albany estate planning

Tips for Planning End-of-Life Care

Published on: July 2, 2017 | by Ettinger Law Firm

Nobody likes thinking about serious illness, especially a serious illness that could lead to death. Unfortunately, such illnesses can cause massive financial difficulties for friends and loved ones which can in turn significantly deplete the assets you had been planning to leave to your heirs. The moral of the story is that, no matter your age, it is never too early to start planning for the potential need for end-of-life care. The following tips are adapted from a recent article on this topic found in USA Today, and they may provide you with some important concepts to consider when thinking about healthcare issues.

Be Explicit About Your Wishes

Telling people in passing how you hope to be cared for in case of serious illness is important, but it isn’t necessarily always enough. It is important to write down your wishes and be explicit about how you wish your health care to be handled. You should also work with your estate planning attorney to create documents such as health care proxy nominations and/or a living will that express your healthcare wishes in detail.

Estate Planning When You Do Not Have Children

Published on: June 30, 2017 | by Ettinger Law Firm

While comprehensive estate planning can certainly be a difficult process, there are some things that remain rather constant. Most parents will choose to leave the bulk of their estate to their surviving spouse and/or their children, with the surviving spouse typically leaving the remainder of the estate to children. However, it is not uncommon for individuals thinking about retirement and other aspects of estate planning to not have children and/or not be married. When those situations arise, many of those individuals find it challenging to determine how they would like to distribute their estate and to decide whom they should nominate to make important decisions. An experienced estate planning attorney can help you understand the myriad options available to you, and a recent article from CNBC can help you start exploring your options.

Shaping Your Will

According to the article, a 2016 survey indicated that 64 percent of Americans do not have a Will in place. While the survey did not focus on childless adults, it is safe to say that many of those individuals do not have a Will in place, either. When you die without leaving a Will, your state has a statute that determines to whom your estate will be distributed.

Choosing the Right Beneficiaries

Published on: June 28, 2017 | by Ettinger Law Firm

Typically, many people tend to think an estate plan only includes your Will. In today’s day and age, however, most people have a much more diversified estate plan than they realize. Your estate plan is far more than just your Will and includes things like trusts, investments, retirement accounts, and insurance policies. One of the challenges of comprehensive estate planning can be understanding how these assets work and to whom they should go to. Recently, Forbes explored the way several assets within a typical estate plan usually work and understanding this could be an important part of your estate planning decisions.

Wills and Trusts

Those selected to benefit from assets distributed through a Will may have to wait a little longer than if you were to use a trust or other vehicle to distribute such assets. Wills are required to go through the probate process to prove that they are valid and to make sure they comply with the law. Typically, assets within a Will cannot be touched until the probate process is complete. While the probate process in New York is easier than elsewhere, it can still be time-consuming especially for an individual that may need immediate access to the assets in your Will.

Empowering Your Power of Attorney

Published on: June 24, 2017 | by Ettinger Law Firm

Most individuals recognize the importance of comprehensive estate planning, although they may still choose to avoid it. One important part of your estate plan is your power of attorney (“POA”). Basically, a POA is a document that nominates an individual to make legal decisions for you in the event that you are unable to do so for yourself. You can choose the extent of the decision-making power you vest in the individual you have chosen by working together with an experienced estate planning attorney to determine how to best represent your goals. However, it is important to be aware of some of the pitfalls that could weaken your POA. According to a recent article from Forbes, the following tips may help you do just that.

Use an Experienced Estate Planning Attorney

Too many people decide to cut corners by using any number of online forms and legal information available for download. However, these forms are not tailored to a client’s individual needs, nor do they help you understand important aspects about making sure your POA and other estate planning documents meet the needs you have expressed. Designing your POA and other estate planning documents with an experienced estate planning attorney can help you make sure that your estate plan complies with the law. This can save you and your loved ones time, money, and stress down the line. With something as important as estate planning, you want to be sure that you

IRA Trusts as a Protective Measure

Published on: June 22, 2017 | by Ettinger Law Firm

Once an individual decides to engage in comprehensive estate planning, several concerns may arise. One of those concerns often involves leaving a large sum of money to an heir that may be facing financial difficulty or may not yet have the ability to budget in a responsible manner. In such cases, individuals likely still want to make sure that the heir in question is financially provided for, but may have serious concerns over whether or not the heir is able to utilize an inheritance in a reasonable manner. In such cases, CNBC notes that increasingly popular IRA trusts might be the solution to helping you make sure that an heir’s inheritance accomplishes the goal you want it to meet.

Basics of an IRA Trust

An IRA, or individual retirement account, typically comes in one of two forms: a traditional IRA or a Roth IRA. There are different tax structures in place for both types of accounts, but regardless of the type you choose these retirement accounts can often grow to include sizeable amounts of money over time. As these accounts grow, it is increasingly important for you to ensure that your comprehensive estate planning strategy makes the best use of them.

