Estate Planning

3 Tips on Discussing Estate Planning with Your Parents

Published on: January 17, 2021 | by Ettinger Law Firm

While many members of the Baby Boomer generation view Millennials as self-involved, the Millennial age group has been maturing. Some Millennials are even currently in their early 40’s. This means that many Millennials are reaching a point where they are having to engage in difficult conversations with their parents about estate planning. While many people falsely believe that estate planning is only the process of designating who should receive what assets as well as how debts are settled after a person passes away, estate planning also involves deciding who should make decisions about incapacity as well as other critical end of life issues. To better help you prepare to have a conversation with your parent, this article reviews some critical estate planning discussion tips that you should remember.

# 1 – What Documents You Need to Prepare

Wills are critical for resolving issues with a loved one’s estate after they pass away. There are also other types of critical paperwork that your parents should prepare while they are still alive. These documents include things like health care proxies, living wills, and powers of attorney. Creating these documents is critical, particularly if your loved one has a history of either Alzheimer’s or dementia. You should also know where your parent stores all of this paperwork. You should additionally ask your parent to create a list of passwords for accounts.

4 Issues to Remember About “Black Sheeps” and Estate Planning

Published on: January 2, 2021 | by Ettinger Law Firm

Countless families have members who are black sheep. These individuals can end up influencing how the family passes on assets. Regardless of the situation, it is critical to evaluate and reflect on your beneficiary’s situation when it comes to estate planning. As a result, this article reviews some critical issues to consider about estate planning if you have a black sheep in your family.

# 1 – You Need Not Divide Your Assets Equally

Disinheriting a beneficiary is a more routine occurrence than many people think. There are various reasons why you might decide to disinherit a beneficiary that has little to nothing to do with that beneficiary’s lifestyle. Parents might decide to leave more assets to a special ended child. Other times, parents might have helped a house with something while the parent was alive and wants now to make sure that an equal amount of assets are passed to each child. Regardless of your reasons for disinheriting a beneficiary, it is a good idea to explain either in your estate documents in a separate document your intention for unequally dividing assets.

3 Estate Planning Strategies As You Plan Out 2021

Published on: December 28, 2020 | by Ettinger Law Firm

Unfortunately, there’s no one size fits all estate plan. This couldn’t be truer during a year when a large number of uncertainties exist about the future. The Covid-19 pandemic has changed our lives in countless ways, which includes an increased concern about end of life issues. As a result, as we begin 2021, there are some helpful estate planning strategies that you might consider implementing.

# 1 – Grantor Retained Annuity Trusts

Grantor retained annuity trusts are financial instruments that are used as part of the estate planning process to both reduce taxes on large financial gifts to loved ones. In accordance with these trusts, a person transfers property to an irrevocable trust for a certain time in exchange for annual annuity payments. At the end of the trust term, a beneficiary receives the remaining assets. Because interest rates are currently low, there is an increased likelihood that the amount passing to the beneficiary will surpass the calculated amount of the gifts, which allows assets to pass to family members without being subject to gift taxes.

How to Create an Estate Plan that Can Be Quickly Modified

Published on: December 18, 2020 | by Ettinger Law Firm

People who have an estate with various assets often need to be prepared to contend with sudden changes in both market valuation and tax laws. During the COVID-19 pandemic and an era of both political uncertainty and quickly changing markets, it can be particularly difficult to decide what assets to transfer into a trust. This article reviews some tips and strategies that you can follow to add flexibility to your estate plan so you can make quick decisions to capture the most of estate opportunities in the changing market.

# 1 – Utilize “Intentionally Defective” Irrevocable Grantor Trusts

Intentionally defective grantor trusts are best thought of as grantor trusts with a purposeful flaw that makes sure the trust creator continues to pay income taxes. An intentionally defective grantor trust can be utilized to reduce estate taxes. A grantor creates the trust, transfers investment assets into the trust while retaining the ability to reacquire assets in the trust through the substitution of other equally valuable property, pays gift tax on the transfer, and pays income taxes on any increase in the trust’s value.

4 Estate Planning Reminders During The COVID-19 Spike

Published on: December 17, 2020 | by Ettinger Law Firm

Estate planning does not always appear on people’s things to do. Living through the coronavirus pandemic as well as approaching the second wave of the COVID-19 pandemic, however, should change the urgency with which people approach estate planning. New York currently has the fifth-highest number of COVID-19 cases among the states with more than 650,000 confirmed cases. Inevitably, some families during the pandemic will only discover that they lack sufficient legal documents when a loved one dies. To avoid expensive court cases, remember that estate planning is one of the best ways to prepare for the unexpected. To help you begin considering what legal documents to include in your estate plan, this article reviews some of the most common tools that people utilize.

