New York Estate Planning & Elder Law Blog

How to Create an Estate Plan that Can Be Quickly Modified

Published on: December 18, 2020 | by Ettinger Law Firm

People who have an estate with various assets often need to be prepared to contend with sudden changes in both market valuation and tax laws. During the COVID-19 pandemic and an era of both political uncertainty and quickly changing markets, it can be particularly difficult to decide what assets to transfer into a trust. This article reviews some tips and strategies that you can follow to add flexibility to your estate plan so you can make quick decisions to capture the most of estate opportunities in the changing market.

# 1 – Utilize “Intentionally Defective” Irrevocable Grantor Trusts

Intentionally defective grantor trusts are best thought of as grantor trusts with a purposeful flaw that makes sure the trust creator continues to pay income taxes. An intentionally defective grantor trust can be utilized to reduce estate taxes. A grantor creates the trust, transfers investment assets into the trust while retaining the ability to reacquire assets in the trust through the substitution of other equally valuable property, pays gift tax on the transfer, and pays income taxes on any increase in the trust’s value.

3 Ways Life Insurance Policies Play Vital Roles in Estate Plans

Published on: December 18, 2020 | by Ettinger Law Firm

The best types of estate planning involves a multi-faceted approach, which both addresses financial as well as health concerns. While many people are aware of the benefits provided by estate planning tools like wills and advance healthcare directives, one helpful but commonly overlooked estate planning tools are life insurance policies. As a result, to widen the types of estate planning tools that you can consider utilizing as you plan for your incapacity or death, this article reviews the role that life insurance policies can play in estate plans.

# 1 – The Primary Purpose of Life Insurance Policies

Life insurance is often viewed as an income replacement for dependants. For people who are the primary or significant income providers in households, income replacement is not optional. Similarly, if a person is a homemaker or the primary caregiver of a minor or disabled child, it is critical to remember that the cost associated with hiring a replacement caregiver is substantial.

4 Estate Planning Reminders During The COVID-19 Spike

Published on: December 17, 2020 | by Ettinger Law Firm

Estate planning does not always appear on people’s things to do. Living through the coronavirus pandemic as well as approaching the second wave of the COVID-19 pandemic, however, should change the urgency with which people approach estate planning. New York currently has the fifth-highest number of COVID-19 cases among the states with more than 650,000 confirmed cases. Inevitably, some families during the pandemic will only discover that they lack sufficient legal documents when a loved one dies. To avoid expensive court cases, remember that estate planning is one of the best ways to prepare for the unexpected. To help you begin considering what legal documents to include in your estate plan, this article reviews some of the most common tools that people utilize.

# 1 – Wills

A last will and testament informs the court of who you would like to receive your assets after you pass away. This document also informs the court who you would like to make responsible for ensuring that your bills are paid and that assets transfer to the correct people. If you do not create a will and have not established other ways for your assets to be handled after your death, your belongings will likely not pass to the desired people. Instead, courts will often intervene and decide about who should receive these assets.

3 Invaluable Estate Planning Trusts You Should Consider

Published on: December 13, 2020 | by Ettinger Law Firm

Trusts are a nuanced part of estate planning and can make sure that assets are passed on to your loved ones in a controlled manner. While there are many terms and concepts to grasp when it comes to understanding trusts, it also helps to appreciate that there are several types of trusts. This article examines just a few of the most common trusts which can be used advantageously to achieve various estate planning goals.

# 1 – Bypass Trust

Sometimes referred to as a credit shelter trust, these trusts are primarily used for tax reduction. The trust, however, also has several non-tax related benefits. For example, bypass trusts can protect assets from poor investment decisions as well as creditors and financial scams. Bypass trusts can also help to guarantee that children or beneficiaries are the ultimate recipients of the trust’s assets. As a result, these trusts are commonly used when one spouse has been previously married. The challenge presented by bypass trusts, however, is deciding how much to transfer into the trust. There’s no universal answer as to the extent of an estate to transfer to a bypass trust, but an experienced estate planning attorney can help you make this decision.

Four COVID-19 Scams To Avoid

Published on: December 13, 2020 | by Ettinger Law Firm

Difficult times bring out the extremes in people. While the news is full of stories about altruism during the COVID-19 pandemic, there are countless examples of individuals who have come out with scams designed to capitalize on people’s confusion and fear. Besides being at increased risk of experiencing the most serious COVID-19 symptoms, senior citizens are also at an elevated risk of being the target of scams. To better protect senior citizens and help family members make sure their loved ones stay safe, this article reviews some of the most common scams that have been documented during the pandemic. Knowing about these disreputable tactics in advance is one of the best steps that senior citizens can take to protect themselves.