Non-Spouse IRA Inheritance

Published on: June 20, 2017 | by Ettinger Law Firm

We have written several aspects about the role IRAs can play in your comprehensive estate planning strategy, as well as several concerns that accompany them. Here, we will address the two common choices facing non-spousal individuals listed as heirs for an IRA account that is not slated to go to a trust for that individual heir. These two choices are to take a lump sum withdrawal or to keep the account invested. Each of these may have different consequences for an individual heir that are important for everyone to keep in mind.

Lump Sum Withdrawal

Non-spousal IRA heirs have the option to elect to make a lump sum withdrawal of the assets within the IRA. Choosing this option could be beneficial on several levels, such as enabling the heir to make use of a large sum of money for important large purchases like a house or renovations. It could also enable them to pay off otherwise crippling debts. However, inheriting a large sum of money all at once can carry complications, some of which are determined by the amount within the IRA as well as the type of IRA.

Protecting Your Assets from Creditors

Published on: April 4, 2017 | by Ettinger Law Firm

For most people going through estate planning, the goal is to pass on as many assets and as much wealth as possible. Most people don’t engage in estate planning with the goal of paying the most taxes possible or distributing assets to creditors. In fact, creditors can take a bigger chunk out of your assets than taxes can, so if you want to avoid costly claims during your lifetime and upon death that could significantly impact your estate it is important to take proactive steps to protect your assets from creditors as part of a comprehensive estate planning strategy.

In fact, there are several strategies that could help you save on taxes while keeping your assets secure from creditors, though it is important to make sure that whichever actions you choose comply with the Uniform Voidable Transactions Act that covers the transfer of assets in an attempt to defraud existing creditors. Some options for protecting your assets from creditors that comply with the provisions of this act might include:

Gifting

Donating Real Estate to Charity

Published on: March 27, 2017 | by Ettinger Law Firm

When people begin the process of estate planning or take time to review their existing estate plan, they have many tax considerations to think about. How they distribute their assets will determine what taxes, if any, will apply to their estate. They may consider creating a trust for their children, they might want to “gift” some of their assets to take advantage of evolving tax law, and/or they may choose to donate some of their assets to charity. If you are considering donating real estate to charity as part of your estate plan, it is important to be aware of the possible tax consequences doing so might have.

Charities vs. Foundations

Both public charities and private foundations can be nonprofit organizations if they have applied for and been granted 501(c)(3) status, which means that contributions to such organizations can qualify for tax deductions. However, when real estate is involved, the tax deduction for a donation can vary depending on what type of organization it is.

Life Estates and the Generation-Skipping Transfer Tax

Published on: February 2, 2017 | by Ettinger Law Firm

When you make the decision to see an experienced estate planning attorney to make a comprehensive estate plan to safeguard your assets and provide for your heirs, it can be a confusing process filled with a lot of legal terminology that might be new for most people. One of the biggest considerations in estate planning, and often one of the most confusing parts of it, is the effect taxes will have on an estate. To help you make the most informed decisions about what route you choose in planning your estate, it is important to have a full understanding of the different types of taxes that may come into play. One of those is known as the generation-skipping transfer tax, and the following information may be helpful in understanding it.

Life Estates

To fully understand the generation-skipping transfer tax, you first need to understand what a life estate is. A life estate is a type of estate in which ownership of real property – basically, a home and the land which accompanies it – is passed to another person and ends upon that person’s death. At that time, it may revert back to the original owner or it could pass along to someone else depending on the conditions you choose to set. In New York, life estates can be an easy way to ensure real property passes smoothly upon death without the need for probate. Life estates are also exempt from the federal estate tax. Usually, creating a life estate is a simple process, as is the transfer of property upon an owner’s death.

Company Claims to Sell Social Security Numbers

Published on: December 21, 2016 | by Ettinger Law Firm

Maintaining your Social Security number is something we have all been told to keep close, and to be wary of releasing to companies unless absolutely needed. Your Social Security number are a series of numbers that help identify individuals in the United States as either citizens, permanent residents, or temporary workers, for tax reporting purposes. If closely held, this series of numbers provides an easy way for you to identify yourself for various reasons including obtaining bills, loans, applying for jobs, and when attempting to contact any government agency.

While the internet has provided us with a vast amount of knowledge, it has also provided hackers with a way of obtaining our personal data once entered into a database, for credit card processing, or many of the other reasons we use personal information. A website is recently under scrutiny when they began selling Social Security Numbers for $250 dollars each. The website guarantees that as long as the seeker of the Social Security Number has the correct name, last known address, and date of birth of the person they are looking for, they will provide the correct Social Security Number.

The way in which Peopleinfofind.com, the website behind this scheme is able to claim what they are doing is legal is by stating they they provide this information in order to help debt collectors or those who have forgotten their Social recover it or locate an individual. However, the Better Business Bureau has caught on and is now investigating their website. While it is legal for employers to verify an employee’s Social Security Number with the Social Security Administration, attempting to find someone’s Social Security Number through a reverse lookup should be seriously questioned.