New York Estate Planning & Elder Law Blog

What Real Estate Inheritance Option Is Best For You?

Published on: May 7, 2020 | by Ettinger Law Firm

At first glance, inheriting real estate might seem like an entirely good thing. In reality, when taxation and other estate planning issues are considered, this inheritance also presents several burdens.

While New York does not have an inheritance tax, other states do and it is critical to consider this as well as other issues when deciding what to do with the other property. In short, your options include moving, selling, or renting a property. What works best for you, however, depends on your situation. As a result, this article reviews some factors you should consider when deciding how to respond.

Factor # 1 – Mortgage

Children and Estate Plans: Equality Is Not Required

Published on: May 5, 2020 | by Ettinger Law Firm

Children and Estate Plans: Equality Is Not Required

If you do not have an estate, at least one person you know has probably recommended that you create one as soon as possible. Among the various questions that the creation of an estate plan presents is how exactly to divide assets. While you likely want to help your loved ones have an easier time in case something happens to you, it can be challenging to determine how to achieve these goals.

While you might have considered passing assets to the children that need it most, you might have quickly dismissed this thought because passing on your assets in an unequal amount might seem unfair. In reality, passing on your assets to your children in equal amounts is not necessary. This article reviews some of the most common situations where unequal distributions might be the best choice to make.

How Much Do You Think You Need for Retirement?

Published on: May 5, 2020 | by Ettinger Law Firm

In 2019, the U.S. Census Bureau, determined that the average national retirement age was between 63 and 64 for men and 62 for women. Most Americans agree that in retirement they’ll need saving to supplement Social Security benefits. Social Security alone will not get them through retirement. The current life expectancy for Americans is 78.93.

Social Security benefits accounts for close to 40% of your pre-retirement income. The average Social Security monthly benefit in 2018 was $1,409.91 a month, or about $16,919 a year. You will need savings to cover the other 60% through a combination of cash, 401k, and other retirement accounts for income. Schwab conducted a survey of its 401k plan participants and found that the participants themselves calculated they’ll need savings of $1.7 million on average to get through retirement.

To figure out how much money you’ll need to support yourself in retirement consider the following:

Growing with Your Estate Plan: How Things Change As You Age

Published on: May 2, 2020 | by Ettinger Law Firm

One of the most difficult parts about successful estate planning is that countless myths persist about how to plan for your future. One of these misconceptions is that young people do not need estate plans. Another common misconception is that once you create an estate plan, there is no need to revise. In reality, the best approach is to create an estate plan early on in life and then to revise or add to that estate plan as time passes. This is because, like or not, emergencies do happen and everyone can benefit from the existence of an estate plan. As a result, this article reviews what a good estate plan should include for some various ages as well as the risks presented to estate plans during each phase of a person’s life.

# 1 – College Age

While you still need one, during this phase of life your estate plan can remain relatively simple and include only critical documents like durable powers of attorney and a will. Each year, countless young people end up in tragic accidents that force their parents or loved ones to make caregiving decisions. Having a power of attorney in place helps to avoid uncertainties about how healthcare or financial decisions for you will be made. Regardless of value, if you have any assets, you should also address how these belongings will be transferred in a will.

About 40 Million Americans to Experience a Drop to their FICO Score

Published on: May 2, 2020 | by Ettinger Law Firm

Millions of Americans are expected to experience a drop in their FICO score when the Fair Isaac Corporation, the company that invented the FICO score, modifies the methodology they use to determine a consumer’s FICO score. Beginning in the summer of 2020, lenders may opt to use the new methodology when assessing the creditworthiness of a consumer when extending credit and setting interest rates on mortgages and consumer loans, such as credit card or automobile loans.

Link between consumer behavior and your FICO score

Consumers with fair credit, growing debt, who take out personal loans to consolidate debt, or who are about to max out their credit cards are expected to see a negative impact to their FICO credit score. The Fair Isaac Corporation updates its scoring model every few years. The last time significant changes were implemented was in 2014, where it was thought that credit restrictions were lessoned. For individuals with little to no credit, utility payment histories, rental payment histories, and the elimination of civil judgments from individual’s credit histories, helped bolster their credit score.

