Estate Planning

Important Reminders When Planning for Your Pets

Published on: October 18, 2017 | by Ettinger Law Firm

For many people with animals, those furry friends are a part of the family. We make exceptions for them to make sure that they are taken care of while we are alive, and it is not uncommon for people to include provisions in their estate planning for pet care after a human companion passes away. Making sure your pets are taken care of after you pass is an important part of responsible pet ownership as well as an important part of comprehensive estate planning. However, a recent article from Fox News provides some reminders of traps to avoid when including your pets in your estate plan.

An Important Consideration

If you include provisions for your pet(s) in your estate plan, make sure they are realistic. A pet does not fit into everyone’s life, so when approaching estate planning for pets you first need to be confident that the person you nominate to care for your pet(s) is ready and able to accept the responsibility. This means that you will need to have a serious discussion with the person you are designating as the caretaker before you create provisions in your estate plan involving them. This important reminder extends to a number of different aspects beyond pets – and an experienced estate planning attorney can help you approach them correctly.

Tips on Talking to Parents About Inheritances

Published on: October 14, 2017 | by Ettinger Law Firm

As important as talking about estate planning is, almost nobody will tell you that doing so is easy. In fact, talking about estate planning is usually pretty difficult. We have written about many different approaches to talking to your heirs about your estate plan, but communication is an extremely important part of estate planning and works both ways. A recent article from The Week may help you find ways to approach talking to your parents about your inheritance. One of the most important things to remember is that even with a difficult topic like this, discussions about these things typically end on a good note. The following tips can help you strike the right chord when approaching estate planning with your parents.

Timing Is Key

The article points out that some individuals might be inclined to have discussions about serious family topics like inheritances during holiday visits. However, experts warn that it is important to remember that holidays are often already a stressful time for everyone and trying to have a serious discussion about something as important as estate planning might be rather difficult during these times. It could even end up striking the wrong tone and making any future discussions about the topic that much more difficult and unpleasant.

Potential Issues with Joint Bank Accounts

Published on: September 30, 2017 | by Ettinger Law Firm

There are a number of reasons that people create joint bank accounts. Perhaps you and your spouse want to share a bank account to help simplify your marital finances. You may use joint bank accounts to help teach your children the importance of budgeting and financial planning. You may even need to have access to someone else’s bank account if they are incapacitated or cannot make purchases on their own. Whatever the reason for having a joint bank account, they are not without potential issues when it comes to your estate plan.

Vulnerability

Adding a person as an owner of a bank account inherently makes the account itself more vulnerable. In addition to the potential issues raised below, the more people you add as owners of a joint account the more likely you are to fall victim to theft – including identity theft. By adding individuals to the account, you will increase the risk of lost or stolen cards and/or checkbooks. Additionally, if the person you add to the account is not financially responsible, you risk losing the assets in that account because of poor financial planning.

Trusts Are More Accessible Than You Might Think

Published on: September 18, 2017 | by Ettinger Law Firm

Once a tool for extremely wealthy individuals, trusts have gained in popularity over recent decades. Changes in laws governing trusts and the development of new approaches to estate planning have made trusts an invaluable tool for many working class families to ensure they are able to provide financial security to their loved ones. A trust can help make sure that your assets are distributed according to your wishes in a variety of different ways, some of which are discussed below. An experienced estate planning attorney can review the various types of trusts that you may be eligible for and can help you determine the right type and structure to achieve your estate planning goals.

Trusts Can Avoid Probate

The majority of trusts are established during a person’s lifetime, and these trusts will be eligible to avoid the probate process. While the New York probate process is less difficult than the probate process in other states, it can still be time-consuming and costly. Trusts are an effective way to allow loved ones to access the assets you wish to distribute to them without waiting for the probate process to be complete. Ultimately, this saves you time and money in addition to keeping assets within the trust out of the public record associated with the probate process.

Important Steps to Take After a Loss: Part 2 – Within Six Months

Published on: September 16, 2017 | by Ettinger Law Firm

In the second part of our series on the topic of things you need to do when a loved one dies, we will explore some of the things that should be addressed within roughly six months of the death of a loved one. Again, these lists are not exhaustive. However, they can help you start to think about the various issues that need to be addressed.

Notify Social Security

Within one month after the death of a loved one, the United States Social Security Administration needs to be informed of their death. They will have to put various processes in motion that stop social security and other benefit payments from continuing. Failure to do so could result in identity theft, or even if liability for repayment of such benefits. Depending on your relationship with the deceased and their benefits, you could also be eligible for survivor benefits that can have a significant positive impact on your everyday life.

