Blended Families Estate Planning

Estate Planning for the Estranged Child

Published on: December 1, 2022 | by Ettinger Law Firm

All too often a client comes in with a sad tale about an estranged child. Naturally, they are at a loss as to what to do about the situation when it comes to leaving that child an inheritance.

Years ago, the famous advice columnist Ann Landers wrote that her all time most requested column for reprint was on this very subject. Ann wrote that an inheritance should be considered a gift and that if the gift is not deserved one should not be expected. While that may have been good advice at the time and perhaps still is in most cases, like many things it is more complicated today.

In practice, we find that many of these once loving sons and daughters have married individuals with borderline or narcissistic personality disorders. Their spouses are manipulative and controlling. They seek to separate the loving son or daughter from their family so as to better control their spouse. The estranged child knows from experience that going against the wishes of their narcissistic spouse is like throwing gasoline on a fire — so they go along to get along.

Estate Planning Advice After Middle-Aged Divorces

Published on: May 5, 2022 | by Ettinger Law Firm

In the last few decades, the rate of divorce among middle-aged as well as older people in this country has risen. Studies of the issue have discovered that in recent history, the divorce rate for people over the age of 43 in the country has substantially increased. This increase in divorce is even more noticeable when focused exclusively on “gray divorce”, which involves people between the ages of 55 to 64.

Regardless of what caused this increase, the increase in the number of these divorces has raised some special considerations that should be analyzed concerning divorces. This article touches on just a few of those considerations.

Spousal Support

Demand for Estate Planning Increases As More Millennials Become Caregivers

Published on: March 14, 2022 | by Ettinger Law Firm

As the country enters a third year of living in a pandemic, estate planning is seeing an increase in millennials who are surpassing the baby boomer generation as the generation who performs the most caregiving for both children and aging parents.

Millennials are creating their own families, while simultaneously caring for their aging parents during a pandemic. This, in turn, is leading more caregivers to plan for the future. Even though millennials are taking responsibility for writing wills and creating trusts to establish families’ financial status, most adults in the United States lack an estate plan. Hopefully, by making digital estate planning as easy as possible, more people will create estate plans that achieve their wishes.

Key Findings from the Study

Court Reverses Injunction against Co-Trustees

Published on: July 13, 2021 | by Ettinger Law Firm

In the recent Texas of Marshall v. Marshall, a beneficiary initiated legal action against a trustee as well as five co-trustees of two trusts addressing claims that they had breached fiduciary duties. After the original lawsuit was filed in Texas, the trustee filed a petition seeking declaratory relief and requesting that the court declare the co-trustees were sufficiently appointed. The beneficiary obtained a temporary injunction preventing the co-trustees from receiving compensation as well as disposing of trust assets or participating in litigation.

The court of appeals reversed the litigation on the grounds that permitting the lawsuit to continue did not constitute a miscarriage of justice. The court of appeals also reversed other aspects of the temporary injunction on the grounds that there was no evidence to support that irreparable harm would occur otherwise.

The Role of Co-Trustees

Kinship Law in New York

Published on: November 17, 2017 | by Ettinger Law Firm

In New York, if someone passes away without a surviving close family member to inherit the estate, it becomes what is known as a kinship case. While most of us take the time to plan our estate by creating a last living will and testament or a trust to leave our assets to family members and close friends, not everyone is blessed to leave behind a loving family or close associates to pass on an estate.

Chapter 17(B) of the N.Y.S. Consolidated Laws codifies who is entitled to receive the deceased’s estate if he or she passes away without leaving a will. Typically, the surviving spouse is entitled to all of the deceased’s estate if the couple leaves behind no surviving children or grandchildren. If there are children, the surviving spouse receives the first $50,000 of the estate and then half or the remainder which will be split with the surviving children.

When children lose both their parents, the estate will be divided equally between the surviving children. But what if the deceased leave no wife or children? How far will courts and interested parties need to go to figure out who gets what? The answer depends on a variety of factors, including who the deceased leaves behind and whether any interested parties have passed away.

What’s In a Name: Choosing a Name for Your Trust

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

A Living Trust is an estate planning vehicle that helps you avoid probate by transferring property to the people and charities of your choice. The assets are held in the trust’s name and not in the name of the individual. For this reason, it is important to appropriately name the trust.

The Importance of a Name

Trust names are important to consider because in order for a trust to legally hold the assets or property, the trust has to be identifiable by its formal name. This name must be distinct and separate from your name.

