In attorney Craig A. Fine’s estate-planning coverage, that preparation connects family concerns with the practical needs of a working business. A useful conversation with counsel starts with the documents you actually have and the people who would need to use them. It should not depend on a family member reconstructing everything during an emergency.
Describe ownership precisely
For each significant asset, record the name in which it is held, where the supporting document is stored and whom to contact for a current statement or copy. Avoid using a description such as “our apartment” or “the family company” as a substitute for the ownership record. Those phrases may express how a family thinks about an asset without answering a legal question.
For a Manhattan apartment, bring the relevant ownership and building documents to counsel rather than assuming every apartment is held in the same way. For a company interest, include the ownership agreement and any amendments. For property outside New York, identify its location and the advisers already involved. Ask which matters require additional local advice.
Bring competing documents into the same conversation
A will, a trust document, an account form and a company agreement may address different parts of the plan. Ask your attorney to explain which document is relevant to each asset and whether additional steps or approvals need attention. The planning file should make inconsistencies visible before someone has to act on them.
A useful example is a hypothetical owner who intends for one child to continue the business while other relatives receive different assets. The family intention does not answer how the business interest is valued, whether another owner has rights under an agreement, or how ongoing expenses would be paid. Those are separate questions to bring to the planning discussion.
Distinguish an intended role from authority to act
Being the person everyone trusts is not the same thing as having every document needed to deal with a bank, a company or an estate. New York Courts explains that an estate fiduciary is appointed by a judge in Surrogate’s Court. Its probate guidance describes the court’s review of a will and appointment of an executor.
Discuss the proposed executor’s practical availability as well as the legal process. Can that person locate records, communicate with advisers and keep a clear account of decisions? Does the plan identify an alternative if the first person cannot serve? These questions help a family assess the work involved without assuming an appointment is automatic.
Make the business understandable to someone else
An owner may be the only person who knows when insurance renews, how payroll is approved or which customer deposits are still outstanding. Prepare an operational directory that points to the relevant records and responsible professionals. Keep access arrangements secure; an article checklist is not a reason to place passwords or private customer information in an ordinary shared document.
Separate the question of who may manage the company from who is intended to receive its economic value. Ask counsel how the company documents and estate plan address those questions together. A bookkeeper’s familiarity with the accounts or a relative’s involvement in the shop should not be treated as a complete answer about authority.
Discuss expenses and timing without guessing
Property costs and business bills do not necessarily stop when a family is dealing with a death. Bring a realistic list of recurring obligations to the planning meeting. Ask how the proposed arrangements address access to funds, recordkeeping and the sequence of decisions. Avoid treating an estimated asset value as proof that immediately available cash will cover every expense.
New York Courts describes fiduciary responsibilities that include identifying estate assets, addressing bills and taxes, and transferring property. The details of a particular estate can require legal and tax advice. This article does not calculate tax liability, promise probate avoidance or recommend a particular trust.
Review after a meaningful change
A business sale, a move, a changed family relationship or the purchase of another property can create new questions. Keep a short change log and bring it to your advisers. The purpose is to check whether the documents still describe the life and business you now have.
Related reading: Craig A. Fine on Manhattan, wills, and probate and estate administration. Editorial questions may be sent to contact@allstatemerchants.com; do not include confidential case information.
Primary sources
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Attorney advertising. This article provides general information, not legal advice, and does not create an attorney-client relationship. Laws and circumstances vary. Consult your attorney about your specific situation.
Craig A. Fine, Esq.
Attorney and founder of The Law Office of Craig A. Fine, P.C., licensed in New York, New Jersey and Florida. Contributor covering residential and commercial real estate, business law, contracts, landlord-tenant matters, litigation, wills, trusts and estate planning.
