New York Estate Planning & Elder Law Blog

IRS Rules Now Reflect Updated Same Sex Marriage Rulings

Published on: October 9, 2016 | by Ettinger Law Firm

New Department of the Treasury and Internal Revenue Service Final Regulations Now Reflect Supreme Court’s Obergefell v. Hodges and Windsor v. United States Rulings

On September 2nd, the final regulations that reflect the holdings of the Supreme Court rulings that upheld same-sex marriage laws around the country as well as Revenue Ruling 2013-173 were released to the public. The new terms in the regulations reflect the new descriptions of marital status of taxpayers for federal tax purposes.

A Brief History Lesson

Estate Planning Measures for Unmarried Couples

Published on: October 7, 2016 | by Ettinger Law Firm

According to the 2010 Census, over 7.5 million unmarried couples or 15 million people, live together, a sharp increase from the 3.2 million unmarried couples living together in 1990. This increase in cohabitation has been attributed to a number of different factors, including increased living costs, decisions to marry later or not at all, and until recently, due to legal barriers for same sex couples.

There are many legal benefits to marriage, including rights to social security, immigration rights if one party is not a citizen, surviving spouse benefits, estate benefits, as well as joint bankruptcy filings and the right to refuse to testify against a spouse in a legal proceeding. However, these reasons alone are not justification to get married, which many couples are finding is not for them.

In order to ensure that your partner gets inheritance in the event of your passing, it is critical that the couple executes estate planning documents such as a will or trust. Naming your partner in your will ensures that they will be the beneficiary of the assets and property executed in the document. Additionally, name your partner as your beneficiary on all pensions, retirement accounts, and insurance policies and check those policies to determine if naming a non-family member is allowed or subject to specific rules.

What You Need To Know About Multinational Estate Planning

Published on: October 5, 2016 | by Ettinger Law Firm

One of the more unique present day aspects of estate planning comes from the very mobile and connected nature that many people who need estate planning have. Many people will not just move across countries for their jobs but across borders. Globalization has brought the world closer together but added another layer of complexity for when it comes to protecting and planning for assets. A citizen of the United States needs to know what law governs taxation and their estate for their income, assets and holdings both in the United States and abroad.

Taxation Is Everywhere

Despite what many may believe, U.S. citizens and resident aliens are subject to U.S. income and estate tax on their worldwide assets. It does not matter what country those assets might be in, the income and assets must be reported. In fact, U.S. Citizens working overseas and foreign citizens considered residents of the United States must file reports with the IRS if the total value of their foreign financial accounts exceeds $10,000 at any time during the year. U.S. citizens who are officers or directors in a foreign corporation who own more than 10 percent of the foreign corporation must also report ownership.

How to Disclaim Inheritance

Published on: October 4, 2016 | by Ettinger Law Firm

Claiming inheritance upon its distribution is something that many individuals welcome and conversely is the source of many family disputes. There are many reasons why someone may want to refuse their bequest however, in a process in estate planning referred to as disclaiming inheritance. Some beneficiaries seek to disclaim their inheritance due to their personal wealth, whether wealthy or poor, for tax reasons, or to pass the gift on. In estate planning, if you decide to disclaim your gift or bequest, you will be treated as if you died before the grantor did, and your share is redistributed according to the terms of the will.

Examples of Why You May Consider Disclaiming

Estate taxes can be particularly hefty and if disclaimed, the gift or bequest would pass to the next of kin, who may be more willing to take on the potential tax burden. In years past, disclaimers have been used a stopgap measure after the estate tax expired in which the first million in assets valued from an estate is exempt and assets thereafter is levied at 55%. Once the tax expires, there are sometimes unintended consequences which end up negatively impacting the estate of the beneficiaries.

Estate Planning – Learning From Gene Wilder

Published on: October 3, 2016 | by Ettinger Law Firm

2016 will undoubtedly go down as an infamous year of celebrity deaths and the unfortunate passing of celebrities continue. The world lost one of its funniest men this past August: Gene Wilder, star of Blazing Saddles, Willy Wonka and the Chocolate Factory, Young Frankenstein and The Producers. He continued to be active later in his life, penning short stories and novellas while contributing to his charity work. Mr. Wilder passed at age 83 from complications due to Alzheimer’s disease.

Past Spouses Must Be Accounted For

While details of Mr. Wilder’s estate remain sparse at the moment, there are no rumblings or rumors of will contests or estate disputes despite the estimated value of Mr. Wilder’s $20,000,000 estate. This is impressive, especially considering that Mr. Wilder was married four times during his lifetime. Having previous divorces can bring numerous complications to estate planning as we have covered before. Considerations for past divorce decrees as well as keeping up to date estate planning documents must be made to prevent a legal mess after a person’s passing.

