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Our lawyers recently heard of a divorced individual who passed away and left two children below the age of 18 years. When the person passed away, the individual had no will in place. As a result, it was uncertain who the deceased individual wanted to appoint as a personal representative of the estate. 

Remember, a person passes away without appointing a personal representative, New York law dictates who can apply to be appointed as a personal representative. Because the deceased individuals were below the age of 18, they could not apply to the court for appointment as personal representatives. 

The surviving family filed the appropriate paperwork with probate court hoping for the nomination of a conservator for each child. After the court-appointed conservators, the conservators selected a personal representative for the estate. The person chosen by the conservators then filed paperwork requesting the appointment of a personal representative. This person then gathered all of the deceased parent’s assets, paid the deceased person’s creditor claims, and then divided and transferred the remaining assets to each minor child’s conservator. These conservators must hold assets for the children until the children reach eighteen years of age. This case took a long time to resolve and involved substantial costs. Besides court fees, accounts, conservators, and lawyers also had to be paid. 

If you receive an inheritance but are also married, the person who passed on an inheritance to you likely intended only to benefit from these funds. If you end up getting divorced, you’re probably left wondering how you can guard the inheritance. Most assets gained by a couple during a marriage are viewed as marital assets, but there are exceptions to this. 

Some exceptions to marital property in New York include bequests from the estate of a deceased relative, gifts made to the individual by a non-spouse, and certain types of compensation for personal injuries. Divorce can make how this property is handled complex. 

While assets inherited by only one spouse often are not subject to property division during the divorce process, courts have the authority to split inherited amounts if it is determined that not separating these assets would create hardships for the other spouse for children who are the product of the union. This article reviews some of the helpful steps that you or a loved one can follow to make sure that inheritance is protected.

The year 2021 began with President Biden assuming his role in office. Democrats now control the House as well as the senate. As a result, many people are anticipating what changes the left has in store. While the introduction of tax changes has been discussed, it’s still too early to anticipate what will happen. The Covid-19 pandemic, however, will likely postpone estate planning changes. Given the changes that likely lie ahead, it’s important to do what you can to stay ahead of what might be coming.

Estate Tax Exemption Level

One anticipated change is that the estate tax exemption will drop to $5 million or lower. This change would lead to people utilizing various unique estate planning strategies. Some people have voiced the concern that if they pass away up to the current estate tax exemption of $11.7 million and later pass away when the exemption has been lowered to $5 million, they will owe estate tax on the lower amount as well as whatever assets are still found in their estate. The Treasury has provided directions as well as stated that they will not claw back gifts made before 2021, which afforded taxpayers the option to decrease their federal estate by transferring assets immediately and then drawing appreciation.

Disputes involving conservatorship and guardianship fall under the purview of probate litigation, while trust and will debates also fall under this category. The best approach to not mitigating the risk of probate litigation is to plan. Your plans may very well include comprehensive estate plans as well as measures to resolve incapacity issues and documentary evidence that supports gifts. 

The Creation of Wills and Trusts

Creating a will before a person passes away allows the creator the chance to both control and communicate their wishes for how their assets should be handled. The creator of a will is also able to nominate either their personal representative or the person charged with administering their estate. By creating a will, your estate plan will not be subject to the control of New York’s intestacy law. Individuals who create wills are instead permitted to have the terms of their will dictate the distribution of their estates and resolve their affairs. A nominated personal representative has the capacity to act in such a position. Without this appointment, surviving loved ones are often left to fight over how an estate is administered. Without the will’s creator appointing such a person, loved ones often fight over who is suited for the job. Additionally, the terms of a will must be clear and inarguable to anyone who reads them to reduce the risk of future litigation. 

Many times when a widow remarries, unseen financial challenges in addition to a new marriage occur. Unfortunately, this means that many times what widows see as great matches quickly evaporate into economic despair. Fortunately, financial advisors and estate planning attorneys can help to avoid such undesirable results. 

 
Remarriage leaves widows financially exposed. Various strategies, however, can greatly reduce this risk while also protecting assets from a new spouse who might have questionable intentions. Many couples, unfortunately, overlook the fact that what most widows want more than anything is to feel safe and secure about the future. This article reviews some helpful estate planning steps whether you’re a recent or long-time widower to make sure that your assets remain protected.

 
Beneficiary Designations

As they look towards the end of their lives, most people want nothing more than to spend every day independent and in their own homes. In reality, however, this is not always possible. Deciding to play a loved one in a nursing home can be a difficult decision and can leave those who helped make the decision plagued with uncertainty and guilt. Despite these negative feelings, it’s often necessary to place a loved one in a nursing home. 

Fortunately, even if your loved one has recently had to enroll in a nursing home, you can still be there for them. While you might not be your loved one’s primary caregiver now, you still can play an influential role in making sure whether or not they are happy. This article reviews some helpful strategies to remember if you want to continue playing a positive role in your loved one’s care after they enter a nursing home. 

Acknowledge that the Change Is a Necessary One