New York Estate Planning & Elder Law Blog

Estate Battles More Common Than Ever

Published on: February 13, 2013 | by Ettinger Law Firm

Feuding after a death has been common for centuries. However, observers point out that in recent years estate battles have actually grown and more frequent. The trend is noted for all families, both those with sizeable wealth and those of much smaller estates. It is a crucial reminder for residents to take action now to eliminate uncertainty and confusion and ensure in-fighting doesn’t tear a family apart following a passing.

Last week the Telegraph published a story on the topic, pointing to data showing an uptick in legal battles over inheritance disputes. The most common explanation for the change is the recession which devastated many families over the past seven to eight years. One observer explained that in tough economic times, “more people are hoping to receive an inheritance and there can be a great deal of trouble if their hopes are disappointed. People are more litigious in general and more willing to assert their rights.”

Undoubtedly, the recession acted as a spur, influencing some to start a legal fight in order to secure funds that they desperately needed and might assume are owed to them. However, money troubles aren’t the only cause in the change. After all, financial incentives exist even in relatively prosperous times.

Does New York Need a Mandatory Elder Abuse Reporting Law?

Published on: February 12, 2013 | by Ettinger Law Firm

It is commonly understood that elder abuse is a serious concern that often goes unreported. But there remains less certainty about the best ways to address the problem. A recent Buffalo News editorial argued that more needs to be done at the state and federal level to tackle the issues.

For one thing, New York is one of only three states in the country that does not have a law which requires reporting of elder abuse and financial exploitation. The idea is that community members–particularly those in situations where elder abuse might be observed–must be made aware of the gravity of the situation and effectively forced via the law to report their suspicions.

The story points to recent research by Cornell University academics entitled “Under the Radar: New York State Elder Abuse Prevention Study.” Disturbingly, the report found that for every case of elder abuse that is reported to authorities, another 44 cases are never shared. That estimate is similar to those made by previous researchers. When all forms of elder abuse are considered (including financial exploitation by family members), other studies have found that upwards of 95-99% of exploitation is not reported.

Challenging the New York Nursing Home Surcharge Tax for Private Payers

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

Many seniors and their families only learn about the significant cost of nursing home care when they begin planning for it later in life. New York is one of the most expensive in the country, with annually costs reaching $100,000 or more to live in a skilled nursing facility. NY elder law attorneys and other senior advocates always recommend as early preparation as possible, because getting a jump on the issue keeps more options open. For the majority of residents, Medicaid support is usually needed. The earlier this is planned for, the more property can be spared for being “spent down” to qualify for Medicaid.

Conversely, some seniors of more means (or more early planning), may have saved enough personal assets to pay for nursing home care on their own. Some pay for care for a few years and then switch over to Medicaid when their resources are exhausted.

Unfair “Granny Tax?”

E-Planning: Estate Planning in our Digital World

Published on: February 6, 2013 | by Ettinger Law Firm

Like it or not, our world is infatuated with technology. Smartphones conduct intercontinental transactions. Friends across the country communicate through instantaneous text messaging, and telephones and tablets close distances and miles through face to face conversations. Because technology plays such an important role in our daily lives, today’s estate planning should include an arrangement for organizing and protecting technological and digital assets.

Dividing Up Digital Assets

We have frequently discussed how there are different kinds of digital assets to think about when drafting your estate plan. First, there are your personal digital assets, which would include any email accounts, personal social media accounts and maybe even a personal web site or personal blog. Personal digital assets might also include any photos or documents stored on different websites, like Snapfish, Shutterfly or Dropbox. Information stored in any cloud storage should also be considered personal digital assets.

Estate Planning with the Blended Family in Mind

Published on: February 4, 2013 | by Ettinger Law Firm

The birth of a child, a soldier’s welcome home, a wedding, a graduation, holiday festivities, or even a birthday party are all examples of gatherings where, more often than not, a blended family is present, taking part and celebrating. In the U.S., first marriages, second marriages and remarriages regularly welcome new family members. Plus, people are generally living longer, often outliving spouses and marrying again. Step children, step parents, children from previous marriages are all members of the different types of blended families that now outnumber “traditional” families in the United States. And if you are a member of a blended family, as it grows and changes, new estate planning considerations arise regarding your own children and family members, as well as members of your blended family.