The Emergency Preparedness Rule

Published on: September 29, 2016 | by Ettinger Law Firm

The Centers for Medicare and Medicaid Services finalized a rule recently in light of the most recent natural disasters in Louisiana that compromised the safety and well being of many Medicare and Medicaid beneficiaries throughout the affected area. Unfortunately, this rule came as a direct response not only to the devastating natural disasters we have experienced within the last decade, but the man made disasters as well, including terrorist attacks and health care scares. The rule was established in order to provider coordination for federal, estate, tribal, regional and local systems, that will now be required to comply with a unified system of emergency preparedness.

The need for additional support was realized when several patients who received treatment covered under Medicare or Medicaid were not able to obtain their care in light of the disaster, which furthered their need thereafter for additional care. Some of the organizations that provide care have complied with other emergency preparedness measures in order to receive accreditation, many residential mental health centers do not have a plan established, leaving a very vulnerable population without help in times of need.

In an effort to individualize emergency preparedness requirements, the new rules will apply to all 17 provider types, but will be different for each in order to receive certification. In order to comply with the rules, an annual training program will be implemented in order to ensure compliance and staff will be subject to drills and exercises to demonstrate their knowledge of the emergency rules.

Back to Basics: Your First Estate Planning Meeting

Published on: September 28, 2016 | by Ettinger Law Firm

The first time you meet with your estate planning attorney can be stressful and emotional. Many people go into the meeting not knowing what to expect. In order to make your first meeting as painless and hassle free as possible, here are a few things to consider ahead of time

Think About Your Wishes Beforehand

Come to the meeting prepared. During this meeting, you will be making decisions that will affect your future and your family for generations to come. Estate planning decisions should not be made lightly. The size of your estate and the unique makeup of your family can determine aspects of your plan. Consider your specific needs.

End of Life Counseling and Medicare

Published on: September 25, 2016 | by Ettinger Law Firm

Medicare was established by the federal government as a way to provide health insurance for people 65 years old and above, as well as younger people with disabilities. This program provides coverage through a variety of different plans for different services, such as skilled nursing home care, hospice care, doctor visits, outpatient care, as well as prescription drug services. Depending on the plan covered under, Medicare will pay for a specific amount of counseling services, which now will also include end of life counseling services.

Roughly 25% of Medicare spending is done for beneficiaries in their last year of life, and with the largest number of older adults turning 65 years old a day in United States history, end of life planning is more important than ever. While many doctors consult their patients about their wishes as they near closer to the end of their life, Medicare now will cover end of life care and advance care planning. Supporters of the change think that this will now allow doctors and other medical professionals to spend the time necessary with the patient to make these advance plans and have important conversations, since they are able to also bill for that time.

Currently only 17% of adults say they have had end of life discussions with their doctor or health care provider, but majority said they would want to have one. As of January 1, 2016, the Center for Medicare and Medicaid Services regulations for advance care planning will be in effect and directly cover costs instead of partially reimbursing any planning discussed. It will be billed to Medicare at $85 for the first 30 minutes to meet regarding explanation of advance directives and standard forms, and $75 for every 30 minutes thereafter. Medicare is currently working to establish a national final fee schedule for the counseling, and expects the Medicare administrative contractors to assist with that process for claims.

Future Federal Estate Tax May Look Different Depending On Our Next President

Published on: September 25, 2016 | by Ettinger Law Firm

The first presidential debate of 2016 was the most watched debate in United States’ history. The two candidates hold very different positions from each other and no more so than on the topic of the federal estate tax. The federal estate tax has a very checkered history in American politics, often serving as a talking point between the two biggest parties in Congress to emphasize how different each party is from the other and what purpose the federal estate tax should serve. No matter which candidate wins the office of the president, the federal estate tax is likely to change in the future.

Up and Down and Sometimes Not At All

Of course if any changes are made to the federal estate tax, it will be in line with its history. The only constant of the federal estate tax is that it is constantly changing. The federal estate tax was an early part of our nation’s history, but was repealed and implemented again over the decades. It was not until 1916 that the modern federal estate tax takes root and has been with us ever since.

What is a Discretionary Trust and When Should I Use it?

Published on: September 21, 2016 | by Ettinger Law Firm

What Is It?

A Discretionary Trust is another type of trust that is commonly used by a grantor seeking to distribute assets to a class of people or their family. Unlike a mandatory trust which requires distributions of income and principal be made according to a set schedule that is executed in the trust document, discretionary trusts allow the trustee to make determinations about when and how much beneficiaries are to receive in capital and income from the trust. Beneficiaries of discretionary trusts do not have entitlement to a specific interest in the trust, they have a right to be considered for the appointment of property or income from the trust

When and Why To Use a Discretionary Trust