Articles Posted in Estate Planning

New Website Services Offers Online Method of Distributing Personal Property

Published on: August 10, 2011 | by Ettinger Law Firm

Most New York estate plans have various components and include several legal documents. Most will have a Revocable Living Trust, Medicaid Asset Protection Trust, or both. A pour-over will is also frequently added as a failsafe to cancel an old will and ensure that any assets left outside the trust are brought into it after death. The plan will have various other facets, including a Power of Attorney, Health Care Proxy, burial instructions, and other final instructions for a family.

In addition, a common practice is to leave a list which indicates which valuables will go to each heir. This list is usually handwritten and specifically requests that a trustee honor its terms. In this way, if a client changes their mind about the distribution of their personal property they can simply handwrite a new list without needing to visit their attorney to cement the change. This step is important because many local families experience in-fighting when trying to distribute sentimental personal property without the guidance offered by a New York estate plan. When more than one family member wants the same item, the stage may be set for strong disagreements that often profoundly and permanently affect relationships. Most family members are under immense stress at the time of a passing which makes the situation even worse.

A few online web services have recently sprung up which claim to help families distribute this property in a fair manner. For example, one of the more popular services is eDivvyup. The website essentially sets up a family auction using non-monetary “credits.” A family first selects an “executor” to set up the auction by cataloging personal items, inviting family members to participate, and assigning credits. Each family member then visits the site and places bids on items of interest to them using the non-monetary credits they are provided. The auctions usually work like eBay, spanning anywhere from a day to several weeks. The goal is that by the end of the auction each family member will have gotten the fair chance to indicate which items mean the most to them.

Season Tickets, Frequent Flier Miles, and Other Unique Assets in Estate Plan

Published on: August 8, 2011 | by Ettinger Law Firm

Local residents visit our New York estate planning attorneys for professional assistance to protect and pass on their assets. Many also expect guidance identifying the items that should be considered an asset and included in the planning. Most area families need to consider things beyond homes, cars, investment portfolios, and similar items when creating their New York estate plan.

For example, what happens to frequent flier miles and rewards upon an individual’s death? Many residents spend years and thousands of dollars in airfare racking up mileages and benefits in airline sponsored loyalty programs. A recent article in Payments News explained how many fliers spend time accumulating these “miles” and rewards only to leave them unused at their death. Some reports indicate that as many as 3.5 trillion miles currently remain unused in these programs. Interestingly, each airline has a different policy in place regarding transferability of loyalty benefits at death. American Airlines specifically allows accumulated mileage credit to be transferred to a person named in a court-approved will or estate plan. Other carriers, such as United Airlines, require that a beneficiary be named with the program, a fee be paid, and require an executor to contact the airline before miles can be transferred.

Another asset which one may wish to leave behind is the option to purchase valuable season tickets. Area residents often spend years waiting for the opportunity to become a season-ticket holder for their favorite teams. A post this weekend at The Faculty Lounge recently discussed this topic. Most teams have policies in place that allow an individual’s decedents to gain the right to purchase. However, it is important to closely examine the team policy related to ticket transferability to understand what issues might arise. For example, there may be conflict over who gains the right if several children share in ones’ assets. Many team policies indicate that there will be no transferability if several individuals share in the right and do not agree on a single transferee. Some teams also expressly prohibit a non-relative from receiving the right to purchase the tickets.

Estate Planning is Not Just for Senior Couples

Published on: August 2, 2011 | by Ettinger Law Firm

Some area residents may think that New York estate planning is only for married seniors who have big families and substantial wealth. Fortunately, more and more people are coming to understand that this planning is a necessity for all community members, no matter what their situation in life. The Calgary Herald recently discussed the universal applicability of estate planning by sharing the example of a thirty-six year old mother of two who was recently divorced. The woman had never before seriously considered financial matters, but everything changed following separation from her husband.

It was not long before the mother began to realize that taking care of her family was now squarely on her shoulders–necessitating prudent preparation for long-term contingencies. For example, if she were to suddenly become ill, who would take care of her children? If she became disabled, how would the family survive? The woman began considering these and similar questions before realizing that she wanted the peace of mind of knowing that she had prepared for these possibilities ahead of time. The woman visited an estate planning attorney and learned what options were available to her. She eventually purchased life insurance, disability insurance, and had legal documents drafted to ensure others could make critical decisions on behalf of her family if the need arose.

The mother’s situation is a good example of why estate planning is often particularly important for singles. Those without a partner frequently need to clearly spell out their wishes ahead of time, because fewer people may be around to speak on their behalf. For example, a thirty year old single man may get in an accident shortly before closing on his first piece of real estate. If he has taken the time to create a durable Power of Attorney, the named individual may be able to close on that new home on his behalf. There are countless similar situations that may arise where prior estate preparation can significantly affect an individual’s life.

Parents Grapple with Effect of Inheritances and the Meaning of Money

Published on: June 4, 2011 | by Ettinger Law Firm

New York inheritance planning involves passing on values as well as assets. No matter how large the family estate, most parents think long and hard about how their inheritance will affect the lives of their children. For many there are no easy answers to questions like how new wealth will affect their children’s independence or how much wealth is the appropriate balance between proper inheritance and philanthropy.

As a story last week in the Belleville News Democrat explained, many parents are taking steps to share important information about the meaning of money as part of their inheritance plan. Most families strive to pass on the right amount of money so that children are provided for but still maintain the incentive to work, strive, and succeed.

One hardworking family, including a 60-year old retired teacher and 62-year old real estate broker, explained how they have worked with their now 30-year old daughter on financial matters, noting “We really want to encourage her to develop a personal financial plan, a personal philosophy, and become really familiar with the types of investments.” The family admits that frankness and early discussions about these issues is important. Children should know what to expect and parents should not be afraid to share their concerns with their loved one.

Some are worried that their loved ones may be unprepared to handle the estate that they receive. Those families often face issues with asset planning for spendthrift children. They are aware that their children are poor at handling money or inexperienced with such matters. Many options exist for parents in those situations. For example, trusts are perfect tools to ensure that a child has access to reasonable assets but is unable to abuse the overall value of the estate. In these situations a designated “trustee” manages the actual estate with rules about what the child receives and when they receive it.
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