New York Estate Planning & Elder Law Blog

Anticipating Estate Planning Changes Under the Biden Administration

Published on: September 19, 2021 | by Ettinger Law Firm

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.

Ways to Reduce the Risks of Probate Litigation

Published on: September 17, 2021 | by Ettinger Law Firm

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.

Making the Most of Life Insurance In Your Estate Plan

Published on: September 15, 2021 | by Ettinger Law Firm

For many years, life insurance played a critical role in estate planning to either pay off or avoid estate taxes. Due to the raising of exemptions to a sizable degree including both on a federal and New York state level, people now utilize life insurance to achieve various goals. This article reviews some of the ways that you can achieve estate planning goals through the use of life insurance.

Income Taxes

Following the recent passage of the Secure Act, some new techniques have been introduced involving income taxes. The Act requires beneficiaries who inherit IRAs to make withdrawals from these accounts over the following decade. The creation of this 10-year duration lowered what was once expected to be the rest of the withdrawer’s life.

Important SSI Changes that You Should Know

Published on: September 14, 2021 | by Ettinger Law Firm

The Social Security Administration recently revised its rules addressing how pandemic-related financial assistance can end up impacting a person’s eligibility for Supplemental Security Income or monthly Social Security Income benefits. The Social Security Administration once counted various types of assistance as income and resources for social security income purposes, which led to individuals having their social security income benefits reduced or suspended. Sometimes, social security benefits were outright denied.

A Change to What the Agency Counts as Assistance

Due to the covid-19 pandemic, the Social Security Administration has decided to not count many types of pandemic-related assistance against either Supplemental Security Income eligibility or benefit amounts. Some types of assistance that are now excluded include economic impact payments, state stimulus payments, unemployment assistance, paycheck protection, and loans or grants to employers and self-employed workers.

Study Shows Covid-19 Impacts More than Nursing Homes When It Comes to Seniors

Published on: September 11, 2021 | by Ettinger Law Firm

As the covid-19 pandemic continues throughout the country, many experts are gaining a better understanding that the pandemic left on older individuals, who are the demographic hit most devastatingly by Covid-19. New studies have provided some helpful insights. For example, data shows that older individuals residing in their own residences have faced an increased risk of passing away from covid-19, more than was previously understood. While nursing home fatalities received significant attention, a much larger number of adults passed away from covid while living outside of nursing homes.

This new research tackles some important questions including what conditions place seniors at an elevated risk of passing away due to the coronavirus, the number of older individuals who might have died without the pandemic, and the number of “excess” deaths that are connected to the covid-19 pandemic. It’s already understood that older individuals were disproportionately impacted. New details about the vulnerabilities of the elderly, however, are illuminating while the number of covid cases increases again and unvaccinated people are still at an increased risk of covid-19.

Details about the Study

Answers to Some Common Nursing Home Problems

Published on: September 7, 2021 | by Ettinger Law Firm

Deciding how to best care for elderly parents is never easy, particularly when they face difficulties in performing daily living activities for themselves. In an effort to resolve your responsibilities as well as meet your parents’ needs, you can unexpectedly end up facing various challenges, particularly if your loved one resides in a nursing home. Data currently suggests that only 4.5 percent of older adults or 1.5 million people live in nursing homes.

At the end of the day, you likely desire for your parents to reside in a facility which may very well be a nursing home where they will be able to thrive as well make the most of their remaining time. With these issues in mind, it’s a good idea to review and plan around all aspects of nursing home life.

Adapting to a Schedule

What You Can Do Now to Protect Your Loved One from Elder Abuse

Published on: August 27, 2021 | by Ettinger Law Firm

A study conducted by researchers at Cornell and the University of Toronto recently found that over 1 in 10 older adults in the state of New York is at risk of becoming the victims of elder abuse over the next decades. Poor health has been determined to be a major risk factor in abuse. Black elderly individuals are also reported to be at a greater risk of financial abuse.

The study, Estimated Incidence and Factors Associated with Risk of Elder Mistreatment in New York State, tracked abuse over time among hundreds of older adults who had not previously been abused. The study subsequently determined that elder abuse is widespread. The research followed elderly adults over a 10 year period.

While the study only examined New York state, the researchers who performed the study have commented that the results are likely to be indicative of the conditions that exist in the rest of the country.

Estate Plans Are for Everyone (Not Just the Extremely Wealthy)

Published on: August 26, 2021 | by Ettinger Law Firm

A variety of myths linger about estate planning. One of the most enduring of these myths is that estate planning is only for the wealthy. In reality, however, estate plans perform countless functions and all adults need them. Estate planning is not simply something that a person needs when they pass away to manage their property. Estate planning does this important task but also performs other valuable functions like planning for your potential incapacity. As people age, the chances that they will need help from someone else later on in life rise substantially. Furthermore, mishaps and tragic illnesses can also occur despite a person’s age. This article reviews some critical reasons why most people, regardless of age, need some type of estate plan.

Healthcare Decisions

All adults can benefit from creating a healthcare directive that addresses who will make healthcare decisions for the individual if they are incapacitated or otherwise not able to do so. A healthcare directive establishes a person’s choices regarding, and other issues like pain medication, organ donation, and other issues that must be decided if a person is incapacitated and cannot care for himself or herself. The person who is appointed as a healthcare agent will also be tasked with making difficult end-of-life decisions involving cremation and burial.

Estate Planning Issues to Address New Texas Proposals

Published on: August 11, 2021 | by Ettinger Law Firm

In May 2021, the Biden Administration announced its “Green Books” which includes a summary of the administration’s tax proposal. Even though this is just a proposal and not actual legislation, it’s critical to understand that the administration is focused on taxing high net worth individuals at a higher rate than the previous administration.

Most notably, this proposal does not include an increase in the estate tax or federal gift rates. Several other important proposals, however, would greatly alter the fundamental aspects of estate planning strategies by substantially reworking capital gain taxation regulations. It remains uncertain, however, whether the proposals in this “green book” will end up being passed into legislation. The proposed date at which these measures will become effective is January 1, 2022, though. To better prepare you for what lies ahead, this article reviews some important details to understand about the proposed changes.

Treat Gifts of Appreciated Property as Realization Events

Ways You Can Utilize Life Insurance In Your Estate Plan

Published on: August 9, 2021 | by Ettinger Law Firm

If you’re planning on making the most of estate planning, you should focus on what your goals are as well as how you can best achieve them. Life insurance plays a critical role in the estate plans of many people. To make the most of life insurance, however, it’s a good idea to first articulate your goals then consider how life insurance could help you achieve these goals. This article can review some of the most helpful ways that you might decide to use life insurance as part of your estate plan.

Replacing Income

Many people obtain life insurance as a way to replace income and make sure that loved ones still have funds as well as the ability to remain at home. If you’re in your peak earning years, which run from 35 to 55, income replacement is particularly critical to consider. While the risk of death might be low for a person at this age, death has the greatest potential to impact the lives of those around you. There will be a substantial amount of your challenges for your loved one to face if something happens to you.