New York Estate Planning & Elder Law Blog

Trust Settlement & Disbursement after Beneficiary Death

Published on: November 2, 2016 | by Ettinger Law Firm

Upon the happening of an event described in a trust, whether it is a term being met, a beneficiary reaching a certain age, or the death of a certain party, the trustee must settle the trust, terminating it and distributing the assets out. While sometimes these terminating events can be easily foreseen and planned for accordingly, such as a beneficiary reaching age attainment, other events may be more sudden. These sudden events, such as an unforeseen death, can cause particular difficulty for those administering the trust as well as those seeking the trust continue to pay for certain expenses, including funeral costs.

When the event occurs, the trustee, in most states, must either file paperwork with the court or notify all the of the beneficiaries of the event, the trust’s consequential termination, and next steps for distribution. This release is required in order for the trust to distribute out and for the trustee’s duties to terminate. The trustee’s acknowledgement of the event insulates the trustee in the event that the estate or any of its beneficiaries attempt to bring legal action against the trustee.

What many beneficiaries of a trust do not realize is that upon the happening of the event, as of that day, the trust going forward can no longer allocate any assets to pay costs that may have formerly been taken care of by the trust, such as real estate taxes or various bills. The trust must act as if it is then frozen in time in order to preserve what will eventually be distributed out. While it can be inconvenient in terms of timing as well as financially, the trustee can no longer pay out or make distributions on behalf of the trust because it fails to exist and the will of the grantor is no longer known.

Estate Planning for the Single & Childless

Published on: November 2, 2016 | by Ettinger Law Firm

Estate planning for families is important. It allows a person to plan for the care and wellbeing of their family members and loved ones long after they have passed. What about people who do not have families to consider? More and more people are staying unmarried; according to the U.S. Census Bureau, 45% of adults were unmarried in 2012. Many adults are also childless, either voluntarily or involuntarily. These lifestyle choices do not, however, mean that estate planning is any less necessary.

Planning for Your Self

Estate planning isn’t just about planning for the distribution of your assets after your passing. It is also the only way to ensure that your wishes are carried out when it comes to medical care, end of life procedures, and funeral plans.

Estate Planning & Financially Dependent Adult Children

Published on: October 31, 2016 | by Ettinger Law Firm

According to the Pew Research Center, more Americans age 18-34 are living with their parents than in any other living situation. Over 32% of people in that age group live in their parents’ house which leads to an interesting estate planning dilemma for the parents.

While some adults who live with their parents are financially independent providing for their own daily living expenses and even paying rent, many living at home are in some way, shape or form financially dependent on their parents. This dependence can make estate planning even more important.

Discuss Your Plan

The Role of a Trustee and Their Discretionary Power

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

Trustees serve a very important role in the effective administration of a trust. The maker of the trust document, the grantor, gives another neutral third party, the power to administer the terms of the trust throughout the lifetime of the grantor and after, if the terms of the trust provide so. The trustee is essentially in charge of managing all the assets of the trust, without taking an interest in them. While a trustee can also be the maker of the trust, many people elect another individual, or a corporate trustee to continue administering the trust upon their death.

There are some express terms that a trustee must follow, such as:

Keeping separate the investments and accounts of the trust,

Female Focused Estate Planning: Distributing Assets

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

Estate planning is vital for all people wishing to have control over the distribution of their assets following their death. Women, in particular, should take time to plan their estates. In the U.S., women control nearly 40% of the nation’s investible assets and nearly half of those assets are managed solely by women.

Surviving Spouses

Many women outlive their husbands by a number of years. Outliving your partner tends to mean that you inherit their estate. Most spouses will be sole beneficiaries of each other’s’ estates. This means that the surviving spouse will be in full control over the final disposition of the assets. If your spouse didn’t make plans and you are aware of special instructions or requests they would have wanted, it is your job to make those plans now. For instance: if your spouse had children prior to your marriage and wanted them to have an inheritance but didn’t plan, it is now up to you to decide whether or not to include those wishes in your own estate plan.

Female Focused Estate Planning: Parental Plans

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

Many single mothers often overlook estate planning. It can be easy to put off these important decisions. Life is busy and making plans for your demise is something that no one wants to make time for. Well laid estate plans are the greatest possible gift you can leave your family.

Guardians

According to the U.S. Census Department, 81.7 percent of custodial parents are mothers. For single mothers, planning for the care of their children is one of the primary concerns of their estate plan. While no mother wants to even consider what will happen to their children if they aren’t around to raise them, not having control over that decision is even more alarming.

Financial Elder Abuse: Warning Signs and How to Stop It

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

Elder abuse has been an increasing trend over the past few decades, within roughly one in ten Americans over 60 years of age experiencing elder abuse, whether it be financial, harassment, sexual, physical, or passive abuse through neglect or deprivation. Of the elders subjected to abuse, over 90% of those Americans are abused by someone they know, either a family member, friend, acquaintance, medical staff employee, or caretaker.

Predators seek out opportunities with the elderly in order to become involved in their lives and then later exploit them in their most vulnerable state. Often times, an individual will claim to be helping the elder individual, either by assisting in caretaking or house keeping, and then will later bill them for an exorbitant amount of money or get ahold of their checking account to pay themselves.

Warning Signs

Back to Basics: How to Include Health Care in Your Estate Plan

Published on: October 24, 2016 | by Ettinger Law Firm

For people who reach age 65, the odds of needing long-term care benefits during their lifetime are nearly 70 percent. People are living longer and in turn needing care in their old age. On average men require 2.2 years worth of care and women require 3.7 years. Preparing for this level of care and any other type of medical care you may receive requires forethought and careful planning.

Appointing a Health Care Agent

We’ve previously discussed in this blog New York’s Family Health Care Decisions Act and the appointment of a patient’s family member or close friend to act as a surrogate decision maker for a patient who has become incapacitated. This act allows close relatives to make decisions even if the patient had never given them decision making power.

Back To Basics: Steps To Take Following The Death Of A Loved One

Published on: October 21, 2016 | by Ettinger Law Firm

The passing of a loved one is not easy. The closer you were to the deceased the bigger a toll that it takes on you mentally and emotionally. You may experience anger, frustration, and numbness as you seek to process the passing. As you begin to contemplate what you must do next, you experience a feeling of being overwhelmed with facing the unexpected. All of these feelings are a part of the normal process of grieving and it is typical for a person responsible for handling the deceased’s estate to feel overwhelmed. Thinking ahead of time and knowing what to expect can reduce these feelings and help make the overall process go more smoothly.

Beyond the Funeral Arrangements

Many people are already familiar with arranging a person’s funeral, burial or cremation. After you have made arrangements for a funeral service, a viewing, the burial, cremation or spreading of the ashes, there are still a number of actions that must be completed to wrap up the deceased’s affairs. It is of the utmost importance that you contact all relevant people and organizations that need to know of the deceased’s death.

Types of Special Needs Trusts

Published on: October 21, 2016 | by Ettinger Law Firm

There are three main types of trusts for special or supplemental needs. Each has their own specific purpose and use, and will apply differently for every party.

First Party Special Needs Trusts

The first party special needs trust was developed to be funded with assets owned by the trust beneficiary in order to help them qualify for government benefits. This type of trust is usually established when the intended beneficiary is about to receive either a lawsuit settlement, inheritance from an estate, a large gift, or assets, that would disqualify him from receiving supplemental security income. Supplemental security income has a qualifying threshold that the beneficiary must meet; the individual cannot possess personal assets that equal over $2,000.