New York Estate Planning & Elder Law Blog

Joan Rivers’ estate continues to be a topic of interest as it has been recently discovered that she reduced her estate tax burden by claiming residence in one state while actually living in another. Ms. Rivers’ died in September at the age of 81, and she had a will on file at the Surrogate’s Court in New York that was dated November 16, 2011. The will is of interest to estate planning attorneys and experts because of some of the wording regarding her place of residence.

Joan Rivers’ Will

The will on file states that Joan Rivers was a resident of New York state, but it also states that her state of domicile where she intended to stay “indefinitely and on a permanent basis” was California. Furthermore, her estate document contends that New York estate law will apply to the validity, interpretation, and administration of the will unless she died in California. If that was the case, California law would apply.

Recently, Apple and Facebook made the headlines when both companies announced that it is paying the expenses for its female employees to freeze their eggs. Most people do not assume that an announcement like this will affect their estate plan, but if you have a daughter or granddaughter you may want to reconsider that opinion. If either decides to use assisted reproductive techniques and freeze their eggs, you must consider whether you would like to include these potential descendants in your estate plan.

Defining Descendants and Heirs

For estate planning purposes, descendants and heirs are people who are genetically, biologically, or legally related to you. However, with the advent of egg freezing there is a chance that you will have a descendant that is not biologically or genetically related to you, and you must decide whether to include them in your estate.

This year saw a number of tragic celebrity deaths, and some were complicated further with estate planning issues. Using these stories can be a good way to transition into discussing issues of estate planning with your own family. A look back on the celebrity deaths and estate battles of the rich and famous shows just how many things can go wrong when an estate is not properly planned.

Patrick Swayze

Although Patrick Swayze died over five years ago, reports are coming out now that members of his family believe that his will was forged only a couple of months before his death while Mr. Swayze was hospitalized. His entire estate was left to his widow, and nothing was left to his mother or siblings. Because of the length of time that the estate has been closed, chances are that the estate documents will remain valid despite allegations of forgery.

Divorce is almost always an emotionally and financially draining experience, and high asset divorces come with an increased level of tension and drama. It is because of that emotion that some spouses in high asset divorce settlements make irrational decisions or financial errors that can cost them thousands or millions of dollars in the end. However, there are some areas in a high asset divorce that can be analyzed to ensure that you are getting the most out of the settlement proceedings.

Hiring a Valuation Expert

One way to minimize potential mistakes in a high asset divorce is to hire a valuation expert. This person is an objective professional who is hired to make accurate valuations of all assets for the couple based on specific metrics and methodologies. Many valuation experts are associated with accounting firms and carry special designations for their profession. However, more help may be necessary for the expert if highly specialized assets like a privately held company, holdings in a family business, or other technical investment interests are at stake.

It is risky to leave your estate and financial affairs unattended or secret from the rest of your family. According to research released this year, over 64% of all Americans do not have a will, and half of the people included in that statistic have children. When you do not have a will or keep your estate planning matters secret, it has the potential to cause discord in the family or cause the assets in the estate to be improperly handled. However, with the holiday season upon us, now can be a great time to discuss your estate plans with family members and avoid any potential problems in the future.

Choose the Right People for the Right Roles

One common error in the estate planning process is giving roles to members of the family according to what the testator thinks that they would want, rather than assigning tasks according to who would be best suited for the role. Acting as a fiduciary, trustee, or executor to an estate is a job, and you need to pick the right candidate. This means considering who would be truly best suited to handle tough responsibilities like medical, financial, and legal decisions.

Balancing the relationship between a trustee and beneficiary can be delicate, and if it is not handled properly the results can be costly problems and years of frustration. The beneficiaries are set to inherit valuables, homes, stock, and other assets. Yet it is the very nature of those assets that can cause tension with a trustee who controls the purse strings. However, there are some tips that can help ease the tension and create a good relationship between the person in charge of managing a trust and those set to inherit it.

Address Sources of Tension

The entire purpose of a trustee is to be a barrier between an heir and the money, so there are natural sources of tension between a trustee and a beneficiary. Most often, an heir wants access to their inheritance faster, and the trustee is hesitant out of fear that the money will be spent unwisely.