New York Estate Planning & Elder Law Blog

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.

Trusts and Family-Run Government Contractor Companies

Published on: April 23, 2020 | by Ettinger Law Firm

It’s a common tactic for families to utilize trusts to both own, control, and transfer ownership of family businesses. Among other reasons, these trusts help to achieve goals related to asset protection, tax savings, and estate planning.

If your family-run business is also a government contractor, it is critical that you be aware of the Federal Acquisition Regulation. Not complying with this body of law could result in various complications include allegations of making false statements, losing applicable clearance, and having bids and proposals rejected.

The Role of CAGE Codes

Things to Know If You’re Considering a Handwritten New York Will

Published on: April 21, 2020 | by Ettinger Law Firm

It’s easy to assume that celebrities have the best-written estate plans. In reality, however, each year countless celebrities pass away and create estate problems because they do not clearly express their wishes.

For example, when the “queen of soul music” Aretha Franklin passed away, she left a holographic will behind. While some news sources first reported that Franklin had passed away without any type of estate plan, she was later discovered to have left behind a holographic will. This means that instead of administering Franklin’s estate following state intestacy law, Franklin’s estate was divided under the terms of her handwritten will.

When New York Holographic Wills Are Valid

Estate Planning and Separate Property in New York

Published on: April 18, 2020 | by Ettinger Law Firm

In the recent case of Leland House v. Webb, a husband initiated legal action against his deceased wife’s executor to quiet title of a property parcel. In response, the executor claimed that the transfer of the property was a gift rather than a sale. After the trial court ruled in favor of the executor, the husband appealed.

The appeals court found that an aunt had conveyed the parcel to the wife during the wife’s marriage to the husband.

How property is characterized is often shaped by the time and method through which the parcel was obtained. Among the types of property ownership, there is a presumption in most states that property owned by spouses during a marriage is marital property. If the property is obtained through a gift or inheritance, however, it is often classified as separate rather than community property.

Divorcees, You Could Be Owed Extra Social Security benefits?

Published on: April 18, 2020 | by Ettinger Law Firm

The general consensus is that Social Security replaces around 40% of your pre-retirement income. The reality is that half of all single people depend on their Social Security benefits to replace close to 90% of their pre-retirement income, says the Social Security Administration (SSA). From the start, the only way for you to survive retirement is to cut your living expenses to 40% of your working income.

For married couples, the outlook is better. One spouse, usually the one who may never have worked or earned less than the other spouse, is able to receive Social Security benefits based on the other spouse’s work record. Because that spouse is married, his or her Social Security benefits will be higher than a single person. According to the SSA, only 21% of married couples depend on their checks for at least 90% of their retirement income.

If you are single and divorced, in some circumstances, you too can receive Social Security benefits based on your ex-spouse’s work record, even if your ex has remarried. You may be surprised to learn that there are few eligibility requirements you’ll have to meet in order to claim benefits based on your ex’s work record. To qualify for Social Security benefits based on your ex’s work record:

Distinguishing Between the Types of Guardianship in New York

Published on: April 16, 2020 | by Ettinger Law Firm

While most of us are familiar with wills, many people in New York are not certain about the role played by other estate planning tools like guardianships. In short, a guardian refers to a person who makes decisions for another individual, who is not able to make decisions on their own.

Guardianship is appointed for children, adults faced with development or intellectual disabilities, or incapacitated adults. In the state of New York, there are several types of guardianships, which vary based on the parties who are involved. This article briefly distinguishes the differences between these types of guardianship.

# 1 – Guardian of a Developmentally or Intellectually Disabled Adult

How much can you receive in divorce benefits?

Published on: April 15, 2020 | by Ettinger Law Firm

If you’re eligible for divorce benefits from the Social Security Administration (SSA), you can collect up to 50% of the amount your former spouse is eligible to receive by claiming your benefits at his or her full retirement age (FRA).

Your FRA is either 66, 66 plus a few months, or 67, depending on the year you were born. The earliest you can claim Social Security benefits is 62. If you claim benefits before your FRA, your Social Security benefits will be permanently reduced by as much as 30%. You can only receive your full Social Security benefit amount if you claim benefits at your FRA.

You cannot double dip

Using a Will to Place Assets into a Trust

Published on: April 13, 2020 | by Ettinger Law Firm

Many estate planning strategies can be utilized to achieve your goals. One of the most common techniques that people utilize to achieve tax and asset management goals is placing assets into a trust, but there are many complexities about how trusts operate. Among the various options for funding a trust, you might have heard about having any remaining assets from your will placed into a trust.

The Role of Pour-Over Wills

Establishing a pour-over will requires a person to establish both a will and a trust. Language within the will should then state that all or some of a person’s assets pass into or “pour-over” into the trust once that person passes away. Assets that are placed in the trust are then used to fund distributions to beneficiaries. If all of your assets are passed to the trust, your estate will not be required to pass through probate court.

Are You Still Concerned About Your Child’s Spouse?

Published on: April 12, 2020 | by Ettinger Law Firm

Estate planning around your child’s partner is concerning for many parents. Shielding your assets from your child’s spouse in the event of divorce is possible and can be a part of your estate plan. The reasons for wanting to shield your assets from your child’s spouse are varied and packed with emotions and feelings. Some parents wish to pass their property down within their own bloodline. Other parents themselves are also divorced and worry about how their child’s inheritance may wind-up down the road if there is a divorce or a new family in the picture. And some parents, even after years of their child being married, still do not like their spouse.

It is upsetting to a child when his or her parents disapprove of their spouse. Some families are discreet about their true feeling, while others make it well-known. No matter where you fall in the spectrum of possibilities, there are ways to prepare your estate plan that may take away some of your worries that your child’s inheritance will be squandered away when you die because of his or her relationships while avoiding the emotional time-bomb of revealing your true feelings about your child’s spouse to your child.

The most effective way to shield your assets from your child’s spouse is to have your child and his or her spouse enter a prenuptial agreement before they get married. While this may be the best solution, it is also the most emotionally charged and wrought with difficulties. If you push to hard, legally, it may be a ground to invalidate the prenuptial agreement, because such agreements need to be voluntary to be enforceable. Trusts are an emotion-free method to communicate and exercise your feelings about your child’s choices without articulately them to all who would here.