New York Estate Planning & Elder Law Blog

Approaching Tax Law Changes That You Should Know

Published on: October 16, 2021 | by Ettinger Law Firm

Democrats in the House of Representatives recently released their plan on how to adjust basic income and estate taxes for both businesses and families. While it’s impossible to provide a comprehensive review of what these various pages contained. This article addresses a few of the major announcements.

Only a few of the proposed changes would end up impacting either transactions or transfers that are made before the Act would be passed and many of these changes would not be implemented until January 1, 2022, but people who are being advised to transfer substantial values to irrevocable trusts as gifts before exemptions amount are lowered by half or people might be required to plan to gift the amounts to people or entities other than grantor trusts.

Estate and Gift Tax Exemptions

Lessons Learned from the Management of the Late James Brown’s Estate

Published on: October 12, 2021 | by Ettinger Law Firm

A June article in the New York Times reports that progress is finally occurring in the resolution of the estate of the late James Brown. Despite a clear intent that his estate is used for underprivileged children in Georgia and South Carolina, however, the late James Brown’s estate is yet to be used in such a way. This article reviews some of the helpful tips that the late James Brown could have followed to avoid facing such obstacles.

# 1 – Understand the Nature of Your Assets

If your estate includes music ownership rights or any other type of intellectual property, it’s a good idea to gain a basic understanding of the nature of these rights and how they can be handled in your estate. One of the rights held by musicians is the right to perform or play a piece publicly, which is more commonly known as “performance rights”. When a person passes away, these rights can dissolve and become lost if not properly handled.

The Challenge of Dealing with Children Born During and Outside Marriage

Published on: October 8, 2021 | by Ettinger Law Firm

The difference between children born during a marriage and those born outside of marriage might seem insignificant, but this issue can become a substantial one for people who are navigating estate planning issues.

In a recent case, Hollywood producer Steve Bing passed away with two illegitimate children. Steve’s father had created various trusts for the benefit of future grandchildren in 1980. Before Steve’s death, some litigation had occurred involving trusts. The dispute arising from the trusts addressed the meaning of the word, “grandchild”, as it was used in the trust’s tools. The trustee had taken on the view that “grandchild” did not include grandchildren born out of wedlock who had not lived as regular members of their natural parent while minors. Steve Bing had not resided with his children as regular members of his household.

This case raises issues common to many jurisdictions in respect to definitions used in trusts as well as other estate planning tools.

Utilizing an Able Account to Care for Loved Ones

Published on: October 4, 2021 | by Ettinger Law Firm

A family with a disabled child faces countless obstacles. For many years, one of the best estate planning tools for parents in such a situation was a special needs trust. These trusts provide resources to care for disabled children while making sure that the child remains eligible for means-tested government benefits.

Many people lately have realized that Achieving a Better Life Experience (ABLE) Accounts can also be helpful. Signed into law in 2014, ABLE Accounts were created by Internal Revenue Code Section 529A which authorizes the state to offer tax-advantaged savings accounts for blind and disabled individuals.

How ABLE Accounts Are Structured

5 Types of Estate Planning Documents You’ll Need

Published on: October 4, 2021 | by Ettinger Law Firm

Many people make the mistake of thinking that they don’t need to engage in any type of estate planning. While you might not be one of the 1% in regards to financial wealth, you should still give great thought to what you would like to have happen if you become incapacitated or pass away. Various estate planning tools exist, but this article reviews six of the most helpful estate planning documents that you should consider creating.

# 1 – Beneficiary Designations

Retirement accounts, as well as life insurance death benefits, are distributed through beneficiary designations instead of through the terms of a will. As part of your estate plan, it’s a good idea to both review and update your life insurance policy and retirement account, particularly following major events like death and divorce. Remember, if you fail to update these designations, undesirable results can occur. Beneficiary designations also have important tax repercussions under the Secure Act. Under the Secure Act, some beneficiaries are no longer able to distribute retirement account assets over their lifetime.

The Basics: Estate Planning Issues for the Unmarried

Published on: September 30, 2021 | by Ettinger Law Firm

Estate planning should be tailored to fit your unique situation. Each person has their own list of objectives that they must achieve. The issues that unmarried people must address are different from those that need to be tackled by married couples. This article reviews some of the common issues that arise when unmarried couples engage in estate planning.

