Estate Administration

Surviving Spouses Should Seek Help From Financial and Legal Professionals

Published on: September 22, 2011 | by Ettinger Law Firm

Few spouses are thinking clearly after they lose their partner. Yet, it is usually at that time when many major financial and legal decisions must be analyzed and made by the grieving widow or widower. Our New York estate planning lawyers know that families are able to provide much relief at this difficult time by preparing ahead. As a Wall Street Journal story this week explained, proper estate planning not only eases stress for the surviving spouse, but it also may prevent legal and financial mistakes being made by that spouse in the immediate aftermath of the death which could be impossible to undo down the road.

For example, some grieving widows and widowers believe that they have little need for insurance benefits following the tragedy. However, as one professional in the field explained, “if you have been living on income from two people, you should get an idea of what your monthly expenses are before you’re magnanimous with the money you just received.” In addition, many individuals make quick decisions about the sale of a home or the transfer of other valuable assets without fully considering the long-term effect of those actions.

Following a death in our area it is vital for families to contact a New York estate plan lawyer to receive assistance with the wide variety of tasks that must be completed. The estate transfer process can be time-consuming and stressful, especially if professionals are not consulted and mistakes are made. For example, pension plans need to be notified of the death. Those involved have to determine what debts of the deceased must be paid and which do not need to be paid. Survivors must also be cognizant of what funds they can use to pay for expenses after the death. Sometimes a spouse may have been using a power of attorney to write checks out of the deceased’s account. That authority ends at death, which means that the survivor may not technically have the authority to access the funds.

Estate Plan Still Needed to Divide Properly Equally Between Children

Published on: August 18, 2011 | by Ettinger Law Firm

Some local residents believe that they do not need to worry about creating a New York estate plan if they only want to divide all of their assets between their children equally. These community members are under the incorrect assumption that the default legal rules will ensure that everything works out as they wish. Unfortunately, this is rarely the case.

This weekend My SA News discussed this all-too-common mistake of voicing intent to be even-handed with asset distribution but not taking the proper legal steps to carry out that intent. For example, the story used the real example of a family with two parents and five daughters. Both parents had been married to one another their entire lives with no divorces. They did not conduct any estate planning because they always explained that they wanted everything to be divided equally among their children at their death. They did not even have wills drafted.

However, their actions did not reflect that voiced intention, and there was no plan in place to protect the family. For example, after the father died, the mother deeded the family home to the first sister. Later, a second sister deeded another house to the mother, but upon the mother’s death that sister wanted the home back. A third sister visited an attorney and asked for help. She wanted the family home and the second home to be divided equally among the children as the parents always wished.

New Website Services Offers Online Method of Distributing Personal Property

Published on: August 10, 2011 | by Ettinger Law Firm

Most New York estate plans have various components and include several legal documents. Most will have a Revocable Living Trust, Medicaid Asset Protection Trust, or both. A pour-over will is also frequently added as a failsafe to cancel an old will and ensure that any assets left outside the trust are brought into it after death. The plan will have various other facets, including a Power of Attorney, Health Care Proxy, burial instructions, and other final instructions for a family.

In addition, a common practice is to leave a list which indicates which valuables will go to each heir. This list is usually handwritten and specifically requests that a trustee honor its terms. In this way, if a client changes their mind about the distribution of their personal property they can simply handwrite a new list without needing to visit their attorney to cement the change. This step is important because many local families experience in-fighting when trying to distribute sentimental personal property without the guidance offered by a New York estate plan. When more than one family member wants the same item, the stage may be set for strong disagreements that often profoundly and permanently affect relationships. Most family members are under immense stress at the time of a passing which makes the situation even worse.

A few online web services have recently sprung up which claim to help families distribute this property in a fair manner. For example, one of the more popular services is eDivvyup. The website essentially sets up a family auction using non-monetary “credits.” A family first selects an “executor” to set up the auction by cataloging personal items, inviting family members to participate, and assigning credits. Each family member then visits the site and places bids on items of interest to them using the non-monetary credits they are provided. The auctions usually work like eBay, spanning anywhere from a day to several weeks. The goal is that by the end of the auction each family member will have gotten the fair chance to indicate which items mean the most to them.