manhattan elder law

Creating a Succession Plan for Your Business

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

If you are in sole proprietorship of your business, you have a number of options to hand over your company when it comes time to retirement or pass away unexpectedly. If you do not have partners in your business, you are generally within your right to hand over the entire company to any person you may see fit to do and avoid estate taxes up to a point if you plan ahead of time.

One option to hand over a business to another and avoid some state and federal gift taxes is to gradually gift over percentages to the benefactor overtime before you pass away. If you do die before the entire transfer is complete, the heir may be on the hook for exorbitant estate/gift taxes. Currently, the estate tax exemption is $5.49 million over the life of one individual and up to $11.98 million for couples.

If you do have partners and you would like to retire or sell you your stake in the company, you may consider writing a buy-sell agreement into the language of your partnership agreement. These buy-sell agreements may be mandatory with the full understanding you intend to sell of your stake in the company to another or they may allow only the right of first refusal for the partner to buy the stake or pass and allow an other interested party to buy in.

Settling Trust Debts Before Distributing Assets

Published on: July 14, 2017 | by Ettinger Law Firm

Creating a living trust is an excellent way to avoid having assets pass through probate courts and create showdowns for potentially messy challenges brought by individuals claiming to be “interested parties” to the estate. However, even living trusts must still settle up on certain types of debts incurred against the estate by the deceased. If you or a close friend or family member are named as a trustee, you should take some time to understand the estate laws governing these and other estate concerns.

First, it is important to know that not all debts expire upon the passing of the trust’s creator. For example, federal student loans are discharged upon the debtor’s passing but private student loans may not be vacated. Furthermore, debts held by two or more persons may not be discharged and the surviving debtor may carry the remainder of the responsibility.

Second, unlike estates handled by a last will and testament, public notices to creditors are not posted in the media. Again, this is because the estate does not pass through probate court. Instead, the trustee will need to contact known creditors and inform these entities of the trust maker’s passing. By informing known creditors right away, these entities only have a limited time to recover debts from the estate and the debt may be discharged should these creditors fail to act in a timely manner.

What you Need to Know About New York Estate Taxes

Published on: July 11, 2017 | by Ettinger Law Firm

While many believe estate taxes only hamper the financial activity of very wealthy people, the truth is even middle class individuals can be subject to the burdens of state and federal estate taxes. For example, if you spent your whole life building a small business, the value of that asset can exceed the estate tax threshold easily by virtue of the real estate’s value alone.

For many years, New York’s estate tax lagged behind the federal threshold. Currently, the federal estate tax threshold is $5.49 million while New York’s state exemption is $5.25 million. New York’s inheritance tax exemption will continue to climb until 2019, at which point the amount will match whatever the federal threshold becomes. The change came about thanks to legislation signed by Gov. Andrew Cuomo in March 2014.

One key difference between New York and federal tax laws relates to what is commonly called the “tax cliff.” Under federal and many other state taxation laws, only the amount of the estate exceeding the tax threshold would be subject to tax. For example, if an individual left behind an estate worth $6 million, only the $501,000 exceeding the threshold would be subject to federal income tax.

What Benefits Can Elders Qualify for in New York?

Published on: July 7, 2017 | by Ettinger Law Firm

For New Yorkers over 60-years old, state and federal programs provide numerous benefits and community services to help cope with some of the hardships associated with aging. Every county in New York, with the exception of New York City, has a an Office for Aging aimed at helping seniors get vital information on these and other programs. Some of these programs, like Social Security and Medicare, are already well known to most people but others involving tax credits and rent subsidies may be less known and therefore less likely to be applied for.

Elders applying for various benefits should know each program has its own requirements and qualifications applicants will need to refer too. Furthermore, some federal programs may require seniors to “spend down” some of their assets to meet wealth qualifications. Because some federal programs have “look back” periods that can end up imposing penalties on the applicant, seniors are strongly encouraged to consult with an experienced elder law attorney about their situation.

Social Security

What are My Options for Passing on My Home to My Children?

Published on: July 5, 2017 | by Ettinger Law Firm

As we age, we begin to think more and more about what we can pass on to the next generation and their families. One of the best ways to pass on wealth is to transfer ownership of a home or other real estate. Under the law, individuals utilize one of many different way to accomplish this goal, each with its own set of benefits and drawbacks.

In order to avoid placing your loved ones in an unwanted tax situation, carefully examine your situation and tailor a plan that is right for you and your family. With a little time and effort, you can ensure the transfer of your home and other assets goes as smoothly as possible.

