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Parents can make medical decisions for their children. After a child reaches the age of 18, however, and is viewed in the eyes of the law as an adult and a parent’s ability to make these decisions ends.
Fortunately, through the use of a few simple estate planning documents, young adults can avoid this situation as well as many others.
# 1 – Financial Power of Attorney
Trust protectors are becoming an increasingly common part of estate plans in New York as well as the rest of the country. A trust protector refers to someone who is appointed to look over a trust and make sure that the trust is not adversely affected by changes in the law.
Appointing a trust protector is not a decision that benefits everyone. As a result, this article reviews some of the biggest advantages that people realize throughout appointing a trust protector.
# 1 – Make Changes to a Trust without Formal Amendments
Many of you may recall when President John F. Kennedy founded the Peace Corps in 1961 and may have even signed up as a volunteer to help provide social and economic development assistance abroad. Borrowing on this model, an initiative is underway to establish an internal national volunteer care corps to help older adults age in place by relying on the assistance of volunteers to help people manage their day-to-day living needs.
Introducing the National Volunteer Care Corps
The National Volunteer Care Corps is a government initiative run by the Administration for Community Living, a division of the U.S. Department of Health and Human Services. The National Volunteer Care Corps seeks to build an army of domestic volunteers to help older people live better and longer in their homes, especially if they can still take care of their primary needs. From teens, to college students, or civic minded adults, volunteers would perform the following tasks:
Many conversations mention estate and inheritance taxes together, but there are some substantial differences between these two things. Both these taxes, however, have one thing in common: not everybody pays them.
As a result, it is a wise idea to begin by deciding whether you will be required to pay either of the taxes.
Is Inheritance Taxable?
A common question asked of us is what happens when a will’s language is inconsistent with the titling of an account held with survivorship benefits? The immediate answer to the question is that the titling of an account will control over a will’s language. The practical effect on the survivor or beneficiary of the account, if there is a discrepancy with the name or a name has been changed, is to challenge the titling of the account in probate proceedings.
When an account is held with survivorship benefits to another account holder, how that account is titled may mean one of two things. Ideally, the named beneficiary, by operation of law, should automatically receive the contents of the account. If the titling is wrong or incorrect, legal intervention will be necessary to correct the account titling. In almost all cases, the account title will supersede any instructions to the contrary in the deceased person’s or maker’s will.
Why do people set up accounts with survivorship rights?
The Supreme Court of Montana recently affirmed a judgment by the district court distributing assets from a trust established by a husband and wife to the couple’s three children.
The district court had interpreted the trust creator’s handwritten codicil as a wish and not a specific bequest of the woman’s stock in a company that the couple had created and grown. Before the husband’s death in 1993, the couple executed identical wills under which the assets of the first spouse to die passed into a trust with the assets in the trust intended to be distributed equally between the three children of the surviving spouse.
As a result of the Supreme Court’s decision that the codicil was lacking in testamentary intent to specifically devise shares, this specific bequest was not passed on.
The Mississippi Court of Appeals recently decided that a man convicted of DUI manslaughter that led to the death of his wife can collect survivor benefits from the state. The late woman had designated her husband as a 40% beneficiary while the deceased woman’s sister was a 60% beneficiary. While Mississippi law permits spouses in the husband’s situation to still receive benefits, some states have prevented this type of result by altering statutory language. The husband previously pleaded and was sentenced to 25 years in prison with 10 years suspended and 15 to serve. The man later received a separate two-year sentence for possession of contraband.
While the Mississippi Court’s decision might seem strange, it emphasizes the importance of understanding the basics about the New York Survivor’s Benefit Program, which will be briefly reviewed in this article.
The Role of the New York Survivor’s Benefits Program
More seniors than ever are carrying high debt into retirement. Managing high debt simultaneously with managing the cost of daily living and medical care on a fixed income is a recurring problem in many households. The amount of debt burden has skyrocketed over the past decade.
The National Council on Aging commissioned the Survey of Consumer Finances to study debt and how it impacts seniors economic security. The key findings are listed below:
Losing a parent is not easy. While being prepared for the event might not make the emotional aspect any easier, it can help to eliminate the potential for additional problems. As a result, this article reviews some of the important financial steps that you can take after a parent passes away.
# 1 – Determine if Your Parents Had an Estate Plan
The position of managing a parent’s estate after their death can be made much easier if a parent had an estate plan. Ideally, a parent will organize all of their estate documents in an easy to find but secured location. The best estate plans include wills that address how assets should be handled, dispositions of last remains regarding how a parent’s remains should be disposed of, and several other documents.
Wills play an important part in the estate planning process. The best estate plans, however, include more than wills. Instead, the best estate plans anticipate the numerous complications that can arise at the end of a person’s life.
Advance Healthcare Directives
Medical powers of attorney and living wills serve an important role that wills simply do not touch. A medical power of attorney can be used to appoint someone to make healthcare decisions in case you become incapacitated. A living will can be used to determine what type of life-prolonging measures you would like if you end up on life support.
New York Estate Planning & Elder Law Blog