# 1 – Promises Covid-19 Cures

Major pharmaceutical companies like Pfizer are nearing the introduction of a COVID-19 vaccine to the general population, but there is still no known cure for coronavirus. As a result, anyone who tries to sell you a cure or a vaccine is lying. Some of the various offerings that the Federal Trade Commission and the United States Food and Drug Administration have identified that are falsely billed as cures or vaccines include:

3 Reasons Why You’ll Like Need More than a Will

Published on: December 10, 2020 | by Ettinger Law Firm

Wills are an excellent fundamental of many estate plans. If you pass away without a will, a New York court will be tasked with making the difficult decision of who should receive your assets as well as who should look after your children. If you’re like one of many adults in New York who has been forced to confront their mortality this year due to the COVID-19 pandemic, you’ve likely considered whether your will is up to date or if you’ve ever written one at all. While all estate planning should begin with a will, however, you should realize that wills are just one small piece of the estate planning puzzle. This article reviews just some of the most critical reasons why your estate plan needs more than a will.

# 1 – Wills Have Limitations Regarding Assets

Wills are estate planning documents that help you determine how matters should be handled when you pass away. You can be as specific as you’d like with wills or keep the terms of these documents open. While wills control the distribution of many assets, certain other assets pass outside the terms of wills including retirement accounts like 401(k) plans and individual retirement accounts. This means that beneficiaries listed on retirement accounts will often receive assets regardless of the terms of a will. Regular bank accounts can also have beneficiaries listed. If a beneficiary is not listed on the terms of retirement accounts, these assets will automatically pass into probate.

3 Things to Remember About Passing Assets to a Financially Irresponsible Beneficiary

Published on: December 9, 2020 | by Ettinger Law Firm

Sometimes creating an estate plan means more than just simply designating who will receive your assets. Instead, it sometimes becomes critical to think about how a loved one will receive what you leave them. Fortunately, estate planning presents the opportunity to contemplate the particular needs of your beneficiaries as well as the structure of such transfers. One of the most common but serious obstacles that exist in passing assets to a loved one is if a beneficiary is financially irresponsible.

Understandably, after decades of working hard, you want to make sure that the assets you pass on to loved one can be fully utilized. If a loved one does not treat assets with the same serious nature that you do, however, this intent can quickly defeat your estate planning goals. Fortunately, there are estate planning strategies that are available to make sure that assets last a long time and are responsibly managed. This article considers just some of the critical issues to remember about passing assets on to a beneficiary who is financially irresponsible.

# 1 – The Role of Trusts

Overcoming the Challenge of Undue Influence

Published on: December 7, 2020 | by Ettinger Law Firm

It’s not an uncommon story. In their final years or months, a loved one decides to leave a large amount of assets to someone they have just met. Often, these estate plans defy previous orders that would have passed on assets to family members. In these situations, family members and loved ones are often left whether they can pursue an undue influence claim. This article considers the nature of such arguments.

The Legal Basis of Undue Influence Claims

In New York, undue influence describes the influence to destroy the influence of a person engaged in estate planning and substitute another plan in its place. As a result, the estate planner is compelled to decide against their will due to complexities like fear, the need for peace, or an irresistible urge.

A Quick Guide to Caregiver Assignments

Published on: December 6, 2020 | by Ettinger Law Firm

It’s a common occurrence for family and friends to be the caregiver for disabled and elderly loved ones. In these situations, it is critical to understand that caregiver assignments are legal documents that both define as well as describe how a loved one should be cared for by another individual, which often will include a family member or friend. These agreements play the critical role of making sure that family members and loved ones both agree and understand the labor and cost associated with caring for a loved one. To better help you understand the role that a caregiver agreement can play in your estate plan, this article reviews some critical issues that you should consider about such agreements.

Why Caregiver Assignments Are Important

Caregiver assignments are an invaluable tool for making sure that a loved one receives the best care possible from both family members as well as medical providers. These documents can also perform the invaluable role of protecting caregivers by performing the necessary task of describing how much a caregiver should receive as well as the plan of action for such care. Caregiver assignments also often perform a valuable role in avoiding family conflicts.

Frequently Asked Questions About Qualified Personal Residence Trusts

Published on: December 4, 2020 | by Ettinger Law Firm

For many people who pass away, their home is their most valuable asset. As a result, several estate planning strategies are utilized to hide such an asset. One of the most common estate planning tools used to transfer assets is a qualified personal residence trust. Such trusts allow the creator to avoid potentially substantial tax complications without facing significant challenges during their lifetime. After the terms of the trust end, the remainder then passes to designate beneficiaries. Because people interested in qualified personal residence trusts often have several questions about this estate planning strategy, this article considers some nuanced questions about how these trusts operate.

What Happens If You Outlive The Terms of the Trust

It’s easy to end up uncomfortable with the possibility that you might still be alive when the terms of the trust end. In such a situation, the remainder beneficiaries will inherit your assets. This might mean that you need to pay the beneficiaries rental to continue residing at your home. Although this might seem like a substantial challenge at first, realize that this type of action often helps to satisfy the estate planning goal of transferring assets on to loved ones.