New York Estate Planning Lawyer Blog

June 24, 2013

Forbes on Gifting – When an Inheritance Can’t Wait

One of the most common questions that local families ask related to estate planning and assets protection involve gifts: Whether to give them, when to give, how much, and in what form.

Of course, no two situations are identical, and so it is impossible to list a set of rules regarding when and how large-scale gifting should be done in every case. However, a Forbes article this week on the topic provides a good starting point for New York families to familiarize themselves with the basic concept and major issues to consider.

Helping Children Now

June 20, 2013

Serving As Executor — Not for Everyone

by Ettinger Law Firm

Most New Yorkers know that in the event of a passing there are “paperwork” details that must be worked out. Property must be divided up, accounts must be closed, and other errands must be completed. Time and again, however, families grossly underestimate the complexity and scope of these duties; many end up spending months and months mired in chaos while trying to handle everything.

That is why it is critical to think carefully before making choices about the “executor” of an estate (or agreeing act as executor yourself).

A recent Buffalo News article made this same point, reminding readers that serving as an executor is not something to take lightly. Serving in this role is far different than simply being trustworthy, and it requires much more time and understanding than simply having been a close friend or relative while one was alive.

June 18, 2013

Same-Sex Marriage Rulings Coming Soon – May Cause More Complications

by Ettinger Law Firm

Anticipation is building among marriage equality supporters (and opponents), as decisions from the U.S. Supreme Court on two major same-sex marriage related cases are set to be released either this week or next. As we have previously discussed, one case relates to the Defense of Marriage Act (DOMA) which has direct implications on the rights (and estate planning) of all same-sex couples in New York.

DOMA prohibits even same-sex couples who are legally married in states that allow it (like New York) access to all federal benefits pertaining to marriage. This includes well over a thousand distinct items, like Social Security, preferred tax breaks, immigration privileges, and more.

Many are hoping that the Court strikes down the portion of DOMA which denies those benefits, finally placing all married same-sex couples on the same footing as their opposite sex counterparts. The court may release its ruling on that case, Windsor v. United States, as soon as this Thursday.

June 13, 2013

U.S. Senate Report on Proposed Tax Changes May Affect Retirement Planning

by Ettinger Law Firm

It is notoriously foolish to take Congressional reports, proposed legislation, and similar matters as anything more than mere possibilities which may change federal law. For every piece of legislation that actually makes it into law, there are a hundred others that end up nowhere. Still, those who have an interest in certain issues, like retirement planning, may find value in examining the different ways that elected officials are considering modifying current rules.

For example, recently staff members of the U.S. Senate Finance Committee issued a report that outlines many different tax reform ideas that members of the committee will consider when they debate proposals this cycle. The report introduction explains that “The options described below represent a non-exhaustive list of prominent tax reform options suggested by witnesses at the Committee’s 30 hearings on tax reform to date.”

A full online copy of the document can be found online here.

June 10, 2013

Luxury Services for the Afterlife

by Ettinger Law Firm

The Sun Sentinel recently published an interesting story on the growth of luxury services for those making funeral and burial decisions. While it may seem strange to some for such focus on high-end items in the afterlife, those familiar with estate planning appreciate the intensely personal nature of these decisions.

For example, the article includes an interview with one man who decided to build a large mausoleum where dozens of his family may one day be buried. The retiree explained: “I was making good money, and I could afford to do that for my family. It was the idea that most of my family preferred to be buried above ground rather than in the ground.”

Industry insiders working on these burial details note that there is a significant market for more high end plots and amenities. Some include large indoor mausoleums, granite-walled locations and even entire private burial estates with air conditioning provided for visiting guests.

June 7, 2013

Estate Planning for Spouses: The Basics

by Ettinger Law Firm

This week Forbes published an article that outlines the basics of how to fund an estate plan for spouses. The story is a helpful reiteration of many of the basic issues that are common for all New York couples thinking about their future and trying to create security no matter what the future holds.

Helpfully, the story explains how estate planning is not the creation of a stack of legal documents that are signed and then stored until needed. Instead, the process is far more comprehensive and involves examination of all of one’s assets, wishes, legacy interests, elder care goals, and more.

As a general matter, on the estate planning side, one of the main goals is avoiding probate at all costs. That means that something like a last will and testament is inefficient. Instead, for most New York couples it is best to create a series of revocable living trusts which are far superior, allowing property to be protected and passed to others without the need for court intervention. After the trust is created spouses transfer property directly into the trust.

