Estate Planning

Federal Marriage Rights Now Available for Same-Sex Couples

Published on: June 28, 2013 | by Ettinger Law Firm

Whether one is married or single is obviously a vital factor that impacts elder law and estate planning. Of course, that placed married New York same-sex couple in a strange position, as they were married under New York law, but single under federal law. As mentioned yesterday,with the U.S. Supreme Court decision in Windsor v. U.S., the federal law which deemed those couples unmarried is now gone. This will hopefully lead to a far more straightforward picture for those couples.

Marriage Rights & Obligations

Yesterday, The Globe published a story that delved a little more deeply into the specific rights which will now be afforded to married same-sex couples. The article is worth a look to get a better idea of some of the practical effects of yesterday’s ruling–beyond the obvious cultural and social effect of finally eliminating the stigma.

The 3 Generation Rule – Legacies the Last

Published on: June 26, 2013 | by Ettinger Law Firm

You’ve built a nest egg after years of consistent work, prudent planning, strategic risk, a lot of focus, and a bit of luck. You want to retire peacefully and provide a legacy that will hopefully secure some degree of wealth for you family for generations to come.

But what are the odds of wealth making it decades (or even centuries) after you are gone? If history is any indication, most inheritances won’t make it long at all. Wealth surviving into the third generation only happens in one out of ten cases. As a recent Senior Independent story on the subject reminded, this principles takes the form of an often-used refrain: “Shirtsleeves to shirtsleeves in three generations.”

The story points out that over the course of their lifetimes about two-thirds of Baby Boomers in the United States will inherit about $7.6 trillion. Yet, those same individuals will lose about 70% of that wealth before passing any of it on to their own children or other relatives.

Forbes on Gifting – When an Inheritance Can’t Wait

Published on: June 24, 2013 | by Ettinger Law Firm

One of the most common questions that local families ask related to estate planning and assets protection involve gifts: Whether to give them, when to give, how much, and in what form.

Of course, no two situations are identical, and so it is impossible to list a set of rules regarding when and how large-scale gifting should be done in every case. However, a Forbes article this week on the topic provides a good starting point for New York families to familiarize themselves with the basic concept and major issues to consider.

Helping Children Now

Luxury Services for the Afterlife

Published on: June 10, 2013 | by Ettinger Law Firm

The Sun Sentinel recently published an interesting story on the growth of luxury services for those making funeral and burial decisions. While it may seem strange to some for such focus on high-end items in the afterlife, those familiar with estate planning appreciate the intensely personal nature of these decisions.

For example, the article includes an interview with one man who decided to build a large mausoleum where dozens of his family may one day be buried. The retiree explained: “I was making good money, and I could afford to do that for my family. It was the idea that most of my family preferred to be buried above ground rather than in the ground.”

Industry insiders working on these burial details note that there is a significant market for more high end plots and amenities. Some include large indoor mausoleums, granite-walled locations and even entire private burial estates with air conditioning provided for visiting guests.

Estate Planning for Spouses: The Basics

Published on: June 7, 2013 | by Ettinger Law Firm

This week Forbes published an article that outlines the basics of how to fund an estate plan for spouses. The story is a helpful reiteration of many of the basic issues that are common for all New York couples thinking about their future and trying to create security no matter what the future holds.

Helpfully, the story explains how estate planning is not the creation of a stack of legal documents that are signed and then stored until needed. Instead, the process is far more comprehensive and involves examination of all of one’s assets, wishes, legacy interests, elder care goals, and more.

As a general matter, on the estate planning side, one of the main goals is avoiding probate at all costs. That means that something like a last will and testament is inefficient. Instead, for most New York couples it is best to create a series of revocable living trusts which are far superior, allowing property to be protected and passed to others without the need for court intervention. After the trust is created spouses transfer property directly into the trust.

Estate Planning Becoming Reality Show?

Published on: June 5, 2013 | by Ettinger Law Firm

Epic estate planning battles–particularly involving the wealthy and famous–have long been fodder for newspapers. There have even been a few high-profile movies touching on the topic, like the recent George Clooney film, “The Descendants.” But now it appears that the sagas may make their way into yet another medium: television.

