New York Estate Planning Lawyer Blog

January 23, 2014

Former New York State Medicaid Inspector General Sets His Sights on Charity Regulation

There will soon be a new chief in town when it comes to monitoring the activities of New York charitable organizations. According to a report last week in the Wall Street Journal, James Sheehan was named the head of a state agency known as the Charities Bureau. This entity may not be a well-understood by most community members, but it plays a role in trust regulation and other activities which hit upon estate planning matters.

The New Chief

Mr. Sheehan is well known to many in the estate planning elder law community as the former New York Medicaid inspector general. The inspector general is charged with acting as a check on the system to watch out for misdeed and violations. It is that same commitment to enforcement and transparency in activities that Sheehan will take to the new office.

January 21, 2014

Thinking About the Un-thinkable – When Children Are Involved

by Ettinger Law Firm

According to a survey by legal services website RocketLawyer, 70% of American parents with minor children do not have a Will. The survey revealed that 76% of respondents believe that a Will is not an “urgent” matter. Parents of young children certainly must have many urgent claims on their attention. Many of them, it seems, are not inclined to give any consideration at all to the horrible possibility that they may not be around to raise their children themselves.

What would happen to your children if the unthinkable did happen and you were no longer there to care for them? If your children have two parents in their lives, then you might think that the chances of both parents dying in a common accident are too remote to merit serious consideration. Still, remote as the chances may be, we know that it does happen. Every day, couples face deadly risks together. How many times have you and your spouse found yourselves in a place where some quite plausible accident might befall you both? A car accident? A plane crash? A house fire? Upon reflection, you might discover that you face the risk of common accident almost every day.

Protect Your Child’s Future

January 16, 2014

Do-It Yourself Estate Planning Problems: Transferring Real Estate

by Ettinger Law Firm

There are some tasks where the “do-it-yourself” approach makes sense. This includes tightening a leaky pipe under the sink or changing the headlight bulb on your old car.

With those tasks, it is clear right away if your skills were up to the challenge and you did it correctly. If the sink still leaks or the light is still out, then you know that your efforts failed and you may need to call in a professional.

But there are some challenges where this “safety net” does not exist, and where do-it-yourself attempts can cause serious, irreparable harm. That is certainly the case with estate planning. Crafting a plan to transfer assets and save on taxes is delicate in that the only time when it will be used is at the very moment when it cannot be changed–after a passing. In other words, there are no “do overs” with estate planning, and so it is essential to have the aid of an experienced estate planning lawyer when making decisions about these issues.

January 15, 2014

Disorganization & IRA Inheritances

by Ettinger Law Firm

Many New Yorkers invest a sizeable portion of theirs assets into IRAs–retirement accounts to fund their golden years after their work life is over. Of course, no one knows exactly what their future holds, and so it is common for IRAs to contain significant funds upon one’s passing. Deciding who will receive those assets is a critical part of estate planning.

Unfortunately, as discussed in a recent Forbes article, sloppy planning on that front, which leaves designated beneficiaries in the dark, may ultimately cost those beneficiaries their inheritances.

Make Your Wishes Known

January 13, 2014

Favorable New York Estate Tax Laws on the Horizon?

by Ettinger Law Firm

New York State, known as one of the heavier tax-imposers in the country particularly when it comes to estate tax, may soon be more appealing to retirees. New York may be following on the heels of the federal government’s revamped estate tax codes, which raised exemption amounts to levels that effectively omitted the vast majority of individuals and families from an Uncle Sam estate tax hit. The New York State Tax Relief Commission issued a December 2013 report that proposes changes in 2014 to lower the highest estate tax rate and raise the exemption amount to the same levels as that imposed by the federal government.

The Potential for Major Estate Tax Relief

The federal government and seventeen states impose taxes on estates upon the death of the individual. Each exempts a certain amount of an estate’s net worth from these taxes, although these amounts differ state to state. Thanks to the passage of the American Taxpayer Relief Act of 2012, starting in 2013 the federal government began operating under new rules for estate taxes that significantly increased the exemption amount and provided that this value would be indexed each year for inflation.

January 10, 2014

The Changing Expectations of Baby Boomers

by Ettinger Law Firm

It is now such a quaint notion: Find a job with a steady company. Spend decades working for this same business, perhaps moving up the ranks over the years. Cash in your chips around age 65, with a steady pension or stable account from which to draw funds for the rest of your days.

