Articles Posted in Estate Planning

Writing an estate plan is important, but it is not a once and done process. Instead, an estate plan must be reviewed and kept up to date to reflect a person’s goals. Failure to adequately update an estate plan has the potential to result in some very serious obstacles. The purpose of this article is to discuss some of the important reasons why you should make sure to update your estate plan.

# 1 – Tax Laws Change Often

The 2017 Tax Cuts and Jobs Act had a substantial impact on estate planning law. There are also various other tax codes that change and impact tax issues related to estate planning. It is critical to make sure that an estate plan is frequently updated to take advantage of these revisions to the tax code as well as to avoid paying more in taxes than one is required.

There are a number of myths that persist about estate planning. To perform successful estate planning, however, it is critical to learn which of these myths are incorrect. Unfortunately, one of the truths of estate planning is that errors have the potential to result in complications with the administration of a person’s estate. As a result, this article reviews some of the important errors about which a person should remain aware during the estate planning process.

# 1 – Failure to Name a Beneficiary

Even though many people understand the role of a beneficiary, failure to name a beneficiary can result in a number of substantial obstacles including delays and creditor issues. There is also a risk that failure to name a beneficiary will result in a person’s estate being administered in a way that they did not desire.

There are several common myths about estate planning. One of these myths is that people who have small estates do not need estate plans. In reality, everyone has an estate. This means that even if you do not believe so or if you only have a small number of possession, it is important to remember that in the eyes of the law you still have an estate. As a result, if you do not have an estate plan, it is always a good time to create one.

A second common myth about estate planning is that it is a once and done process. Instead, a person should always make sure to periodically check an estate plan after it is created. This article explores some of the important facts that people interested in estate planning should know about making revisions to their estate planning documents.

Situations that Warrant Updating an Estate Plan

Estate planning is never an easy process. Not only does estate planning force a person to face that they will inevitably pass away some day, the estate planning process also requires a person to meet a number of requirements.

Even though they are the most common type of estate planning documents, wills are just one type of tool that is available in the world of estate planning. In some cases, people discover that trusts are a much better option. As a result, this article reviews some of the primary reasons why people select wills instead of trusts.

# 1 – Trusts Save Money and Time

Estate planning serves a valuable purpose. Done correctly, estate planning can include all of a person’s end of life goals. If mistakes are made during the estate planning process, however, an individual can end up facing countless obstacles including paying more taxes and uncertainties about beneficiaries.

In an effort to avoid some of the most common will writing mistakes, this article reviews some of the important steps that should be followed during this process.

# 1 – Listing Specific Assets

The AARP reports that 64 percent of Americans do not have estate planning documents. While “do it yourself” estate planning documents might seem attractive if you do not have an end of life plan, they are not without risks.

The advantages of “do it yourself” estate planning are clear. By performing estate planning without legal assistance, a person has the potential to save a great deal of time and money. If done incorrectly, however, “do it yourself” estate planning can lead to additional costs and other obstacles.

The Difference between “Do It Yourself” and Hiring an Attorney

At the end of March 2019, the Pennsylvania Supreme Court heard the case of Gavin v. Loeffelbein, which concerns the appointment of emergency guardians. In the case, the Superior Court held that an emergency guardianship order automatically expired after a period of thirty days.

In addressing this case, the Superior Court found that a person who is subject to an emergency guardianship is not prohibited from making decisions about his property even if a court ordered guardian has been ordered to decide these matters. As a result, the Pennsylvania Supreme Court vacated a decision by the state’s Superior Court, which had erred when it considered the validity of an emergency order.

While this case arose outside of New York, it still serves as a good reminder about the importance role played by emergency guardians, which will be examined in this article.

In a case that provides an important lesson about the role of charitable deductions, The Ninth Circuit recently affirmed a tax court’s decision to sustain a deficiency against an estate because the estate had overstated its amount of charitable deductions. In the case, Ahmanson Foundation v. United States, the Ninth Circuit emphasized that a person who creates an estate is only allowed a deduction for estate tax purposes for what the charity actually received.  

In addition to estate planning, taxpayers in the United States have relied on charitable donations for years to reduce their taxable income. The Tax Policy Center even reports that approximately 20 percent of people who file their taxes utilize charitable donations. Unfortunately, not every contribution that a person makes to a charity qualifies for tax deductions. As a result, this article reviews some of the various ways that a person can transfer assets to a charity and not qualify for a tax deduction.

# 1 – Contribution of Services

There are a number of risks associated with the estate planning process. Some of the risks involved with estate plans include how interest rates will change and how old the creator of the estate lan is when they die.  Not to mentions, tax laws change frequently and depending on the alterations to the law that occur, a person’s estate plan could be greatly affected.

Fortunately, by following some important suggests, it is possible to greatly reduce the risks associated with successful estate planning.

# 1 – Determine What Risk Factors Exist

In February 2019. The 2nd Circuit Court of Appeals heard the case of Pappas v. Phillip Morris, in which the plaintiff pursued Connecticut state law liability claim on behalf of her deceased husband’s estate. The district court previously dismissed some of the plaintiff’s claim on the basis that Connecticut did not allow the plaintiff to represent the estate of her husband pro se.

The conflict of the case, however, concerned Connecticut and federal law which when applied had different results to whether the plaintiff would be allowed to represent the estate pro se.

New York Pro Se Estate Lawsuits