Reality TV continues to captivate audiences, and now some are looking to cast a new television show based on unique, intense, and interesting inheritance fights. The Trust Advisor recently shared information on the project which, if it becomes popular, is sure to raise awareness of common estate planning issues even more.

The show is still in the early stages of development, but it is clear that a large TV production team is looking for families to be filmed as their inheritance issues and planning details are sorted out. These early reports suggest that the show will center on inheritance and trust disputes among wealthy families. The purpose, one presumes, is to find families with the most unique issues, including family businesses, generations-long dynasties, and large personalities. The filming (and packaging as a television show) will likely highlight both the characters themselves as well as the unique processes involved in settling estate fights. While it may seem common knowledge to those of us working on these affairs, it is easy to forget that for most community matters, estate planning issues are foreign.

Trying to “Woo” Inclusion Into The Will of Heiress Huguette Clark

Published on: June 3, 2013 | by Ettinger Law Firm

The New York Times shared a story late last week on developments in the settling of the estate of copper heiress Huguette Clark. It is a reminder of the sensitive nature of estate planning, particularly for those with wealth, and the lengths that all involved parties may go to influence one’s decisions regarding inheritance.

As many know, Ms. Clark was very reclusive, living the final two decades of her life at the Beth Israel Medical Center, even though for most of that time she did not actually need hospital care. According to new reports (and allegations from family members), almost as soon as she arrived the hospital engaged in a complex campaign to receive donations from the heiress. Apparently the facility had administrative officials sent to her frequently to build trust. After some time the officials, including the hospital’s CEO allegedly, began talking with her about creating a will. All of this was after officials researched the family history in the hopes of making a more personalized connection with Ms. Clark. It goes without saying that this sort of treatment is not provided to all patients at the facility.

All of this is only recently being made public as part of a high-profile legal challenge filed by some of Clark’s relatives angling for a larger share of her $300 million estate. The legal challenges began almost immediately after her death in 2011, and they are still raging. A trial in the matter is scheduled for September.

Common Mistakes when Naming Insurance Beneficiaries

Published on: May 30, 2013 | by Ettinger Law Firm

Most lists of “common estate planning mistakes” include the frequent error of failure to properly update beneficiary designations. Yet, even that mistake is deceiving, because updating is just one thing to consider with these designations. Even if the names are evaluated on a consistent basis, it is still important to ensure that the person named as the beneficiary fits in with other aspects of an overall estate plan.

Fox Business recently published a story listing ten different ways that life insurance beneficiary designation decisions are made in error. The story is worth browsing to get a feel for some common issues.

For example, it is critical to name someone who can actually receive the funds. Parents may name their minor child as the beneficiary, but the insurance company will not dispense funds directly to a child. Without a trust or similar arrangements, then this designation will cause problems. A guardian must be appointed, leading to costly and timely court proceedings being necessary.

Family Claims Women Looking to “Fleece” Estate After Man’s Murder

Published on: May 24, 2013 | by Ettinger Law Firm

Earlier this month we discussed the unique estate issues connected to the murder of a wealthy investor named Raveesh Kumra. Mr. Kumra was murdered during a robbery late last year. It has since been learned that the suspects include several men with connections to alleged prostitutes with whom Kumra apparently was connected. It is a tragic situations all the way around, and the man’s family was understandably blindsided by the situation.

Making matters worse, a significant battle over Kumra’s estate has been waged by various parties since the death. It is an example of the unique court challenges that often result when comprehensive estate planning is not conducted and all possible issues are not analyzed as part of that plan.

Out-of-Wedlock Children

May is “Leave a Legacy” Month

Published on: May 22, 2013 | by Ettinger Law Firm

Virtually every month now has multiple awareness labels attached to them as advocates for various causes seek to raise public support for different causes. For example, this month is known in some international circles as “Leave a Legacy” month. Considering that many New Yorkers continue to delay estate planning and otherwise put off getting long-term affairs in order, this is certainly an awareness campaign that we can get behind.

In fact, some advocates are using a New York example as a reminder. We discussed the case last week of a man who apparently left his $40 million estate to no one, meaning that the funds will be end up in the state coffers. While most do not leave behind estates of that size, failing to create a will or designate how to allocate assets is far too common.

Estate Planning is About Your Legacy