In this column, we focus on businesses, special residents and topics related to the Great Neck Peninsula.
As we approach the holiday season of Thanksgiving, Christmas, Hanukkah, and all the rest, I personally extend my warmest regards on behalf of Destination: Great Neck Ltd.
A gentle reminder of our most prized possessions and main focus– our loved ones. We all do what we can to show thanks in the here and now, but there are important ways to do so, right now, for the future. (Reality Check, ahead)
Attention must be paid
Great Neck, where our streets are lined with beautifully manicured lawns, the bagels are artisan-level, there is a nail salon at every turn–and our respective housing payments and property taxes make us question all our life choices.
But there’s a question that even the wealthiest residents might hesitate to answer at the upcoming dinner parties and soirees: “Do you have an estate plan?”
Ahh, to be rich, well coiffed and imperfect
Even among the wealthy, estate planning isn’t flawless. U.S. Trust reports that while 91% of high-net-worth people have a will, only 31% have a “comprehensive” estate plan, and almost half don’t have an irrevocable trust.
So even in our area, multimillion-dollar homes are technically being left to fate. This is especially true in immigrant communities, like ours, where the older generations are guarded and stubbornly do not discuss inheritance issues, nor plan for them.
Younger generations are generally more aware of the need for an estate plan and “saving” for retirement, but the tight-lipped seniors in their lives may need major convincing of future planning and err, their mortality. The struggle is real.
Advanced directives: The whole kit and caboodle
When we talk about estate planning, most people immediately think of Wills and Trusts—but a comprehensive plan goes beyond just distributing assets. Advanced directives and related documents ensure your health, finances, and personal wishes are honored if you can’t speak for yourself, even when you are alive.
A New York State power of attorney is a critical document, and should be in your back pocket so that down the road, if you’re ever incapacitated, your affairs can be handled by someone you trust.
Without it, the state Supreme Court might appoint a guardian to pay bills, manage investments, handle real estate transactions, file taxes, and general financial decisions. The court work can be painfully slow, quite expensive, and intrusive. Not to mention, overwhelming for families.
If you’re not married, a healthcare proxy/medical power of attorney is a must. You can designate someone you trust who understands your values and wishes for medical care, and can make decisions on your behalf when you can’t. So too, a living will, which provides instructions about medical care if you’re terminally ill or permanently unconscious. This helps to avoid family disputes and ensures your end-of-life wishes are followed.
For young households, a Guardianship Designation for Minor Children or Dependents is key, as it identifies the names of those who will care for your minor children or dependents if you are unable.
Millionaires (and billionaires) do it, obviously
Turns out, the answer is usually a big yes! to all the above for high-net households in our midst. According to multiple studies, about 77% of households with over $1 million in net worth (hello, neighbor!) have some kind of estate plan—whether that’s a will or some type of trust.
It is reported that seven in 10 wealthy Americans have at least one trust, because apparently saying “I trust you” out loud doesn’t count. Here, in Great Neck, chances are you’ve at least scribbled something down to make sure which kid gets the heirloom silverware, the Persian carpet, and all the Chanel bags. When there is a will, there is a way.
The rest of America… not so much
Meanwhile, most Americans elsewhere are winging it. Recent studies show, only 31% have a will, and only 11% have a Trust. Translation: millions of people are basically hoping the universe will sort out their stuff when they’re gone. Spoiler alert: it doesn’t.
In those cases, their loved ones, “heirs- at -law” must file a petition in surrogates court to get an administrator appointment, at great time and expense.
If you currently do not have life insurance, the “final expenses”, funeral bills, etc., could be a financial hardship for those you leave behind. Watch cable news, all the commercials featuring earnest seniors touting reverse mortgages and various insurance are compelling.
Great Neck in the numbers
Let’s talk specifics: Great Neck is known for being affluent and educated. Based on national data for million-plus-net-worth households, it’s safe to estimate that 70–80% of residents here have some form of estate plan.
Most likely, the majority of our residents in our traditional–oriented town have a will. Very simple to do for “happily” married couples, the attorney draftsperson can prepare reciprocal wills, essentially mirror images that have identical outcomes if one passes before the other.
For sure, a decent portion have Trusts, which helps to avoid the Surrogate Court’s probate process. In Great Neck, situated in Nassau County, it could take 3-6 months to get a will to probate.
That first entails filing a petition for Letters Testamentary, so the named executor in the will is granted certain powers to administer an estate. Of course, many of us, children of immigrants, might still be “winging it.” Hopefully, there is a spreadsheet somewhere, and the kids can find it.
Why this matters
Estate planning might not be as exciting as buying a fun bauble at Michele Lynn (you deserve it!) or trying the latest delicacy at Paprika and White Bear! but it’s basically adulting at mastery level.
So, take heed: Lawyering up today, with a good plan in place, brings peace of mind, minimizes family fights over who gets what, and makes sure your hard-earned legacy doesn’t become notorious. Otherwise, you just may end up in The Real Deal’s latest headlines, as a cautionary tale.
