Articles Posted in Asset Protection

It is important to parents and grandparents who are engaged in estate planning to consider the various challenges that can arise. Failure to properly take these issues into consideration can result in estate plans being jeopardized. Fortunately, in these situations, it is possible to decant a trust. This article explores exactly what decanting is and some of the reasons why people to decide to decant a trust.

Decanting a Trust in New York

For many years, estate planning involved irrevocable trusts which mean that even if a trust creator’s situation changed, it was still impossible to modify the trust. In recent years, however, many states have created “decanting” statutes that allow broken trusts to be modified. During the “decanting” process, a person laces assets in an inadequate irrevocable trust into a new irrevocable trust that has more adequate provisions. The nature of decanting statutes changes between changes. In accordance with New York law, an authorized trustee who has unlimited discretion over principal located in trust has the ability to appoint these assets into another trust. To move trusts in this manner, a person is not required to obtain consent of the beneficiaries and can do so without a court order.

After learning about IRAs, one of the most common questions that people ask is what is the difference between the various types. As a result, this article reviews some of the primary differences between Roth and traditional IRAs.

The Primary Difference between the Two Types of IRAs

With traditional IRA accounts, the money that a person contributes to their account is not considered part of their taxable income for that year. Instead, once money is placed into a traditional IRA account, the amount is capable of growing without being taxed in the way that other types of traditional income are. Instead, the amount that is placed in a traditional IRA is taxed when a person withdraws money from the account and is taxed at whatever your ordinary income tax rate is in that year. A person, however, does not receive a deduction for contributions to a Roth IRA. Instead, income tax is placed on money that is then placed into the account where the amount grows in a manner similar to traditional IRA accounts.

Estate planning involves a number of personal decisions. The best estate plans are personalized to the individual that writes them. This is why online, one size fits it all estate planning documents are often not the best idea. This is also why some people struggle to complete their estate planning goals. Even if you do not have children, it is still absolutely vital to create an estate plan because it can help achieve a number of other goals, which are discussed in this article.

# 1 – Incapacity Issues

Every adult should have an advance healthcare directive as well as a power of attorney regarding financial and legal decisions. These documents help to make sure that a person is taken care of in case they become incapacitated and can no longer care for themself. If you become incapacitated without having any estate planning documents in lace, your loved one will be required to make decisions that they think are in your best interests. Ideally, the person that is named to act in this role should be someone that you trust to make sure your wishes are fully carried out as well as an individual who is capable of weather even the most difficult decisions.

It is never easy to estate plan. For one, estate planning involves uncomfortable decisions about how your assets will be divided following your death. Estate planning, however, is critical because it avoids a number of serious obstacles including family disputes, additional taxes, and the probate process. Despite the potential to solve the numerous problems that would otherwise, some people still believe that estate planning should only be performed by the extremely wealthy. Instead, estate planning tools including trusts can be a particularly valuable tool for individuals. As a result, this article examines some of the advantages that people frequently realize by creating trusts.

# 1 – Trusts Help Outline How Assets Are Received

One of the primary benefits of creating trusts is that they allow individuals to exercise control over how their assets are divided following their death. By spelling out exactly how assets should be divided, a person can avoid any unnecessary disputes that might later arise among family members. When younger children are involved, trusts are capable of outlining the age and condition that children must be to receive assets.

personal representative named in a Last Testament is allowed to be an out of state resident only if that individual is a blood relative or a relative through an existing marriage. If a representative does not satisfy this criteria, a person is still able to use an alternative to estate administration in the form of a trust. There are several important things that a person should consider when determining who should act as their personal representative.

Tip # 1 – Trust the Person that Is Chosen

The person that is selected to act as a personal representative must have the ability to complete a task accurately and efficiently. This element is important because personal representatives are given the duty of financial responsibility over a person’s estate. As a result, the person chosen to act as personal representative should have displayed the ability to be trustworthy through other examples in their life.

