New York Estate Planning & Elder Law Blog

Deciding which type of IRA works best for your estate plan can be challenging. While Roth and traditional IRAs are the most common types of retirement accounts, there are other options that you should consider as well. These lesser-known accounts can provide numerous tax advantages based on a person’s situation. This article reviews the six most common types so that you can begin considering which retirement account works best for you.

# 1 – Traditional IRAs

The most popular type of retirement savings account, there are several reasons why traditional IRAs are so common. Contributions are deductible from a person’s current income and consequently lower the individual’s taxable income for a year. Withdrawals from the account are then taxed at the tax rate at that time. 

One of the major elements of most estate plans is deciding how to handle your home. For many families, a home is among its most valuable assets. While everyone can benefit from an estate plan, it is particularly that homeowners create a plan. 

To make matters more complex, there are many estate planning strategies to choose from when it comes to deciding what to do with your home. This article reviews some of the various strategies used to pass on ownership of a home.

# 1 – Probate

Most of us have either seen a commercial or heard someone mention reverse mortgage. While some people have been left with the notion that this is a way that elderly individuals “lose” their homes, other people have heard that reverse mortgages can play a valuable role in estate planning. Even though reverse mortgages are difficult to understand, this article briefly examines the role of these mortgages.

How Reverse Mortgages Work

On its simplest terms, reverse mortgages involve taking a loan out against the equity in a person’s home. Proceeds from the loan can be received either monthly in a lump sum. A person is then charged interest on what they owe. An individual must be 62 years old to qualify for a reverse mortgage and must reside in their home. Even though a person receives payment from a reverse mortgage, the individual must continue to pay real estate taxes, insurance, and homeowner association dues. The lending institution will then collect on the debt when the borrower dies or moves out of their residence.

With the end of the year quickly approaching, it is a good time to make some important estate planning decisions before 2020 rolls around. This article reviews some of the often overlooked but particularly powerful estate planning strategies that you might consider putting into practice.

Convert Traditional IRAs into Roth IRAs

Several years ago,  converting a traditional IRA to a Roth IRA was not always an available option. Instead, this was limited to the modified adjusted gross income of $100,000 or less. This restriction, however, has since been removed. Consequently,

The Pennsylvania Supreme Court recently issues a noteworthy decision in the case of In Re: Estate of Krasinski. The case involved the estate of Sophia Krasinski, who passed away in 2006. The primary assets of Krasinski’s estate were three real estate parcels. One of Krasinski’s four children was appointed to act as an executor under the terms of Sophia’s will, which requested that the four children equally split the estate. In 2010, the Executor filed a petition to permit the sale of real estate to heirs, which was subsequently granted by orphans’ court. One of the beneficiaries subsequently sued the estate based on the alleged existence of an oral contract with Sophia Krasinski regarding her estate. Following a nonjury trial, the trial court held that there was no enforceable oral contract and dismissed the case. The beneficiary failed to appeal and a sale occurred. 

The Pennsylvania Supreme Court was subsequently presented with the opportunity to determine the proper scope of Rule 342(a)(6) of the Pennsylvania Rules of Appellate Procedure, which provides for an appeal as of right from an order that determines an interest in real or personal property. The Pennsylvania Supreme Court, in turn, determined that the beneficiary waived all objections to the court’s order and approved the private sale. 

Each year, many estates are divided in a way with which beneficiaries disagree. If you find yourself in this unfortunate situation, one of the most common questions faced is what options you have to remedy the situation. 

If you are a parent with a college-age child, you likely have many concerns. One often overlooked thing is estate planning. Even though some people think estate planning documents are only necessary for the elderly or wealthy individuals, in reality, these documents are helpful for people who are no longer able to care for themselves. While young adults are often focused on making the most out of their lives, it is an unfortunate truth that each year numerous young people end up incapacitated or killed as a result of emergencies. The best way to avoid undesirable consequences in these situations is to make sure that you have adequate estate planning tools in place. This article reviews just some of the critical estate planning documents that college-age students should consider creating. 

Why Healthcare Planning is Important for College Students

Many college students are at least 18 years old, which means that they are viewed in the eyes of the law as adults who are capable of making their own healthcare decisions. As a result of the Privacy Rule of the Health Insurance Portability and Accountability Act (HIPAA), parents are at risk of being found without any decision-making abilities if something happens to the child and the parent becomes injured. This is because HIPAA applies even with a college student’s parents and even if the student is still listed on the parents’ medical insurance. To avoid being locked out of learning about a child’s health or decision-making abilities in case of an emergency, it is important to be mindful of either HIPAA or estate planning documents like financial powers of attorney.

Many people understand the value of having an estate plan. They also understand that not writing these documents can place their loved ones in a much more difficult situation. For some reason, however, these people hesitate to write an estate plan. For one reason, most people do not like to accept that they too will one day pass away. 

If you die without an estate plan or “intestate”, your estate will be distributed by New York’s probate laws, which follow a predetermined order of how assets should be divided. To encourage you to write your estate plan, this article reviews some important steps that will encourage you to write your estate plan.

# 1 – Realize Who Benefits from Estate Planning

It’s difficult to accept, but accidents occur every day. In addition to preparing for accidents, it is also a good idea to anticipate events like entering a nursing home. Because an event of this nature is almost a certainty, it is a good idea to take some important estate planning tips to prepare for what lies ahead. 

As a result, this article reviews some important strategies that you should remember to implement to make sure that your loved ones have an easier time navigating matters when the unexpected happens.

# 1 – Plan Now, Not Later