New York Estate Planning & Elder Law Blog

Do you have the holiday blues?

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

By now, many homes across the nation are decked out with holiday decorations. String lights are strung around trees, houses, and even apartment windows. Almost all retail shops contain some form of holiday decorations, from simple Christmas trees to menorahs, to elaborate Christmas towns.

While for many people the end of year holiday festivities is the most wonderful time of the year, for others it brings back unpleasant memories of holidays past. Instead of sparking joy feelings of sadness, isolation, and anxiety follow. Holiday lights in particular have been shown to conjure up unhappy memories.

Multiple studies demonstrate that holiday lights and decorations help people recall memories of earlier holidays, especially during early childhood years. If your memories are pleasant, feelings of joy, excitement, and fun to follow. If your memories are unpleasant, and even traumatic, feelings of sadness, isolation, and hurt follow. You may not be over your particular unpleasant memory. Especially if around the holidays you experienced a death in the family, went through a particularly bad breakup, or had a difficult childhood, holiday lights and decorations can be a harbinger of holiday blues.

Advice on Passing on Ownership in Family Businesses

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

When a family business owner has the goal of passing on ownership in the business to the following generation, it is important to include details about business succession in your estate plan. The most challenging issue presented in many family business plans relates to identifying who will control the business. This article reviews some of the important pieces of advice that you should remember to follow if you are engaged in estate planning.

Planning in Uncertain Times

One of the most difficult aspects of business succession planning today involves the uncertainties of federal estate tax law. Under existing federal estate law, every citizen of the United States in 2019 can give during their lifetime or at death a maximum of $11,400,000. This amount is often referred to as the “basic exclusion amount”. Without Congressional intervention, the Exclusion Amount is set to be lowered on January 1, 2026. Given that federal estate tax law is as advantageous it has ever been and that this policy will not last forever, many business owners have decided to take advantage of these laws while they can.

Deciding which IRA Works Best for You

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

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.

Deciding What Role Your Home Plays in Estate Planning

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

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

Utilizing Reverse Mortgage in Estate Planning

Published on: January 11, 2020 | by Ettinger Law Firm

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.

Why you lose when you claim Social Security benefits early

Published on: January 9, 2020 | by Ettinger Law Firm

It is very tempting to turn 62 and claim Social Security benefits. Generating instant guaranteed income for the rest of your life is a seductive proposition. However, if you have very little saved or worse, no retirement savings, claiming Social Security benefits early can be devastating.

There are instances where it can be beneficial for seniors to accept a permanent reduction to their monthly payout in order to begin receiving their benefits early. The permanent reduction is a penalty of sorts, for early claims. For example, someone in poor health, who’s unlikely to live into their 80s, would probably collect more in lifetime income by taking their benefits earlier than by waiting an extra four to eight years to begin taking their Social Security benefits. The reverse is also true. Someone in excellent health with longevity on their side will do better by claiming benefits after Social Security’s retirement age, increasing the lifetime take home benefit from the Social Security program exponentially.

The worst position to be in, however, is to enter retirement, claim Social Security benefits at 62, with little to no savings. For most seniors, their Social Security benefit is the major or sole source of income heading into retirement. When you claim Social Security early, your monthly payout will be reduced, as high as 30%, depending on your birth year.

Estate Planning Strategies to Utilize Before the End of the Year

Published on: January 8, 2020 | by Ettinger Law Firm

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,

Options if You Disagree with Estate Distribution: Lessons from In Re: Estate of Krasinski

Published on: January 6, 2020 | by Ettinger Law Firm

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.

How We Sleep

Published on: January 6, 2020 | by Ettinger Law Firm

“There is a time for many words, and there is also a time for sleep.” — Homer

Sleep, like food and water, is essential for humans to survive. Sleep affects almost every type of tissue and system in the human body. The brain, heart and lungs perform functions while you sleep. Similarly, your metabolism and immune system perform functions while you are sleeping. Sleep also affects your mood and ability to resist and fight diseases. Research shows that a chronic lack of sleep, or getting poor quality sleep, increases the risk of cardiovascular disease, diabetes, depression, and obesity. The next day you feel exhausted, tired, or fatigued after a poor night’s rest.

What is sleep?

Estate Planning Documents All College Students Need

Published on: January 3, 2020 | by Ettinger Law Firm

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.