Although death is a difficult subject to discuss, it’s also a part of your financial planning obligations. You must prepare for the inevitable. Part of planning for the future means having a proper estate plan in place. Doing so minimizes financial difficulties for your family in your absence. 78% of young adults 18-36 and 64% of Generation X—aged 37 to 52—do not have wills. Be it lack of financial affluence or miseducation; both peer groups don’t appear to bother. When it comes to getting your affairs in order, you need a plan for the future. Find out here what a living trust is, how it works, and why you need one. If you’re considering establishing a living trust, consulting with an experienced attorney is highly recommended. At New York Legacy Lawyers, our team of experienced Brooklyn trust planning lawyers can provide valuable guidance throughout the process, ensuring that your trust is properly structured. Contact us today at (718) 713-8080 to discuss how we can help you establish a solid living trust that reflects your wishes and protects your estate. What is a Living Trust and How it WorksA living trust is a legal document created prior to death. This trust acts as an arrangement between you and a trustee. In your passing, the trustee maintains possession of your property and assets. These assets flow into the trust. The trust goes into effect while you’re alive and maintains its effectiveness in your death. You may add a provision to stop the trust on a specific date. Until specified, the trustee continues to manage the trust on behalf of you and your named beneficiaries. There are several types of trusts. Discussed most often are the revocable and irrevocable trusts. Revocable Living Trusts are the most flexible of the two. With this option, you’re allowed to move assets in and out of the trust as you please. You also have the recourse to revoke the trust at any time. The Irrevocable Living Trust operates on more permanent motives. Once assets get placed in the trust, you cannot move or take them out again. Each state has specific rules and regulations on trusts. So be sure to educate yourself on the guidelines before you set one up.
Allowable AssetsThere are allowable and disallowable assets appropriate for transfer into a trust. And depending on the asset, the state may require you to get a new deed or title issued to the trust’s name. Some permissible assets include:
For accounts like 401K and retirement, it’s impermissible for the trust to own them. But you can, however, list the trust as beneficiary. The same goes for life insurance policies and IRAs. Who Owns The Property in Trust?Within the structure of a trust, the trustee is tasked with being the legal custodian of the trust’s assets. Despite many people perceiving a trust as an autonomous unit, traditionally, it’s understood to be an extension of the trustee. As a result, assets are usually registered in the trustee’s name rather than the trust’s. This can lead to complexities when the trustee changes, as banks and taxation authorities often necessitate re-issuing titles for accounts and properties. While there may be reasons to contest the need for such re-titling, as the property is technically owned by the trust, it’s typically less complicated to abide by these requirements. As a trustee, the individual’s job is to manage the trust’s assets for the beneficiaries’ sake. Unless the trustee is also a beneficiary, they’re not entitled to personally gain from the assets. Beneficiaries, conversely, play a more receptive role, obtaining advantages from the trust in the form of periodic distributions. Ownership of the trust assets will pass over to the beneficiaries once they are bequeathed to the beneficiaries in the form of gifts or as a matter of the distribution. To ensure that trustees perform their fiduciary duty in administering the trust responsibly, trustees receive trustees’ commissions as compensation for their service. Nevertheless, beneficiaries are allowed to actively ensure the trust is being managed appropriately, with the option of taking legal action against a neglectful trustee. Moreover, if permitted by the trust document, beneficiaries can exercise specific powers over distributions and have the authority to appoint successor trustees. What Does a Living Trust Do?A living trust is a crucial estate planning tool that allows you to manage your assets during your lifetime and ensure a smooth transition of your estate after you pass. The trust is a legally binding arrangement between you (the grantor) and a trustee, who takes responsibility for managing your assets held in trust. This arrangement doesn’t end with your death. Instead, the trust assets, which can include bank accounts, real estate, jewelry, cars, and securities among other things, are seamlessly transferred to your named beneficiaries under the trustee’s management. It’s important to understand that not all assets, like 401K and retirement accounts, are permissible for transfer into a trust. Living trusts can be categorized mainly as revocable and irrevocable. A revocable trust offers flexibility, allowing you to move assets in and out of the trust freely and even dissolve it if you wish. Conversely, an irrevocable trust is more rigid. Once assets are placed into this trust, they cannot be removed or altered without the consent of the named beneficiaries. A living trust allows you to maintain control over your assets during your lifetime and ensure a well-organized transition of your estate, reducing potential conflicts among beneficiaries and circumventing the often lengthy and costly probate process. Why You Should Consider A TrustThere’s no rule of thumb about who should and shouldn’t have a living trust. You should always take stock and inventory of what you have. And if you have dependents, decide if you’d like to leave them in a better financial situation. You can work with an estate planning attorney to help you figure out the best way to manage your assets in life, and death. Set up an Estate PlanDon’t leave your future up to fate. Be proactive about your financial plans and set up a living trust. Arrange your affairs the right way so that you and your loved ones benefit in the end. Request a consult today for more insight into estate planning and asset protection. Contact us at (718)713-8080 to schedule a consultation. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/matters-of-trust-what-is-a-living-trust-and-do-you-need-one/
