Wills

February 2, 2017

Life Estates and the Generation-Skipping Transfer Tax

When you make the decision to see an experienced estate planning attorney to make a comprehensive estate plan to safeguard your assets and provide for your heirs, it can be a confusing process filled with a lot of legal terminology that might be new for most people. One of the biggest considerations in estate planning, and often one of the most confusing parts of it, is the effect taxes will have on an estate. To help you make the most informed decisions about what route you choose in planning your estate, it is important to have a full understanding of the different types of taxes that may come into play. One of those is known as the generation-skipping transfer tax, and the following information may be helpful in understanding it.

Life Estates

To fully understand the generation-skipping transfer tax, you first need to understand what a life estate is. A life estate is a type of estate in which ownership of real property – basically, a home and the land which accompanies it – is passed to another person and ends upon that person’s death. At that time, it may revert back to the original owner or it could pass along to someone else depending on the conditions you choose to set. In New York, life estates can be an easy way to ensure real property passes smoothly upon death without the need for probate. Life estates are also exempt from the federal estate tax. Usually, creating a life estate is a simple process, as is the transfer of property upon an owner’s death.

January 25, 2017

Social Security and Your Estate

by Ettinger Law Firm

With every new change in presidential administration, there are certain to be ripple effects in national programs that reflect the new direction those programs are being geared toward. Often, there is a period of uncertainty connected to funding for many public programs, especially in times of financial crisis. One such important program that millions of Americans depend upon is social security. In today’s day and age, it is difficult for retirees to exist solely on social security, which is one of the reasons responsible estate planning at an early age can help you navigate your retirement years successfully. With potential changes to the way social security updates beneficiaries on their benefits, it may be even more important to consider a comprehensive investment strategy as part of your estate planning.

Fewer Social Security Mailings

According to Laurence J. Kotlikoff, featured expert on NextAvenue.org, the United States Social Security Administration has recently announced that it will be providing fewer earnings and estimated benefits statements to beneficiaries as it moves forward. The agency quietly announced this change as a way to save it more money, stating Congress had cut its budget by 10 percent in the last seven years even though there has been a 13 percent increase in beneficiaries. According to the article, the agency has typically mailed such statements approximately every five years to people not receiving benefits between the ages of 25 and 60, and annually every year after 60. The agency estimates reducing the frequency of such mailings will save it more than $11 million in 2017.

January 22, 2017

Protecting Yourself from Elder Financial Abuse

by Ettinger Law Firm

All too often, unscrupulous people attempt to take advantage of others. This is especially common with elderly individuals. When this happens, it is known as elder financial abuse, and it can have a significant negative effect on your estate. Recently, USA Today reported on this growing problem by discussing testimony from a hearing before the U.S. Senate Committee on Aging. Below are important steps that you can take to protect yourself and your assets.

Understand Risk Factors

When elderly people face cognitive impairment, this increases the risk that they will be taken advantage of. Additional risk factors include individuals that attempt to isolate an elderly person from their family, friends, or community. Doing so can put an elderly person at increased risk for elder financial abuse.

December 8, 2016

The Charitable Estate: Lifetime Giving

by Ettinger Law Firm

Giving to charity is an important aspect of many estates. Those wishing to give gifts in a tax efficient manner should consider the positives and negatives of certain types of gifts. Many people who are wishing to help reduce estate taxes should consider spreading gifts throughout their lifetime.

Lifetime Gifting

In most cases, it is better to give money to loved ones while you are still alive than to wait until you pass away. Currently, a person can give up to $14,000 each to any number of other persons in a single year without incurring a taxable gift. This $14,000 annual exclusion is beneficial to you and to the recipient who typically does not owe taxes on the gift and does not have to report it unless it is from a foreign source. Any gift over the $14,000 exclusion must be reported on a Gift Tax Return and spouses splitting gifts must always file this Gift Tax Return even when no taxable gift is incurred. It is also possible to make unlimited payments directly to medical providers or educational institutions on behalf of others for qualified expenses though incurring a taxable gift. This can be a bit of a loophole.

November 16, 2016

Making Your Estate Plan Your Own

by Ettinger Law Firm

Your estate plan is a way for you to make very important decisions regarding the future of your personal property, financial holdings and legacy. A proper estate plan is truly a gift. It provides peace of mind to the owner of the estate and grants family, friends, and other heirs a little piece to remember them by.

A Personal Touch

While the bulk of estate planning is comprised of official legal documents, these formalities may not be enough to convey your thoughts and wishes. Many people wish to include a letter of instruction along with their legal documents. This letter has your wishes in your own words.

November 9, 2016

What’s In a Name: Choosing a Name for Your Trust

by Ettinger Law Firm

A Living Trust is an estate planning vehicle that helps you avoid probate by transferring property to the people and charities of your choice. The assets are held in the trust’s name and not in the name of the individual. For this reason, it is important to appropriately name the trust.

The Importance of a Name

Trust names are important to consider because in order for a trust to legally hold the assets or property, the trust has to be identifiable by its formal name. This name must be distinct and separate from your name.

November 2, 2016

Estate Planning for the Single & Childless

by Ettinger Law Firm

Estate planning for families is important. It allows a person to plan for the care and wellbeing of their family members and loved ones long after they have passed. What about people who do not have families to consider? More and more people are staying unmarried; according to the U.S. Census Bureau, 45% of adults were unmarried in 2012. Many adults are also childless, either voluntarily or involuntarily. These lifestyle choices do not, however, mean that estate planning is any less necessary.

Planning for Your Self

Estate planning isn’t just about planning for the distribution of your assets after your passing. It is also the only way to ensure that your wishes are carried out when it comes to medical care, end of life procedures, and funeral plans.

October 31, 2016

Estate Planning & Financially Dependent Adult Children

by Ettinger Law Firm

According to the Pew Research Center, more Americans age 18-34 are living with their parents than in any other living situation. Over 32% of people in that age group live in their parents’ house which leads to an interesting estate planning dilemma for the parents.

While some adults who live with their parents are financially independent providing for their own daily living expenses and even paying rent, many living at home are in some way, shape or form financially dependent on their parents. This dependence can make estate planning even more important.

Discuss Your Plan

October 11, 2016

The Danger of Unrestricted Bequests and Gifts

by Ettinger Law Firm

The Inheritance Left To University of New Hampshire By A Long Time Library Employee Was Spent In A Way That Raised A Few Eyebrows

Longtime University of New Hampshire library cataloguer died last year at the age 77. As his final wish to the world he left the entirety of his estate to the university where he graduated from and worked for most of his life. What shocked many though is the size of the humble librarian’s estate: four million dollars accumulated over a lifetime working for the university and living frugally.

But while many at the University of New Hampshire are thankful for the gift, the way the administration has decided to spend it has many asking if the university is honoring the librarian’s memory. One million dollars is being used to install a new video scoreboard at a new University of New Hampshire football stadium. Many students, alumni and community members wonder if this is the best way to use the funds considering the librarian’s occupation and passion for literature.

October 9, 2016

IRS Rules Now Reflect Updated Same Sex Marriage Rulings

by Ettinger Law Firm

New Department of the Treasury and Internal Revenue Service Final Regulations Now Reflect Supreme Court’s Obergefell v. Hodges and Windsor v. United States Rulings

On September 2nd, the final regulations that reflect the holdings of the Supreme Court rulings that upheld same-sex marriage laws around the country as well as Revenue Ruling 2013-173 were released to the public. The new terms in the regulations reflect the new descriptions of marital status of taxpayers for federal tax purposes.

A Brief History Lesson