Avoiding Possible Problems

Often, in many family situations, one of the best ways to avoid potential problems is to talk with family members about your concerns. As a recent USA Today article discusses, communication is critical in estate planning, particularly when a blended family is involved. Frequently when a family member passes, the remaining family members aren’t just concerned with the transfer of money, they are also concerned with the transfer of special heirlooms and other unique items. Talking about, and planning for the future transfer of not just monetary assets but personal assets as well will hopefully avoid potential problems and disagreements.

Passing on Digital Passwords After Death

Published on: February 1, 2013 | by Ettinger Law Firm

Over the past few years more and more attention has been paid to the value of “digital” assets and the need to account for them in estate planning. Yet, for all the increased awareness, there is still a long way to go before all families properly plan for handing online access and property issues. A Private Wealth story recently highlighted one of the main problems: failing to provide others with access to crucial username and password details.

Extra Burden on the Family

Many of us have a myriad of usernames and passwords that we use to control our online lives. These include social media accounts (Facebook, Twitter, blogs), email addresses, online banking data, and more. Many families are plagued with administrative nightmares when a loved one dies without providing a way to access these accounts.

Trusting Kids with Large Inheritances Remains a Challenge

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

One of the most common concerns that parents have when creating an estate plan in New York is worrying about passing on too much wealth to children who cannot properly handle it. After a lifetime of hard work, ingenuity, and prudent planning, the last thing many families want is to see a child obtain an inheritance and then lose it. One need only check newspapers headlines to see celebrity examples of younger individuals with too much money whose lives take a turn for their worst as they fail to handle their wealth carefully.

A Wall Street Journal article last week discussed this issue in the context of the now seemingly permanent federal estate tax rates. Per the “fiscal cliff” agreement, the estate tax law will allow each individual to shield up to $5.25 million. For a couple, that allows $10.5 million to be given to others tax-free.

While this is good news for those who have this much wealth to pass along, it does raise some questions for families. Is your child–no matter what age–prepared to handle an inheritance of this size? Will it be lost to creditors? Taken by a spouse? WIll the money change the child’s motivation or long-term goals?

Is the IRS Going to Crack Down on Non-Cash Charitable Deductions?

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

Our estate planning attorneys often help New Yorkers create trusts that are used to pass on assets to charities. When structured properly, gifts to favorited causes is both a great way to give back and a smart financial move to save on taxes and ensure that your long-term inheritance wishes are met.

A Charitable Remainder Trust, for example, is sometimes a prudent estate planning tool. This is particularly useful for those with assets that have significantly appreciated who wish to save on taxes while generating an income stream on something that will eventually go to charity. Essentially, this works by creating a trust that is managed by the charity to which the asset will go. The trustee (the charity) then pays you a portion of the income generated by the trust for so many years or the rest of your life. Upon your passing the charity retains the principal.

These trusts have many benefits. They can take assets out of one’s estate for estate tax purposes. Also, income tax deductions can be taken on the fair market value of the interest that remains in the trust. By using appreciated assets, the capital gains tax can also be avoided.

Equipment Fix Delays Plague New York Medicaid Participants

Published on: January 25, 2013 | by Ettinger Law Firm

Many New York seniors who need long-term care are enrolled in the state’s Medicaid program. In many cases the payments are made for care in skilled nursing facilities–traditional nursing homes. However, Medicaid also helps with various other types of care, including some at-home services and medical equipment.

In general, the New York Medicaid program is one of the most expansive in the country, offering a wide range of care options that are not available to those needing assistance in other states. However, that is not to say that the service is without problems. In fact, many have offered sharp critiques of some current practices which may harm those using the program, including many New York seniors.

No Quick Fix

What Does Elder Law Even Mean?

Published on: January 23, 2013 | by Ettinger Law Firm

The legal professionals at our firm provide elder law and estate planning services. Many community members are familiar with the basics of estate planning. Tasks like designing wills, creating trusts, and putting inheritance plans into place are understood by most when thinking about “later in life” legal issues. However, elder law is a bit less clear. What does it actually mean?

While there are many definitions, a good one was put forward on a recent story on the issue published in Wealth Management. Essentially, the authors of the material suggested that elder law can be reconsidered as “quality of life planning” to maximize the value the last two to three decades of one’s life.

In general this focuses on long-term care. Securing the proper care is critical for seniors to thrive in their golden years. But even though seventy percent of Americans will need long-term care at some point in their lives, the process of obtaining it can be incredibly confusing, complex, and, in some cases, downright impossible. An elder law attorney is responsible for assisting at these times by either putting plans in place early on so that the long-term care is available in the future or working when “on the nursing home doorstep” to protect assets while ensuring the necessary care is available.