Understanding Joint Ownership with Rights of Survivorship

Published on: July 16, 2016 | by Ettinger Law Firm

There are many ways to pass on your assets without having to go through probate. Any account or policy with a beneficiary designation, payable on death clauses or joint ownership with rights of survivorship will not be considered to be a part of a probate estate. Those assets will pass to the person designated or the other joint owner at the time of your death. Despite being handy estate planning tools that help assure that the assets in question are never out of reach or frozen, many people fail to understand the nuances and rights associated with such designations and it is this failure that can frustrate and cause unintended consequences when dealing with a person’s estate.

Only After You Pass

Many people are familiar with a beneficiary designation on a life insurance policy. After you pass, the insurance company gives the money from the policy directly to your beneficiary avoiding probate. Similar to a beneficiary designation is what is called the payable on death clause (POD). At the time of your death, your designated beneficiary can claim the assets in the account by showing a death certificate, similar to claiming a life insurance policy. The designated beneficiary has no claim to the assets in the account while you are alive and cannot withdraw or otherwise dispose of them.

Family Feud Forever: Dr. King’s Family Squabbles Continue

Published on: June 19, 2016 | by Ettinger Law Firm

Dr. Martin Luther King Jr. left behind a legacy of peace and understanding, but he may have been surprised by the legacy that his estate is forging. Last Friday, a Fulton County Superior Court Judge declined to make a ruling in a dispute over two items left behind by Dr. Martin Luther King Jr, his Bible and his Nobel Peace Prize. Fox News reports that the case over these two items is likely to go to trial, with King’s estate, controlled by his two sons, against their sister, Bernice. This is only one of many lawsuits that have crept up in years past over the legacy of Dr. King.

Managing Estate Assets and Legacies

Dr. Martin Luther King Jr’s estate is not technically what many would consider an estate in the traditional sense. It is not a probate estate, with his assets being liquidated according to his will. Rather, Dr. King’s estate is the for-profit Martin Luther King Jr. Estate Inc. with his three surviving children being the sole shareholders and directors. As the sole shareholders and directors, his three children control Dr. King’s name, image, likeness and his possessions.

BACK TO BASICS: WRAP AROUND PLAN FOR ALL CONTINGENCIES – ADVANCED MEDICAL DIRECTIVES

Published on: January 26, 2016 | by Ettinger Law Firm

As the new year opens it is a good time to review all of your legal estate planning decisions and tweak any previous documents that you think need to be modified. This requires us to get back to the basics of estate planning . For those scenarios that deal with what happens to you in an emergency situation, you have an advanced medical directive, with some level of specificity but not too much. The term advanced medical directive is an umbrella term that encompasses several types of legally significant documents. One of them is a living will. Your living will tells the medical professionals who are treating you, what your wishes are in advance for any number of medical situations.

HEALTH CARE PROXY

Underneath the umbrella term of advanced medical directive, there is also the health care proxy. The health care proxy allows for you to appoint a trusted person to act as a decision maker for those scenarios that are not contemplated in your living will and if you are unable to make any medical decisions by yourself. Medical conditions change, different doctors have varying opinions as to the best course of treatment or even over the correct diagnosis. Having a health care proxy will have someone stand in for you to make the best decision under the circumstances. You can limit the authority that you give to the person or only permit the health care proxy go into effect after certain conditions or triggers occur.

INHERITING A LEASE

Published on: December 12, 2015 | by Ettinger Law Firm

VALUABLE ASSET

A residential lease in New York City or any desirable locale can provide many benefits. Some people wait years to get into a rent stabilized apartment. There is even a Seinfeld episode where Elaine quips that some people scan the obituaries to see if someone in a rent stabilized apartment has passed away. It is a common occurrence for many people to live decades and raise generations of families in their rent controlled rental unit. Many cities have their own laws dealing with how to inherit these leases. New York Real Property Actions and Proceedings §236 law deals permits an estate to inherit the lease of a deceased person and New York Estate Powers and Trusts Laws §13-1.1(a)(1) also holds that a lease is an asset of an estate. In addition, many local laws housing and regulations also mandate how and when a lease may be inherited. New York City ended its Rent Control laws in 1971, yet still has approximately 38,000 rental units listed under the old Rent Control laws, as once the lease is under the Rent Control law it remains until it is no longer. Going forward New York leases are generally covered by Rent Stabilization laws, also covered by the same laws dealing with succession of a residential lease. Rental units under the rent stabilization laws are the most common type of residential lease. These leases will remain for so time due to the right to succeed these leases by other family members or even friends. Most particularly, New York Code, Rules and Regulations §2532.5(b) allows for family members to succeed the lease. Landlords have been known to fight like the devil to regain possession of these rentals, sometimes offering cold hard cash, from $40,000 on the low end to $17,000,000 on the high end.

HOW TO INHERIT OR SUCCEED – COHABITATION