New York Estate Planning Lawyer Blog

January 25, 2017

Social Security and Your Estate

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.

January 18, 2017

Back to the Basics – Pet Trusts

by Ettinger Law Firm

In a recent blog, we discussed pet owner’s options for naming their pets as beneficiaries in their wills. Another option for pet owners to provider for their pet after death is creating a pet trust. Pet trusts offer a wide variety of options to provide for the pet and can be used in conjunction with a will. Pet trusts are created during the grantor, in this case the pet owner’s, life, and can take effect immediately, or upon death of the grantor.

Unlike wills which leave interpreting some provisions up to the discretion of probate court, trusts are legally enforceable agreements that are carried out according to the provisions of the document. All the traditional rules of trust administration will be in effect for a pet trust as they are for any other trust. There will be a trustee named which will carry out the best interests of the maker of the trust and will be able to enforce the terms of the trust in court if necessary.

One feature of a pet trust that is distinct are the caretaking options. When establishing a pet trust, the maker can name who will take care of their pet in the event of incapacitation, who will have immediate custody upon your death, and how the animal is cared for.

January 12, 2017

Three Common Dangers of Do-It-Yourself Wills

by Ettinger Law Firm

In an increasingly digital society where we have become use to just “googling” the answers to our questions, there is no shortage of online legal advice and self-help. While some of this information can be valid and very useful, it doesn’t take the place of an actual lawyer that is able to apply the law to individual circumstances.

In fact, the ready availability of do-it-yourself legal guides on the web can pose a serious risk to people that use them, especially in the case of wills. Given how important your last will and testament is, it is essential to make sure that all details have been addressed and that all of your bases are covered so that you are able to distribute assets you have worked a lifetime for according to your wishes. According to the American Bar Association, three common dangers of do-it-yourself wills include:

Generic Forms

January 7, 2017

Back to the Basics – Probate and Non-Probate Assets

by Ettinger Law Firm

The law can often be confusing. One such term includes probate in reference to a will. It is important for people to understand exactly what probate is and what assets are required to go through probate in New York. Keep in mind that these are general definitions and examples, and your individual circumstances will often impact exactly what assets are considered probate or non-probate.

What is probate?

Basically, probate is the legal process that takes place after a person has died. Usually, the probate process begins by proving whether or not the deceased person’s will is valid if a will exists. The process may also include:

January 4, 2017

Common Reasons to Contest a Will

by Ettinger Law Firm

When a deceased individual, known as a decedent, leaves a Will, family members and friends that have reason to believe something may be wrong with that Will may be able to have a court rule that the Will is invalid in some situations. The following are examples of common situations in which a person may have reason to ask a court to overturn a Will, most of which can be avoided by working with an attorney to create a valid Will.

The Will Does Not Comply with Law

There are several specific requirements the person making a Will, known as the testator, must comply with for a Will to be valid in New York. Basically, these include:

January 3, 2017

Exploring Legacy Planning

by Ettinger Law Firm

While often used interchangeably with estate planning, legacy planning is actually a distinct approach to estate planning. While legacy planning can work hand-in-hand with your comprehensive estate planning strategy, it is important to understand its potential role in your estate plan. While estate planning includes all of your tools and strategies to devise wealth to future generations, Forbes points out that legacy technically means a bequest or gift left to an individual in your Last Will and Testament. They note that legacy planning can be a proactive part of your approach to estate planning by helping you take control of defining and achieving the legacy you wish to leave behind.

Dispelling Common Myths

The article from Forbes sought to dispel some of the common myths surrounding legacy planning. While conversations about estate planning in general are never easy, legacy planning can often carry its own negative connotations. Some of the most common myths surrounding legacy planning include:

December 29, 2016

Medicaid & New Healthcare Plans

by Ettinger Law Firm

As the United States prepares to have a new president take office in 2017, millions of Americans are wondering what will happen to their health insurance coverage under Obamacare. Obamacare was enacted in order to provide coverage to those citizens who did not previously have coverage due to ineligibility or loss of coverage, with the goal of bringing down the cost of health insurance generally, and reducing costs regardless of preexisting conditions. While it was a widely contested issue between Republicans and Democrats, now that a Republican president will take office, plans are being made to repeal Obamacare.

Those in favor of Obamacare have raised question about what the 25 to 30 million people who now have insurance through the government program will do when coverage is stripped, especially since many of those are elders. However, proponents of a new system point to statistics that have shown that the majority of those who obtained benefits did so through Medicaid. Of the 14 million people who signed up for Obamacare between 2013 and 2015, 12 million of those did so through Medicaid. Thus, a large portion of the population will be able to qualify for coverage through other government programs technically.

In an effort to prepare, Republicans have come up with a block grant system as an alternative to be implemented, giving states more control over the way government funding is spent in their area. The block grant alternative also lawmakers on the state level to decide how money allocated to their area through Medicaid is spent, by allowing health needs particular to that state’s citizens control where more or less money can be spent. One thing is definite for government health care coverage, it will be cut one way or another with the new presidency.

December 24, 2016

The Federal Reserve Raises Rates – What It Will Affect?

by Ettinger Law Firm

Why Were Interest Rates Raised?

The Federal Reserve has made the decision to increase interest rates by 0.25% at the end of 2016, with more dramatic increases to follow in 2017, news of which was released in December 2016. The decision was made for the interest rate increase of a quarter point to begin at the end of 2016, with two more 0.25% increases to follow over the course of the following year. This increase indicates that the labor market is tightening and thus, the United States economy is improving. Over the past decade, interest rates have only increased 0.25%, with that increase happening at the same time last year.

This change was made in response to the impressive amount of jobs that have been created and maintained over the past year and a half, with unemployment rates now below 5%, the lowest it has been since before the recession. Notably, in 2016, 180,000 jobs were added a month, which has led the Federal Reserve to allow interest rates to increase due to borrowers’ ability to pay more for loans and return to the ideal of 2% inflation. The interest rate hikes in 2017 could follow quickly after President-elect Trump’s taking to office, due to his pledge to provide growth oriented tax cuts and increased spending on infrastructure.

December 21, 2016

Company Claims to Sell Social Security Numbers

by Ettinger Law Firm

Maintaining your Social Security number is something we have all been told to keep close, and to be wary of releasing to companies unless absolutely needed. Your Social Security number are a series of numbers that help identify individuals in the United States as either citizens, permanent residents, or temporary workers, for tax reporting purposes. If closely held, this series of numbers provides an easy way for you to identify yourself for various reasons including obtaining bills, loans, applying for jobs, and when attempting to contact any government agency.

While the internet has provided us with a vast amount of knowledge, it has also provided hackers with a way of obtaining our personal data once entered into a database, for credit card processing, or many of the other reasons we use personal information. A website is recently under scrutiny when they began selling Social Security Numbers for $250 dollars each. The website guarantees that as long as the seeker of the Social Security Number has the correct name, last known address, and date of birth of the person they are looking for, they will provide the correct Social Security Number.

The way in which Peopleinfofind.com, the website behind this scheme is able to claim what they are doing is legal is by stating they they provide this information in order to help debt collectors or those who have forgotten their Social recover it or locate an individual. However, the Better Business Bureau has caught on and is now investigating their website. While it is legal for employers to verify an employee’s Social Security Number with the Social Security Administration, attempting to find someone’s Social Security Number through a reverse lookup should be seriously questioned.