Naming your family as beneficiaries in your will

June is Elder Abuse Awareness Month

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

According to the Council on Elder Abuse, as few as one in 24-cases of elder abuse go reported to the proper authorities, an unfortunate reality that many across the state and country are actively trying to change. To fulfil the goal of eliminating elder abuse, June is Elder Abuse Awareness Month to help bring to light many of the issues facing our beloved elders enjoying their golden years with family and friends.

Unfortunately, elder abuse can take place in many different settings including at home by a caretaker or family member, a hospital or rehabilitation setting, or a nursing home by malicious or neglectful staff. According to mental and emotional health website HelpGuide.org, as many as half a million cases of senior abuse are reported every year, a number that pales in comparison to the estimated numbers of unreported cases.

Often times, elder abuse and neglect manifests itself in deep emotional suffering like depression or becoming withdrawn, making it difficult to report and stop elder abuse from the onset. No matter how secure you believe your elder loved one may be, you should always remain vigilant for the signs and symptoms of abuse or neglect. Armed with knowledge, you can be the advocate your loved one needs should he or she become a victim of abuse or neglect.

Elder Law Estate Planning in New York – What is Intestate Succession?

Published on: June 23, 2017 | by Ettinger Law Firm

When someone passes away without creating a last will and testament or trust, the individual passes away in intestate, meaning his or her assets will be distributed to heirs based on a line of succession under New York state probate laws. While most of us plan for the time after we pass away, not everyone goes through the process of creating a will or trust and this can create some complex legal issues when the estate passes through probate.

Unless a trust is created, every estate must pass through probate court in New York, even if the deceased created a clear and concise will. However, there are a few types of assets that will not need to pass through intestate sucession if the decedent pases away without a will. These include:

Life insurance payouts

What are the Tax Rules of Gifts to Grandchildren?

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

All grandparents want the best for their children and grandchildren and many take the initiative to set aside part of an estate to help future generations get a head start in life. Forward thinking grandparents should also be aware there are certain tax and entitlement benefits rules seniors need to follow to remain in compliance with the law in order to avoid jeopardizing many of their own assets.

First, grandparents need to know the Internal Revenue System (IRS) places a $14,000 limit on untaxable gifts each year to individual grandchildren. Married couples may each give up to $14,000 to each and every grandchildren without any taxes, making the total $28,000 per year. Grandchildren receiving these gifts will not have to pay any income tax of these gifts, unless the assets generate income.

Additionally, grandparents can make direct payments to doctors and educational institutions to cover services on behalf of their grandchildren. The IRS does not consider payments for medical treatment and education as gifts subject to tax and grandparents can still give up to $14,000 each per year to their grandchildren without worrying about gift taxes.

Elder Law Estate Planning – Choosing the Right Trust for your Estate

Published on: June 16, 2017 | by Ettinger Law Firm

When deciding how to disburse assets in an estate, many individuals decide to create a trust over a last will and testament in order avoid probate court and create a public record of the events. The pros and cons of establishing a trust over a will depend on many circumstances, including what type of trust the grantor chooses to create and what types of assets fall into that particular trust.

Living trusts

One category of trusts is the inter vivos trust, created while the individual is still alive. Two main types of inter vivos trusts exist, revocable and irrevocable trusts. Revocable trusts allow the grantor modify, amend, or otherwise change any aspect of the trust as he or she sees fit.

Erie County Department of Senior Services announces Elder Law Day 2017

Published on: June 12, 2017 | by Ettinger Law Firm

The Erie County Department of Senior Services recently announced the date for its 17th annual Elder Law Day event. The program will take place from 2pm to 8pm on Thursday, June 22, at the Adam’s Mark Hotel, 120 Church St., Buffalo, New York. The event helps educates seniors and the greater public about many health, safety, and legal issues many of our beloved elders face in these modern times.

The free event will touch on such topics as Medicare, Medicare Supplemental and Managed Care plans, HMO’s, PPO’s, Part D coverage and long term care insurance to help seniors and their families make informed decisions about elder health care needs. Event Goers can also sit down with sponsors to discuss topics like Medicaid planning, estates, trusts, wills, housing, consumer, health insurance and much more.

“Elder Law Day is full of valuable information and is a great opportunity for seniors and caregivers to learn about their rights, get answers to their questions, and build a plan for the future. These events have been tremendously popular in the past and have proven to be a good way to get information into the hands of people who need it,” said Tim Hogues, Erie County Commissioner of Senior Services. “Elder Law Day brings together professionals from all around the aging spectrum to share their knowledge and actually help seniors right on the spot. I encourage seniors, caregivers, and anyone who needs the latest information on any aspect of senior life to attend.”