While that model may still be followed by a rare few, for most New Yorkers, their career and retirement path is far different. Most notably, retiring to a life of comfort at age sixty five is nothing more than a pipe dream for many nearing that mark today.

Changing Expectations

January 8, 2014

Last Minute Gift? Cashing A $100,000 Check

by Ettinger Law Firm

Estate planning disputes can arise in any situation and based on any number of facts. However, one situation where disagreement is far more likely to arise is when planning steps are taken, gifts are made, or other actions pursued while an individual is on their death-bed or known to be very sick. Naturally, observers are skeptical of these actions, because they are more likely to involve fraud, mistake, coercion or other means.

That does not mean that all death-bed actions are unenforceable. On the contrary, many Wills are and signed and trusts created at just this time specifically because one wishes to get their affairs in order near the end. However, because of the potential for abuse and the natural skepticism, estate cases frequently involve last minute actions.

Was It a Legitimate Gift?

January 6, 2014

Estate Lawsuit Reinstated Involving Claimed Executor Fraud

by Ettinger Law Firm

Famed rock music promoter Bill Graham made his name as the organizer of popular music festivals and concerts. His events are credited for launching the careers of legendary groups like the Grateful Dead, Jefferson Airplane, the Eagles, and many others. Unfortunately, Graham’s life was cut short over twenty years ago, as he died in a helicopter crash in 1991.

In a testament to the longevity of many estate battles, just last week, a lawsuit involving Graham’s estate was revived by a federal court. The case is yet another reminder of the need to be very careful about all aspects of estate planning–from use of trusts to selection of executors–in order to give your family the best possible chance of handling these matters without conflict.

The Estate Battle

January 2, 2014

The Basics: The Importance of Living Trusts in Estate Planning

by Ettinger Law Firm

An important element of estate planning is ensuring the financial security of your family after you are gone. Like most people, we have worked our lifetime to provide financial stability for not only ourselves but our loved ones. An easy, burden-less way of providing for your loved ones is through a living trust.

As outlined here, a living trust holds many advantages compared to a will. Establishing a trust is fairly easily. Upon creating the living trust agreement, you essentially transfer a portion, or all, of your assets to a trustee. To retain control of the assets, people sometimes name themselves as the trustee. A grantor must name beneficiaries to the trust who will inherit the trust upon your death. Establishing a living trust bank account will allow you to solidify your savings while also easing any financial burden on your beneficiaries. The provisions of the trust can always be changed, or if you have second thoughts the entire trust can be revoked.

A living trust provides three important factors. Firstly, living trusts avoid the probate process. At the time of the person’s death, the assets of the trust will pass directly to the named beneficiaries. Secondly, living trust provide privacy that wills cannot by avoiding probate. A last will and testament that has been admitted to probate becomes a public record that anyone can freely see and read. In contrast, a living trust agreement, the property, and the beneficiaries remain private. Lastly, a living trust avoids a will contest. A living trust goes into effect the moment it is created, and a contestant must prove the grantor was incompetent or under the influence at the time the trust instrument was signed and the assets were transferred. This is a very hard, possibly impossible, burden to overcome.

December 31, 2013

A Court Order Delays Life Support Termination

by Ettinger Law Firm

Legal battles between families and hospitals over whether to disconnect life-support systems are nothing new. Optimistic family members plead with hospitals and insurance companies to keep their loved one on life support, while doctors argue the person has already died and the machines are the only thing keeping the heart beating. Such disputes gained national media attention when a California court blocked the hospital from disconnecting life support from a 13-year-old girl.

Jahi McMath checked into Children’s Hospital & Research Center in Oakland, California for a routine tonsillectomy to treat her sleep apnea. After the December 9 surgery, Jahi’s family said Jahi woke up and appear stable. Jahi then asked for a popsicle. Shortly thereafter, Jahi started bleeding profusely from her mouth and nose. Jahi went into cardiac arrest due to a lack of oxygen to the brain and was placed on life support. Three days after her surgery, a CT scan of her head revealed that two-thirds of her brain was swollen and she was declared brain dead.

Authorities from the Oakland coroner’s office were told of Jahi’s death, and began preparations to obey their obligation of investigating the cause of death. Although the coroner can request termination, Children’s Hospital’s policy is to work with the family to determine when the termination will occur.