One of the most common myths that exists about trust asset protection is that it is something that only the very wealthy need to worry about. In reality, many different types of individuals should consider using trusts to protect a person’s assets. Asset protection trusts are one of the best ways that individuals can protect their assets from creditors in addition to many other advantages including tax benefits. This article will review some of the important advantages that are offered by trusts as part of estate planning in the state of New York.

The Basic Structure of Trusts

While there are some significant differences between types of trusts, each trust involves three parties: a beneficiary, a trustee, and a settlor. A beneficiary is the party that receives the assets or valuable items that are placed within the trust. A settlor is the person that is tasked with making periodic contributions into a trust. A trustee is the individual that is responsible with disbursing assets from, managing, or overseeing assets that are placed within a trust.

Since obtaining the right to marry, same-sex couples have experienced some significant advancements. There are some special considerations, however, that same sex couples must pay attention to when estate planning. For one, same-sex couples must often perform extra planning to fully address. As a result, the assistance of an estate planning attorney can be helpful for these couples. This article will review five important steps that same-sex couples should follow when involved in estate planning.

Tip # 1 – Properly Plan for Children

While there are laws in place to make sure that a parent’s assets pass to their children, same-sex parents must be careful to make sure that any adopted children are properly positioned to inherit an estate. If a same-sex couple’s children are not properly provided for, a same-sex couple’s assets might pass to other family members including aunts, uncles, or other family members.

Tax preparation is one of the most important considerations when creating an estate plan. Whenever a person or business creates an estate plan, there are multiple types of taxes to avoid – inheritance taxes, estate taxes, and income taxes, to name a few. Without a proper estate plan, these taxes can eat into a large portion of the estate.

Here are several common estate planning strategies that could reduce your tax liability:

  1. Marital Transfers. If both spouses in the marriage are American citizens, then lifetime gifts or bequests at death between them not be subject to estate taxes.

Although passing an estate through probate can be an unnecessarily long and expensive process, it is usually an administrative task through which heirs receive their inheritance as the deceased saw fit to award. However, family dynamics can complicate the expediency at which executors are able to pass some estates through probate, leaving the courts, rather than the deceased in his or her last will and testament, to ultimately decide which heirs or other interested parties receive certain portions of the estate.

Instead of using the courts to settle these types of disputes, families should consider mediation as an alternative to expensive and time consuming litigation in front of judges with already heavy caseloads. Mediation is a type of dispute resolution where both sides meet with an independent party to help negotiate a settlement to the matter, out of court and without the need for extended litigation and costly legal fees.

Often times, disputes over who gets what during the probate process are the manifestation of long standing animosity between family members or individuals close to the deceased. While mediation has no authoritative decision making over who gets what, it can be beneficial because it allows both sides to keep control over their position, is less confrontational than a courtroom setting, and can preserve familial relationships by resulting in wins for both sides, rather than victory for one party and a defeat for the other.

Under state and federal laws, nursing homes can only evict patients for a limited set of reasons and are supposed to face serious civil penalties if they break the law to force residents out on the street. However, these same caregivers have very intimate knowledge of the regulatory system and often interpret resident behavior in such a manner that would allow the facility to expel an individual who would otherwise would have remain with the care facility.

While there are many reasons why a nursing home or assisted living facility may choose to evict a resident from their care, one of the all too common reasons may come down to greed as some patients services transition from Medicare to Medicaid. As a result, federal regulators have begun to step up investigation and enforcement actions against unscrupulous facilities who choose the more lucrative yet essentially illegal business practices.

In December 2017, Centers for Medicare and Medicaid Services sent memos to state nursing home inspectors notifying these departments that federal agencies would begin examining the discharge records from the nation’s 15,000 nursing homes. In 2015 alone there were almost 10,000 complaints filed by nursing home residents alleging they were wrongfully evicted from their facility. However, some elder legal advocates believe these numbers may be underreported because many more elders do not contest their eviction.

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