5 Critical Reminders about Inheritance Tax

Published on: April 30, 2020 | by Ettinger Law Firm

The estate tax in the United States is a tax placed on a person’s assets that transferred to beneficiaries after that person’s death. While only a certain category of assets is impacted by these taxes, they can have a profound impact on the administration of your estate plan. As a result, if you plan on engaging in estate planning any time soon, this article reviews some critical factors that you should consider the role of estate and gift taxes in the United States as of 2020.

# 1 – The Lifetime Exemption Amount

Estate taxes in this country impact only the highest-earning households in this country. This is because federal tax laws acknowledge a lifetime exemption, which allows you to exempt certain assets from what constitutes a taxable estate. While the amount of this exemption change yearly, in 2020 the lifetime exemption is $11.58 million for each person. This means that the exemption for married couples is $23.16 million. Any amount that goes over these thresholds is subject to an inheritance tax.

Advances in Reproductive Technology Lead to Estate Planning Obstacles

Published on: April 28, 2020 | by Ettinger Law Firm

Under the Uniform Parentage Act as well as New York law, children born through the aid of advanced reproductive technology are treated the same as biological children.

Children who are born through the use of frozen biological material, however, create many estate planning questions, which include how to write estate planning documents and how to structure trusts.

Know What Federal and New York Law States

Assisted Reproductive Technology and Estate Plans

Published on: April 27, 2020 | by Ettinger Law Firm

In-vitro fertilization, also known as IVF, has its origins in the 1890’s when the first known case of embryo transplantation occurred in rabbits in Great Britain. By 1973, scientists were able to transplant a human embryo into a woman. The first human IVF pregnancy occurred 47 years ago in Melbourne, Australia. In addition to IVF there are other assisted reproductive technologies, commonly called ART for short, that have changed human conception, such as artificial insemination and surrogacy that have made parenthood possible for people who are unable to reproduce naturally.

Significant changes are afoot in the area of estate planning of such families as more children are born from ART methods for reproduction. The Centers for Disease Control and Prevention (CDC) estimates that 1.8% of all infants born in the United States were aided by ART methods. In the context of estate planning, there are two main issues ART families should tackle. First, how parentage and descendants are defined for legal purposes, such as maintenance and inheritance. Second, is who controls the disposition of stored genetic material that has not been used.

Are all children descendants, legally speaking, of course?

4 Reasons Your Loved Ones Wish You Had an Estate Plan

Published on: April 25, 2020 | by Ettinger Law Firm

While we create estate plans to make sure that our wishes are carried out after our death or incapacity, we ultimately establish these plans for our loved ones. There are various reasons, however, why many people hesitate to create any type of estate plan at all. For one, it can be frightening to confront the fact that like everyone else, you too will one day pass away. Uneasiness about this prospect can cause you to end up delaying the creation of an estate plan for years and sometimes even permanently.

One of the best ways to motivate yourself to take the steps necessary to create plans for your future is to understand why your loved ones want you to do so. As a result, this article reviews some of the most common reasons why family members and other loved ones want us to create estate planning documents.

# 1 – Avoid Complications

Why Claiming Social Security Benefits at 62 May be Good for You

Published on: April 24, 2020 | by Ettinger Law Firm

The conventional wisdom is to wait and not claim Social Security benefits until you are over 66 (the full retirement age for individuals born between 1943 and 1954). Full retirement age is calculated by year of birth. To see what your full retirement age is click here, or review the website maintained by the Social Security Administration (www.ssa.gov). The reason choosing when to begin claiming Social Security benefits is a big decision that will impact the size of your monthly benefit amount or checks for the rest of your life. For example, if you have a full retirement age of 67 and wait until age 70 to begin claiming Social Security benefits, you’ll receive your full benefit amount plus an extra 24% each month for the rest of your life.

Delaying benefits however isn’t right for everyone, and it may make sense for you to claim your benefits as early as possible, or age 62, (the earliest retirement age for individuals born between 1943 and 1954). Again, to determine when you can claim your benefits, click here. Three reasons why claiming your retirement benefits through the Social Security program may be right for you are as follows:

Your retirement years are limited.