Important Steps to Take After a Loss: Part 1 – Immediately

Published on: September 13, 2017 | by Ettinger Law Firm

Death is a challenging subject, even more so when we are confronted with it directly. When a loved one dies, it is an immeasurably difficult experience. People experience a range of emotions, and often it can be hard to understand what to do next. In this series, we will explore some of the important steps you need to take after experiencing the death of a loved one. While these are not exhaustive lists, the first part of this series is dedicated to helping you understand some of the things that need to be addressed as soon as possible after the death of a loved one. It is not easy to bring yourself to undertake some of these tasks, but being aware of how crucial many of them are is an important part of finding ways to accomplish them – either personally or by enlisting the help of someone your trust.

Safeguard Property and Secure Arrangements

Depending on the circumstances surrounding a person’s death, it may become crucial to ensure that any property they have left behind is properly secured. This may include their home and/or their vehicle. You will want to make sure everything is locked and stored appropriately, that utilities are shut off, and that anything potentially dangerous to others has been properly taken care of.

529 College Savings Plans and Estate Planning

Published on: September 11, 2017 | by Ettinger Law Firm

Today, financial planning and estate planning are inherently intertwined in a number of different ways. Comprehensive estate planning requires responsible financial planning, and responsible financial planning will create assets which comprehensive estate planning will help you protect. One of the world’s most important assets is our children. Once children enter the picture, their future becomes one of the most important focuses of a parent. To that end, one of the most important aspects of a child’s well-being is their education and a college savings plan – typically known as a 529 plan – can be an integral part of financing higher education opportunities, which makes it an important part of your estate planning considerations, too.

Understanding 529 College Savings Plans

A 529 college savings plan is a state-sponsored program that enables parents or other interested individuals to set aside money each year to eventually help offset the rising costs of higher education. These plans are meant for long-term contributions that build the amount by collecting earnings on the principal you contribute to the plan. Eventually, you can make penalty-free withdrawals from the plan as long as you are using those withdrawals to pay for qualified educational expenses. These withdrawals may even be made directly to a school for such expenses. Some states offer various types of plans, but most of them accomplish the same goal.

Estate Planning for Your Pets

Published on: September 8, 2017 | by Ettinger Law Firm

For many people, pets are more than just entertainment. They can easily become part of your family, making memories more special and providing endless enjoyment for their human companions. Given the important role pets play in our lives, it is important to consider them when engaging in estate planning. This is especially true when an individual has a less traditional pet or a pet with special needs that may require extensive care were the pet’s human companion to pass. There are several ways to ensure that your pet or pets are taken care of should something happen to you.

Pet Provisions

While we may view pets as being a member of the family, the law sees them as property. Therefore, it is important to make sure that you include specific provisions in your Will that name the person or persons that will be responsible for caring for your pet. You will also have the opportunity to set aside funds for pet care in your Will. It is important to be specific about whom should inherit your pet as well as what assets you ill bequeath them, if any. It is also a good idea to discuss pet care with the person you have in mind prior to naming them in your Will to determine whether or not they are in a position to adequately care for your pet.

Medicaid and Estate Planning

Published on: September 3, 2017 | by Ettinger Law Firm

For a long time, Medicaid has had the reputation of being a program that provides insurance and other benefits to poorer individuals throughout the United States. In some ways, recent contentious debates have deepened that image. However, a recent article from Business Insider points out that this is simply not true. In fact, Medicaid often plays a crucial role in estate planning for those in nursing homes or in need of various other forms of long-term care.

Medicaid and Long-Term Care

The article notes that the average price of long-term care options for senior citizens have risen approximately 19 percent since 2011. That is far greater than the amount of social security or pension increases that accompany the increase in these costs. Given that people are living longer lives and that the cost of long-term care is constantly on the rise, this should not be surprising. According to the article, about 28 percent of Medicaid funds are used to finance long-term care costs.

Tips for Choosing the Right Executor or Trustee

Published on: August 30, 2017 | by Ettinger Law Firm

Whether you are choosing an executor for your Last Will and Testament or a trustee for a trust you have established, it is clearly important to make the right decision. You want to choose someone trustworthy, responsible, and capable of carrying out the responsibilities being entrusted to them. That is often easier said than done, but the following tips adapted from the American Association of Retired Persons might be able to provide some guidance.

You Do Not Need an Expert

We all have a natural desire to want to work with the best when it comes to important matters. While experience in trusts and estates is beneficial, it is not required to properly and responsibly execute the duties associated with being an executor or trustee. Common sense can provide a solid foundation to perform these duties, and you may prefer a more intimate relationship with the person you are naming than you might get with a professional. In some situations, it may be best to choose a corporate trustee from an institution like a bank. However, many individuals can avoid doing this by selecting a reasonable person – which will also help you avoid the professional fee that may be associated with these services.