Asset Protection

Understanding Testamentary Capacity Under New York Law

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

In order to make and execute a valid will under New York law, a person must meet certain requirements. One of these requirements is that the testator or person creating his or her will have testamentary capacity. Testamentary capacity refers to a person’s ability to understand and execute a will. Generally, most people over the age of 18 who have reached legal adulthood are considered competent to make and sign a will. They understand the nature of the document they are creating and signing, the property that will be passed and understand the effects that the document will have after their death.

One of the most common bases for contesting a will is that a person lacked testamentary capacity and for good reason. There are many ways a person can lack testamentary capacity and many of them relate to illnesses and conditions that are common in old age. In particular, challenges arising out of accusations of the testator being mentally incompetent or under undue influence are not rare, especially if the testator is of advanced age.

Mentally Incompetent

Diversification in Your Portfolio

Published on: September 8, 2016 | by Ettinger Law Firm

Depending on the purpose of a trust, a trust may be able to further sustain its’ life and generate additional income by investing the funds originally set aside by the grantor in a variety of investment tools. In order to generate additional income, a professional investor will seek to have a diverse portfolio established in order to mitigate any potentially large losses and keep your funds safe.

While the idea of hitting it big with one major investment is the dream of many, the reality is highly unlikely, thus, investing money in a wider range of areas is beneficial. While the investment team and trustee will be able to best assess the proper investments for your trust funds, each situation will differ and will be influenced by the risk the trust is willing to take as well as the timeline for distribution of funds needed.

Types of Investments

Estate Planning Under 40: Why You Need It

Published on: September 6, 2016 | by Ettinger Law Firm

Making an estate plan tends to be something people ignore until the last minute. These documents are considered important, but only for those who are old or dying. Why would a person under 40 need an estate plan?

Estate planning is a safety net. It is there if the unthinkable happens. If you die or are incapacitated, a proper estate plan can help to make sure your loved ones aren’t left to pick up the pieces.

Decision Making

Understanding the Law – Real Estate Investment Trusts

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

Real Estate Investment Trusts are an investment tool that allows an interested party the ability to invest in commercial real estate by buying a specific portion or interest of property. A Real Estate Investment Trust, or REIT, is a company that owns and also finances income-producing commercial real estate, generally for the purpose of investment and resale.

Many people who seek to invest their income and build a diverse portfolio look to add real estate due to its income producing potential. This investment tool allows an investor to own a share in several properties without having to front the major costs of purchasing an office building, apartment complex, industrial warehouse, or shopping plaza.

Why Add a REIT to your Portfolio?

Protecting Assets From Previous Marriages And Yourself

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

Protecting Your Estate

The divorce rate in America has sat steady at just below 50 percent for decades now. From out of the troubling reality that almost every other marriage fails is the issue that comes with the rights that ex-spouses may have on marital assets after the divorce. Your family could end up missing out on assets and an inheritance due to a lack of careful estate planning. In some cases, widowed individuals who survive their spouse discover later that they have limited or no legal right to assets from their deceased spouse’s estate. If you remarry after a divorce or death you will face unique estate planning challenges that others entering their first marriage do not have to deal with.

Retitling and Updating

Life Insurance and Business Succession Planning

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

Few people think about what will happen to their business after they die and therefore rarely put together a plan. Fewer may even think that a family or closely held business should be considered a part of their estate plan. However, for many small business owners, their financial interest in their business may be the largest asset that they have and represent most of the wealth that they will transfer at the time of their death. When transferring a family or closely held business, a well-funded life insurance policy can play a very large role in a smooth transition.

Providing For Your Children

There are a number of contingencies that a business owner has to consider when transferring their interest in their family or closely held business. While family businesses may be a truly family affair, with children working, operating and managing the business as well as the parents, it is a fact of life that not all of the children may be interested or suited to taking ownership of the business. In some cases, there might not be any children that wish to take over.

The Law – Charitable Trusts

Published on: August 27, 2016 | by Ettinger Law Firm

An Overview

A trust is established by an individual, referred to as a settlor, who seeks to have their property held for the benefit of another party. When it comes to charitable trusts, the settlor intends to have their property or assets transferred for the benefit of one or more charities.

Charitable ‘split interest’ trusts have a number of benefits, not only because they allow the settlor to give to both charitable and noncharitable beneficiaries, but they also reduce the amount paid in estate taxes, they eliminate capital gains, provide an income tax deduction and also provide for and benefit charitable organizations versus paying the IRS. There are two different kinds of charitable ’split interest’ trusts available, which differ depending on the property or assets you seek to donate to the charity, how you want the property to be distributed, as well as any wealth preservation measures you seek to have followed.

No One’s Favorite Inheritance

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

Parents believe that leaving their children the family home is a great boon but experience shows that beneficiaries are not happy with the bequest.

For many people in the United States chances are that their house is their most valuable asset. It makes sense then for most parents to leave their most valuable asset to their children. But this common inheritance is only a blessing for a small few of beneficiaries and a burden on most others.

Not A Quick Sell

New York Medicaid Law – Pooled Trusts

Published on: August 23, 2016 | by Ettinger Law Firm

Pooled Trusts Eligibility

Pooled Trusts are a type of trust applicable to those individuals who are seeking public assistance benefits, such as Medicaid, to become eligible financially by setting aside funds in a trust for additional needs. The trust allows its beneficiaries to preserve a specified amount of money in a trust to pay for supplemental care not covered by public assistance programs. For the elderly, many need public benefits assistance as they continue to age but do not qualify based on higher income. In these situations, a pooled income trust will benefit an elderly person by allowing them to continue their lifestyle, which is usually seeking to stay in the home, while also obtaining homecare services and paying for what their budget requires.

New York Medicaid Rules

IRS Proposal To Overturn Common Asset Valuation Planning Met With Fierce Resistance

Published on: August 22, 2016 | by Ettinger Law Firm

Newly proposed IRS regulations meant to curb common estate and gift tax planning tactics is being met with a firestorm of resistance from financial advisers and estate planners across the country. The proposed regulations (REG-163113-02) place limitations on the use of current valuation discounts that reduce the overall value of assets in family-owned businesses, thus lowering a decedent’s estate and gift tax liability at the time of death. The IRS hope to achieve this end by disregarding restrictions that enabled taxpayers to use these discounts in the past.

Wealth Preservation In Closely Held Businesses

Currently, interests in closely held businesses are not taxed the same as other property interests due to their illiquid nature. Many tax and estate planners put a family’s assets in a closely held business to reduce their estate and gift tax liability. While this is a boon for many families seeking to preserve their wealth, others argue that what started out as a helpful tax break for legitimate family businesses is being abused and exploited by those who have no legitimate use of it.