# 1 – Wills

A last will and testament informs the court of who you would like to receive your assets after you pass away. This document also informs the court who you would like to make responsible for ensuring that your bills are paid and that assets transfer to the correct people. If you do not create a will and have not established other ways for your assets to be handled after your death, your belongings will likely not pass to the desired people. Instead, courts will often intervene and decide about who should receive these assets.

3 Reasons Why You’ll Like Need More than a Will

Published on: December 10, 2020 | by Ettinger Law Firm

Wills are an excellent fundamental of many estate plans. If you pass away without a will, a New York court will be tasked with making the difficult decision of who should receive your assets as well as who should look after your children. If you’re like one of many adults in New York who has been forced to confront their mortality this year due to the COVID-19 pandemic, you’ve likely considered whether your will is up to date or if you’ve ever written one at all. While all estate planning should begin with a will, however, you should realize that wills are just one small piece of the estate planning puzzle. This article reviews just some of the most critical reasons why your estate plan needs more than a will.

# 1 – Wills Have Limitations Regarding Assets

Wills are estate planning documents that help you determine how matters should be handled when you pass away. You can be as specific as you’d like with wills or keep the terms of these documents open. While wills control the distribution of many assets, certain other assets pass outside the terms of wills including retirement accounts like 401(k) plans and individual retirement accounts. This means that beneficiaries listed on retirement accounts will often receive assets regardless of the terms of a will. Regular bank accounts can also have beneficiaries listed. If a beneficiary is not listed on the terms of retirement accounts, these assets will automatically pass into probate.

Overcoming the Challenge of Undue Influence

Published on: December 7, 2020 | by Ettinger Law Firm

It’s not an uncommon story. In their final years or months, a loved one decides to leave a large amount of assets to someone they have just met. Often, these estate plans defy previous orders that would have passed on assets to family members. In these situations, family members and loved ones are often left whether they can pursue an undue influence claim. This article considers the nature of such arguments.

The Legal Basis of Undue Influence Claims

In New York, undue influence describes the influence to destroy the influence of a person engaged in estate planning and substitute another plan in its place. As a result, the estate planner is compelled to decide against their will due to complexities like fear, the need for peace, or an irresistible urge.

A Quick Guide to Spousal Lifetime Access Trusts

Published on: November 30, 2020 | by Ettinger Law Firm

While the coronavirus pandemic has left many people uncertain about what the future holds, now might be an excellent time to take advantage of a historically low tax environment. Although it is unclear how long rates created by the Tax Cuts and Jobs Act of 2017 will remain low, remember that many provisions of this Act will automatically expire in 2026 provided Congress does not act to prolong them. With the matter of how these regulations will be handled uncertain, whoever wins the US election in several weeks will likely play a role in influencing the outcome of these regulations.

Due to uncertainty about how long the Tax Cuts and Jobs Act will remain in place, many people are taking advantage of both the high lifetime gift as well as estate tax exemptions to pass on assets to loved ones. Although there are many ways that high exemptions can be utilized, one of the best ways to make the most of these exemptions is through the use of a Spousal Lifetime Access Trust.

The Role of Spousal Lifetime Access Trusts

3 Ways to Transfer Property to a Special Needs Trust

Published on: November 27, 2020 | by Ettinger Law Firm

Special needs trusts perform the valuable role of keeping a person eligible for government benefits like Medicaid and Supplemental Security Income (SSI) while also paying for services in addition to what the government can offer. If you make the decision to establish a special needs trust for a loved one, many assets will likely be placed in the trust only after you pass away. To transfer these assets, there are several commonly used methods including living trusts, will, and other types of beneficiary designations. This article reviews several of the estate planning tools most commonly used to transfer property to a special needs trust.

# 1 – Beneficiary

Many different types of financial accounts including retirement plans like 401(ks) and IRAs, life insurance, and securities allow a person to assign a beneficiary of the assets. This beneficiary then receives the funds following the owner’s death. By assigning a special needs trust as a beneficiary, it is possible to pass on an asset without subjecting it to probate. Remember, you must list the special needs trust rather than your special needs loved one as the beneficiary. If you list your loved one as a beneficiary, this could end up jeopardizing their receipt of Medicaid or SSI.

Estate Planning Advice as a Surviving Spouse

Published on: November 23, 2020 | by Ettinger Law Firm

In the most comprehensive study of its kind, scientists at Harvard and the University of Wisconsin determined that within the three month periods after a spouse dies, the odds that the other will pass away during this period is between 30 to 90 percent.

As a result, each year, many couples find themselves in a similar situation. While the spouses recognize the advantage of creating an estate plan, they fail to do so. Other times, spouses create an estate plan but fail to adequately update it as time passes. To better prepare spouses for how to handle an estate plan in such a situation, this article reviews some critical issues on how to approach estate planning as a surviving spouse.

# 1 – Recognize Common Challenges