New York Estate Planning & Elder Law Blog

Advice on Estate Planning for an LLC Interest

Published on: June 2, 2021 | by Ettinger Law Firm

For many business owners, it’s a critical issue to make sure that business organizations including LLCs are properly structured. While many business owners have created revocable living trusts to articulate how their assets should be managed and to avoid probate, it’s a good idea that LLC interests are not put into the trust. This means that even if everything else with an estate plan is done correctly, a family would still likely need to undergo the probate process to both access and manage LLC interests. This, however, is not the best situation and there are more preferable options.

Placing an LLC interest into a trust is often a simple and affordable option. While it might be possible to simply file paperwork if an LLC involves a single member, it might be necessary to articulate such arrangements in an operating agreement. Many times, there are provisions in operating agreements that allow individuals to make these transfers. If no such provision exists however or there is not an operating agreement, the consent of the other LLC members is often required to perform such a transfer.

The Advantages of Utilizing an LLC for Estate Planning

New Jersey Court Decides Influential Elder Law Case

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

Many legal scholars and others who are impacted by elder law issues are positively responding to a landmark decision in favor of people who care for their parents at home. This decision has the potential to result in a substantial increase in the number of homes that are transferred to caregivers.

The case in question, A.M. v. Monmouth County Board of Social Services, was decided by New Jersey’s Appellate Division and reaffirmed a New Jersey regulation, which permits older adults to transfer their homes to adult caregiver children without facing Medicaid penalties. The regulation permits the transfer of homes without penalty when an adult child provides care to a parent for a period.

An Influential Victory

A Simplified Power of Attorney: Holding the “Short” Form Power of Attorney to its Name

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

The crisis brought by COVID has served as a stress test for many of the laws and regulations effecting our nation’s seniors. The power of attorney, a document that gives one person, the agent, the legal power to act for another, the principal, fills a dire need to put control over their health and resources in trusted hands in the event of incapacity, especially in times of crisis. Patients in nursing home facilities, for example, need quick and durable responses to the crisis. And guarantees that the courts, and third parties such as banks, will respect their decisions.

In 1948, the “Short Form” POA was created to simplify the process for New York citizens. Since then, it’s become anything but. A new law rectifies this.

New Power of Attorney Bill Comes into Effect June 13, 2021

How the Covid-19 Pandemic Has Increased the Risk of Elder Fraud

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

The elderly are at risk of financial abuse, and unfortunately, the Covid-19 pandemic has led to an increase in the rate of financial abuse. Abusers are known to look for individuals who are particularly vulnerable and factors like death, incapacity, health challenges, and diminished capacity can all lead a person to face such a situation. Data, however, shows that the pandemic has increased the risk of these factors. As a result, it’s critical to understand what financial abuse among the elderly can include as well as what you can do to prevent your elderly loved one from being harmed in this way.

Common Types of Financial Abuse

Some of the most common types of financial abuse to which elderly individuals often fall victim include the following:

California Court Decides Sonoma Trust Case

Published on: May 23, 2021 | by Ettinger Law Firm

A Court of Appeals in California recently affirmed a trial court’s award of attorney fees to a trust. This decision came after the trust tried to enforce a conservation easement. The defendants in the case owned land and were accused of intentionally violating an easement. This case raises an important lesson about the role that conservation easements can play concerning trusts.

How the Case Arose

A conservation agreement refers to a voluntary arrangement between a landowner and either a land trust or government agency that limits land use to protect a property’s condition. When an entity violates a conservation agreement, courts are permitted to award injunctive relief as well as financial compensation.

Are Lifetime Gifts Right for You?

Published on: May 20, 2021 | by Ettinger Law Firm

One of the primary purposes of estate planning is to appoint someone to handle your estate after you pass away as well as describe how you would like your remaining assets distributed. Many people decide that the best way to pass on assets is to family members, which often include children and/or grandchildren. While there are many estate planning strategies, you should likely at some point consider whether passing on a lifetime gift makes sense.

The Current Exemption Amounts for Lifetime Gifts

In 2021, each person in the United States can transfer up to $11.7 million either during that person’s life or time of death without being subject to any federal estate or gift taxes. If your transfers exceed this amount, only the excess amount is taxed at 40%. New York currently does not have a gift tax. While this provides an even greater reason to utilize lifetime gift taxes, it’s worth remembering that several of the states surrounding New York have gift taxes. Due to these currently advantageous taxes, many individuals utilize this opportunity to keep wealth within their families. Making gifts to your family while you are still alive offers the advantage of seeing your loved ones enjoy these assets.

Should You Revise Your Estate Plan After Your Children Age?

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

Perhaps at the beginning of your marriage, you met with an estate planning attorney. If children have recently entered your life, however, it’s important to make sure that your estate plan contains various important details. This article reviews just some of the most key considerations that you must have if you plan on updating your child’s estate plan.

# 1 – Address Who Would Function as Guardian

It’s critical to make sure you consider who would take care of your children if they were still young when you and your partner passed away or become incapacitated. If you have not made these arrangements, you are leaving your child in a vulnerable position.

Saving Wakanda: Estate Planning Lessons from Chadwick Boseman

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

One of the most undesirable situations in the field of estate planning is a person becoming incapacitated or passing away without the proper estate plans in place. To die intestate means that a person passes away with no legal will. This means that if a person intestate, the distribution of that person’s assets is determined based on New York law rather than any consideration for the needs of the deceased person’s loved ones.

Tragically, many people die without the proper estate planning tools in place. For example, Black Panther star Chadwick Boseman passed away without a will. Boseman’s case is unique because he filed some estate planning documents, but not enough to fully oversee how his estate was handled. Consequently, the distribution of Boseman’s assets was left to the control of a California probate court to distribute Boseman’s estate which is valued at $939,000. Given the celebrity of Boseman’s film roles, his estate was likely worth much more but passed on many assets to trusts. Curiously, however, wills are often written contemporaneously to wills. Boseman’s story brings to mind why you should ignore some of these common reasons and engage in adequate estate planning sometime soon.

# 1 – To Make Sure Your Children Are Cared For

Important Estate Planning Issues if You’re Moving Abroad

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

The Covid-19 pandemic has caused some people to leave the country. There also many other reasons why people choose to take residence in a foreign place including job opportunities or to live closer to loved ones. If you’re planning on moving out of the country, it’s critical to understand some potential estate planning implications.

Select Someone to Oversee Your US Assets

If you still own any type of assets within the United States, you should consider utilizing a power of attorney to name an “attorney-in-fact”, which is a person who makes financial decisions on your behalf while you reside outside of the country. This person should be close to the assets in a question so they can help oversee them. This person might be granted various powers including the ability to pay bills and to apply for loans.

Advice on Planning for Nursing Home Care Cost

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

Data shows that more than 11 million Americans currently need some type of long-term care due to chronic illnesses and conditions. Statistics also show that over a million Americans reside in long-term care facilities. Over half of these residents are between the ages of 75 to 94. Many times, long-term care refers to care at locations like a home but also assisted living or hospitals. It’s a good idea to sufficiently plan for how you will receive long-term care as well as how to preserve assets you’d like to keep.

# 1 – You Have Options to Pay for Nursing Home Costs

The costs for long-term care options like nursing homes are often substantial. Potential applicants are often overwhelmed at how large these costs are. As a result, it’s often the best idea to begin planning for how to pay nursing home costs as soon as possible. Some of the options that people rely on to pay for long-term costs include: