New York estate plan attorney

Removing a Trustee in New York

Published on: May 21, 2017 | by Ettinger Law Firm

Selecting the right trustee to administer your estate is a crucial part of ensuring that your assets are distributed according to your wishes and that your estate is settled correctly. While many people can and should put a great deal of thought into selecting a trustee to administer their estate, the process of selecting a trustee often stops there. Whether a trustee is a financial institution, attorney, or close family friend, you need to include a mechanism to remove that trustee if the need to do so arises. An experienced estate planning attorney can help you design this type of mechanism, which could help your loved ones avoid the often-lengthy legal process of removing a trustee in the absence of formal instructions.

When can a trustee be removed?

There are many reasons you may wish to revise your estate’s trustee. Perhaps you originally selected a family member that has become estranged because of divorce. You may have selected a sibling that has predeceased you. If you nominated a financial institution, it could have been bought out by another company that you don’t want to deal with. Whatever the reason for wanting to remove a trustee, New York law states that the following constitute some legal reasons for a court to remove a trustee:

Roth IRAs and Estate Planning

Published on: May 18, 2017 | by Ettinger Law Firm

When people think of estate planning, they do not automatically think of utilizing retirement planning strategies to maximize their estate’s potential. However, there are many benefits available during retirement that can have a significant impact on how you plan your estate. One such vehicle that can allow for more comprehensive estate planning is a Roth IRA. Roth IRAs are a type of retirement savings account similar to a traditional IRA but with some very important differences that could be beneficial to you. CNN Money provides an explanation of the differences between the two types of accounts, and some of the benefits of Roth IRAs that could be applicable to your estate are discussed below.

Benefits of a Roth IRA

The main benefit of a Roth IRA is that it is funded with after-tax dollars. In other words, the money you put into it has already been taxed. That means that money invested into the account can grow tax free and you do not have to pay taxes on the money you withdraw from it at retirement. There are, however, potential tax penalties associated with unqualified early distributions that an experienced estate planning attorney can help you understand.

Estate Planning and Buy-Sell Agreements for Your Business

Published on: May 16, 2017 | by Ettinger Law Firm

Comprehensive estate planning can be an extremely complicated process for an individual. This is even more true when the individual owns a business. The owners of closely held businesses own businesses with a limited number of shareholders and the stock in such businesses is not regularly traded publicly. While this type of business can provide many benefits for business owners, it can also create issues when one of the business owner dies. However, structuring a buy-sell agreement for a closely held business can help make estate planning easier when it comes to your interest in such a business.

Redemption Agreements

With a redemption agreement, the company itself purchases a life insurance policy on the various owners of the company. When one of those owners die, the sole owner of the life insurance policy – in this case, the company – will receive the benefits of the life insurance policy and can buy back the deceased shareholder’s shares. There are some potentially negative tax consequences for this type of arrangement, including the possibility of the business to be subject to the current corporate alternative minimum tax on the proceeds from the life insurance policy.

Tips for Selecting a Guardian for Minor Children

Published on: May 13, 2017 | by Ettinger Law Firm

Comprehensive estate planning is a deeply personal process. There are so many different factors to consider, and working with an experienced estate planning attorney can help streamline the process and ensure that you explore all of the aspects of estate planning that pertain to you. One of the most difficult parts of comprehensive estate planning is selecting a guardian for your minor children if both parents should become deceased or incapacitated at the same time, leaving neither able to care for any shared children. As difficult as the process can be, it is extremely important to undertake it so that the best interests of your children are provided for in a worst-case scenario. The following are some tips in approaching the guardian selection process and provide some important considerations for you to remember when selecting a guardian, and an experienced estate planning attorney can help you with the process.

Choose Compatible People

Most people put a great deal of planning and thought into how they choose to parent. It is important for your peace of mind as well as your children’s well-being that you select individuals that share a similar parenting style and outlook. If academics are important in your household, make sure that they are also important to prospective guardians. Additionally, making sure that individuals you are considering as guardians are ready to undertake the responsibility that comes with it is extremely important.

Beneficiary Forms and Estate Planning

Published on: April 20, 2017 | by Ettinger Law Firm

Understanding the different aspects of estate planning is a crucial part of creating a comprehensive estate plan that accomplishes your individual goals. For probate assets, many individuals utilize a Last will and Testament to direct the distribution of assets subject to probate. Non-probate assets, such as life insurance policies and assets held within a trust, are distributed upon death according to the mechanism for distribution contained within the asset and are usually directed by the nomination of a beneficiary. It is extremely important to remember beneficiary nominations when creating, reviewing, and revising your estate plan.