June 5, 2013

Estate Planning Becoming Reality Show?

by Ettinger Law Firm

Epic estate planning battles–particularly involving the wealthy and famous–have long been fodder for newspapers. There have even been a few high-profile movies touching on the topic, like the recent George Clooney film, “The Descendants.” But now it appears that the sagas may make their way into yet another medium: television.

Reality TV continues to captivate audiences, and now some are looking to cast a new television show based on unique, intense, and interesting inheritance fights. The Trust Advisor recently shared information on the project which, if it becomes popular, is sure to raise awareness of common estate planning issues even more.

The show is still in the early stages of development, but it is clear that a large TV production team is looking for families to be filmed as their inheritance issues and planning details are sorted out. These early reports suggest that the show will center on inheritance and trust disputes among wealthy families. The purpose, one presumes, is to find families with the most unique issues, including family businesses, generations-long dynasties, and large personalities. The filming (and packaging as a television show) will likely highlight both the characters themselves as well as the unique processes involved in settling estate fights. While it may seem common knowledge to those of us working on these affairs, it is easy to forget that for most community matters, estate planning issues are foreign.

June 3, 2013

Trying to “Woo” Inclusion Into The Will of Heiress Huguette Clark

by Ettinger Law Firm

The New York Times shared a story late last week on developments in the settling of the estate of copper heiress Huguette Clark. It is a reminder of the sensitive nature of estate planning, particularly for those with wealth, and the lengths that all involved parties may go to influence one’s decisions regarding inheritance.

As many know, Ms. Clark was very reclusive, living the final two decades of her life at the Beth Israel Medical Center, even though for most of that time she did not actually need hospital care. According to new reports (and allegations from family members), almost as soon as she arrived the hospital engaged in a complex campaign to receive donations from the heiress. Apparently the facility had administrative officials sent to her frequently to build trust. After some time the officials, including the hospital’s CEO allegedly, began talking with her about creating a will. All of this was after officials researched the family history in the hopes of making a more personalized connection with Ms. Clark. It goes without saying that this sort of treatment is not provided to all patients at the facility.

All of this is only recently being made public as part of a high-profile legal challenge filed by some of Clark’s relatives angling for a larger share of her $300 million estate. The legal challenges began almost immediately after her death in 2011, and they are still raging. A trial in the matter is scheduled for September.

May 30, 2013

Common Mistakes when Naming Insurance Beneficiaries

by Ettinger Law Firm

Most lists of “common estate planning mistakes” include the frequent error of failure to properly update beneficiary designations. Yet, even that mistake is deceiving, because updating is just one thing to consider with these designations. Even if the names are evaluated on a consistent basis, it is still important to ensure that the person named as the beneficiary fits in with other aspects of an overall estate plan.

Fox Business recently published a story listing ten different ways that life insurance beneficiary designation decisions are made in error. The story is worth browsing to get a feel for some common issues.

For example, it is critical to name someone who can actually receive the funds. Parents may name their minor child as the beneficiary, but the insurance company will not dispense funds directly to a child. Without a trust or similar arrangements, then this designation will cause problems. A guardian must be appointed, leading to costly and timely court proceedings being necessary.

May 28, 2013

New York City Bar on Planning for Pets

by Ettinger Law Firm

The New York City Bar Association’s “Committee on Animal Law” recently released a helpful report on the many different legal issues to consider regarding the care of your pet in an uncertain future. The document offers a comprehensive examination of a wide range of issues which many fail to consider. It is worthwhile to review the whole thing if you are interested in some of the more detailed aspects of estate planning with pets in mind. A free .pdf copy of the report can be viewed online here.

The sad reality is that most pet owners give only cursory thought to what might happen to their furry friend in the event of a death or hospitalization. In most cases the extent of the planning is when an elderly individual or one with a serious illness considers another person to take ownership. Obviously that is a good first step, but it is important to ensure those wishes are actually guaranteed via legal documents. Also, identifying a new owner is just the beginning of effective planning for pets.

For example, many problems arise in the time period between an owner’s death and the admission of a Will to probate. Even if a Will includes specifics about new ownership and the providing of provisions, the intermediary time may be left open. This can cause serious problems, which provide immense stress on the animal as well as those working to handle affairs in the aftermath of the passing. Similarly, the provisions of a Will are of little use if an owner is hospitalized and alternative pet care needs to be arranged.