Taking Domestic Partners Into Consideration

Married couples are bestowed under the law with certain rights and obligations that unmarried individuals simply do not have. State laws for married individuals involving property division do not extend to people who are in relationships but not married. Laws are not the same for unmarried individuals in case of a break-up or death. With adequate estate planning, unmarried people can create estate planning documents to make sure that their wishes are carried out when it comes to things like estate planning.

Study Reveals Turning 65 Greatly Lowers Health Care Costs

Published on: September 28, 2021 | by Ettinger Law Firm

When people in the United States qualify for Medicare on reaching the age of 65, they often notice a substantial decline in medical costs paid out-of-pocket.

A new study recently discovered that reducing the eligibility age would save even more for people. The study’s lead author, an assistant professor of cardiac surgery at the University of Michigan’s Medical School, found that these savings would be most profoundly felt by those who most need financial protection.

The study examined out-of-pocket health care costs including co-pays and deductibles for individuals in their late 50s to early 70s. The average out-of-pocket cost declined 27% between the ages of 64 to 66 even though income remained the same. Meanwhile, average health costs paid by individuals and insurance increased 5%. Meanwhile, the percent of older individuals lacking health insurance decreased from 5% to almost 0% from ages 64 to 66. The study made note of older individuals whose health care costs consumed 40% of their income after food and housing. This category included 9% of uninsured 64-year-olds but dropped by 35% for 66 year olds. Not having medicare benefits likely contributed to the fact that approximately 6% of 66-years-old spent more than 40% of their disposable income on health care costs.

Things You Should Know Before Your Writing a Will

Published on: September 25, 2021 | by Ettinger Law Firm

Many people fall into the trap of thinking that wills are only for the wealthiest individuals. Other people falsely believe that because they are young, there is little to no reason to write a will. In reality, life is overwhelming and unpredictable. As easy as it is to assume that estate plans are for other people, it’s also important to understand that death will occur regardless of whether or not one would like to avoid it. If you fail to create an estate plan, there will be no designated individuals to receive your assets after you pass away. In these situations, New York law will dictate how your assets are divided as well as where your assets are transferred.

To make matters even more complex, only one in every three people in the United States is reported to have a will. This equates to only half of the people over the age of 55 having an estate plan. Any person, however, can benefit from having a will even if this makes things easier for survivors who have recently lost a loved one. It’s also important to remember that wills need not be complicated and that a person can write one without having to spend a substantial amount of money. This article reviews some important details to consider if you’re considering creating a will.

Consider Your Goals

Performing Successful Estate Planning When You Have a Blended Family

Published on: September 22, 2021 | by Ettinger Law Firm

Family wealth has led to disputes over the years. Today, Hollywood also continues to make films like Knives Out that address what happens when families cannot agree on how an estate should be divided. Given that the Covi-19 pandemic has placed an increased amount of financial pressure on families, a growing number of people are disputing the terms of wills and other estate plans. Additionally, the number of blended families has grown substantially. Data reveals that currently, 16% of children live in “blended families”. Blended families mean that personal finances are much more nuanced than they once were.

Selecting who will inherit your assets and how much they will receive can be difficult even among the simplest family arrangements. When step-children or other aspects of blended families are involved, the chances for disputes rise greatly.

Writing a Will that Decreases the Risk of Estate Planning Disputes

Medicaid Issues Statement on Third-Party Liability

Published on: September 21, 2021 | by Ettinger Law Firm

The Center for Medicaid Services recently issued a notable statement requesting that parties conform with the duties and obligation of third-parties found in existing law. The Center recently reviewed each state’s Medicaid plan to make sure that states complied with recent statute changes. The Center for Medicaid decided that many states are yet to revise their guidelines to meet regulations found in the Bipartisan Budget Act as well as the Medicaid Services Investment and Accountability Act. Regulations found in the Bipartisan Act include statements that impact regulations connected to the treatment of some kinds of care.

The Background of These Changes

Medicaid often disperses funds only as a “last resort”, which means that Medicaid issues payment for treatment and services only when it is assessed that no other payment sources exist. The Social Security Act’s Section 1902 requires all 50 states to take measures deemed reasonable when deciding on third-party payer liability. The Act also specifies what the term “third-party payer” means. The definition of “third-party payer” encompasses various entities including health insurers, qualified health plans, and any other entity that are classified as legally responsible for certain medical treatment. The Bipartisan Act revised section 1902 to require all 50 states to utilize standard cost avoidance methods rather than paying the total amount allowed under the appropriate payment schedule then seeking third-party reimbursement.