Common Beneficiary Pitfalls

One common beneficiary pitfall occurs with assets like bank accounts that often have a payable on death beneficiary option. With these options, a bank is directed to distribute assets within the account covered by that designation to the person listed as the payable on death beneficiary. This can cause unintended problems if your Last Will and Testament directs your bank assets to be distributed differently, and may result in an unintended Will contest that could jeopardize other aspects of your Will. Making sure that beneficiaries for these types of assets are properly aligned with other provisions of your estate planning documents is an important part of ensuring your wishes are carried out.

Millennials and Estate Planning

Published on: April 18, 2017 | by Ettinger Law Firm

Estate planning can be an uncomfortable and confusing topic for many people. Nobody necessarily likes thinking about what will happen when they die. However, estate planning is an important activity for adults to consider, even those in their 20s and 30s. A recent article from USA Today highlights the need for millennials to consider estate planning as part of their plans as they move forward. In fact, the article cites a 2015 study that found more than 60 percent of Americans don’t have a will. This number likely includes a disproportionate number of millennials.

Responsible Financial Planning

Responsible, comprehensive financial planning doesn’t just involve being good with money. In the still-lingering shadow of the most recent recession and with an increased potential to carry large amounts of student loan debt, it isn’t uncommon for millennials to have a sense of the importance of treating money responsibly. However, while short-term money management can provide the foundation for a lifetime of financial stability, it is important to keep long-term financial planning in mind, too. Long-term financial planning includes the creation of a comprehensive estate plan that includes documents such as a Last Will and Testament, power of attorney, trust, and/or other related financial planning documents. As the article notes, these things are not just important for older adults – but for everyone.

Business Ownership and Estate Planning: Recapitalization

Published on: April 15, 2017 | by Ettinger Law Firm

The estate planning process can be complex and confusing, which is one of the reasons it is a good idea to work with an experienced estate planning attorney as part of creating a comprehensive estate planning strategy. This is especially true for business owners. Recently, we wrote about some important estate planning considerations for business owners. One potential question many business owners may have when considering estate planning for their business is whether or not it is a good idea to remain in control of their business or transfer their business to their heirs.

When a business owner wants to remain in charge of their business, this can be a difficult question because transferring the ownership of a business can often mean transferring the management responsibilities of the business, too. While the answer as to whether or not remaining in control of your business is right for you depends on each business owner’s individual circumstances, one possible technique to consider is business recapitalization. Business recapitalization will allow you to separate ownership from management, and could be the right strategy for you.

Benefits of Recapitalization

Creating a New York Health Care Proxy

Published on: April 13, 2017 | by Ettinger Law Firm

Comprehensive estate planning involves more than just creating a Last Will and Testament and possibly a trust for your heirs. Estate planning is also an opportunity for you to make sure that your wishes for end-of-life care and other related decisions are known to those who will administer your estate, your loved ones, and your estate planning attorney. For many people, part of end-of-life planning and care often includes nominating a Health Care Proxy. The State of New York Office of the Attorney General offers individuals some clarification and advice related to a New York Health Care Proxy.

Health care Proxy: An Introduction

In New York, a Health Care Proxy is available to anyone over the age of 18. The purpose of a Health Care Proxy is to allow you to appoint a trusted person to make health care decisions for you should you be unable to make such decisions yourself. The inability to make health care decisions could arise because you are being kept alive via artificial means such as life support machines or even because you are unconscious for certain medical reasons. When a health care agent has been entrusted with the authority to remove you from or prevent you from undergoing potentially life sustaining treatments or procedures, New York requires that a second doctor must confirm the original doctor’s determination that you are unable to make your own health care decisions.

Estate Planning Reminder – Planning for Pets

Published on: April 8, 2017 | by Ettinger Law Firm

Dogs, cats, parakeets, horses, iguanas, ferrets…no matter the pet you have in your life, chances are you treat them more like family than just a possession. We want to make sure our pets are comfortable, have the best food, have plenty of entertainment, are healthy, and enjoy a long, happy life. It is possible to make sure that those conditions exist for pets even after pet owners pass away. By utilizing a trust, you can help make sure that your best friend is well taken care of.

Pet Trusts

A recent article in USA Today talks about the function that a pet trust can serve. Pet care can be very expensive. There are grooming costs, medical costs, food costs, and other costs related to keeping a pet. Generally, the bigger the pet, the greater the cost of care can be. In fact, the article notes that Americans spent roughly $62.8 billion on pet care in 2016. While pet trusts are certainly less common than trusts created for human heirs, they can serve an important purpose in making sure that any pets you have can enjoy the same quality of life after your passing that you were able to provide for them.