyer at this stage is probably really good value for your money. You can ask all the questions you can't ask of LegalZoom or pre-printed forms. It shouldn't cost too much money--a few hundred dollars (most likely well below $500) would be my guess, but that's based on Canadian experience. Note, I'm in a very similar boat as you are when it comes to my life situation.

As to what kind of questions, for example, a medical power of attorney isn't just one thing. You can direct how much/little intervention you'd like, and my lawyer walked me through the options.

Yes, it would have been nice to have everything arranged for a lower price, but it put my mind at ease that i was able to talk everything out with somebody, come home discuss it all with my sibling, and then go in and make everything official and know that there is somebody who would be helping to take care of things, should anything happen.
posted by sardonyx at 1:06 PM on June 6, 2023 [1 favorite]

I used Rocket Lawyer (for free) a couple years ago for a will, POA, and durable POA. I found it very helpful, and it lets you edit the documents and provides sample verbiage to help you. You can also hire a lawyer through the platform to look over your documents, although I didn't do this. I got the documents notarized at a UPS Store, I brought friends but I think employees will witness if needed.

My parents' financial advisor (like, whoever they were assigned by the investment company) suggested I get a will while they were getting their affairs arranged. It was a good time to think / talk about my wishes.
posted by momus_window at 1:56 PM on June 6, 2023

My husband and I have a very minimal estate and no kids. We paid a lawyer (in a smallish Midwest city) about $500 to put a will and medical directive together. It was very easy and took very little time. The goal was to make things easy on my sister, who would be dealing with the paperwork.
posted by PussKillian at 2:16 PM on June 6, 2023

Best answer: A friend has a project called Dying Kindness, where she has compiled all the information you need for this. She offers a free outline for a Death Binder, for all the forms and paperwork you might need, as well as online workshops, and a podcast. Look through her stuff and see what might be applicable for you. I did her online workshops earlier this year and they were really helpful for thinking through stuff and I feel much more organized now.
posted by gingerbeer at 3:24 PM on June 6, 2023 [9 favorites]

Honestly, for a nonexistent estate and with little budget to address the problem, veery has it. I myself just used a book, which conformed with what I remembered from the NY bar exam, but the last edition of that one was 20 years ago, so I'm not sure it's safe to recommend it. Template will (remember that the two witnesses can't be heirs), fill out the NY durable power of attorney form, make your sister the beneficiary on your retirement accounts, set your bank account to TOD/POD.

For someone in your situation, the POA has far more potential impact than the will. The only reason I even bothered with a will at that time was that I disapproved of one of the people who would've been a default beneficiary under NY's intestacy rules getting even a dime of my (nonexistent) money, but I'd had enough health concerns to want to make sure health care decisions were addressed. When it comes to the will, bluntly, what is the worst that's going to happen? People think wills must be these immensely complex and fragile things, but if you die intestate and don't have living parents, children, or a spouse, your siblings would inherit everything anyway.

If you really want to help any potential executor, keep a list printed out somewhere of your current bank and retirement accounts, insurance policies, and any major debts (car loan, mortgage, student loan). If you use gmail, set your sister as your survivor. If you use Apple devices, set her as your Legacy Contact and make sure she has the code somewhere safe. Finding all the financial information is 75% of the struggle for the executor of a small estate.
posted by praemunire at 4:10 PM on June 6, 2023 [2 favorites]

Long term care insurance may or may not be a racket, but my mother paid a couple thousand dollars a year in premiums for it (she could easily afford that amount) and now it is paying all of her memory care/room and board expenses. So there are benefits, especially for people (like my mom) who have a family history of dementia.
posted by lhauser at 5:54 PM on June 6, 2023 [1 favorite]

Fill out Five Wishes.
posted by Miko at 7:55 PM on June 6, 2023

Best answer: Maybe start here? Get your shit together
posted by Bron at 7:04 AM on June 7, 2023 [2 favorites]

Also came to recommend “Get Your Shit Together” as a non-overwhelming place to start.
posted by ocherdraco at 4:23 AM on June 8, 2023