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Estate planning involves the preparation and strategic organization of your assets for their orderly distribution. It involves all your possessions, such as tangible assets, intellectual property, investments, automobiles, business interests, real estate properties, and more. The role of an estate planning lawyer is crucial in helping you minimize uncertainties related to estate management while maximizing the value retained for your heirs. This includes reducing potential taxes, legal fees, and other expenses that could diminish the estate’s value. Engaging in proactive estate management, both during your lifetime and after, offers numerous benefits. In this article, we will explore the difference between trusts and wills, which are essential estate planning tools, that can provide security and advantages for you and your family, safeguarding the value of your estate. At New York Legacy Lawyers, our team of New York estate planning lawyers may be able to help you navigate this complex process, ensuring the protection of your assets and the fulfillment of your wishes. Contact us today at (718)713-8080 to schedule a consultation. What is Estate Planning?Estate planning is the process of organizing and managing your assets while you’re alive and ensuring their efficient distribution according to your wishes after your death. It’s a comprehensive process that involves drafting legal documents, such as wills and trusts, and devising strategies to minimize estate taxes and avoid probate. At its core, estate planning serves two critical purposes. First, it helps ensure that your assets are distributed to your designated beneficiaries in the manner you see fit. This could mean bequeathing property to family, donating to a favorite charity, or any other form of asset distribution that aligns with your intentions. It also provides an opportunity to strategize around New York’s estate tax laws. With careful planning, you can legally reduce the estate tax burden and maximize the inheritance left for your heirs. Estate planning also encompasses other considerations, such as appointing guardianship for minor children, designating healthcare proxies to make medical decisions on your behalf if you’re incapacitated, and assigning power of attorney to handle your financial affairs. In New York, the estate planning process is governed by state-specific laws, so it’s recommended to consult with a knowledgeable estate planning attorney. They can help you navigate the complexities of New York’s estate laws and ensure your estate plan fulfills your wishes and optimizes your financial legacy. Estate Planning Starts with a Last Will & TestamentA Last Will and Testament is perhaps the most well-known part of any estate plan. A will is necessary as it helps in making a decision on which your property goes to when you pass on. In addition to providing for the transfer of assets, you can also use a will to name Guardians for your children. As you consider drafting a Will, you will need to think about the Executor. The Executor will be the person you would like to handle the process of carrying out your will (and working through probate). If you would like to know more about Wills prior to contacting us, here is a more in-depth discussion on Estate Planning with Wills. You Can Also Create a TrustAnother way to protect your assets in your estate plan is via a trust. A trust is a tool you place all your assets into and then become the beneficiary of it. When you pass away, the trustee (person who has the authority to manage your trust) distributes your property per your directions. Here’s why trusts are so valuable to your estate planning. Trust assets do not have to pass through the probate process for the property to be transferred to the people you love. By skipping probate, you avoid a public court process. Where a will becomes a public document, open for others to look through, and even fight over, the assets and contents of a trust are more confidential. A well-crafted trust will likely save your family thousands in probate fees and potential legal costs from infighting. Here is a short article breaking down the difference between the types of trusts, including:
What Assets Cannot be Placed in a Trust?When establishing a living trust, it is crucial to carefully evaluate which assets are appropriate for inclusion. Not all assets are suitable for transfer into a living trust, as they may have specific legal and financial considerations. There are certain types of assets that are generally not recommended for placement in a living trust. Here are a few examples: Retirement accounts: Assets like 401(k), IRA, 403(b), and certain qualified annuities should not be transferred directly into a living trust. Transferring these assets may result in income tax obligations since they require withdrawal. However, you can designate the living trust as a beneficiary to facilitate the smooth transfer of funds upon your passing. Health savings accounts or medical savings accounts: These accounts are designed for tax-free utilization on eligible medical expenses and cannot be transferred to a living trust. Similar to retirement accounts, you can designate the trust as a primary or secondary beneficiary. Active financial accounts: Unless you are the trustee with complete control over trust assets, it is generally advisable to keep accounts used for monthly bill payments separate from the trust. This is because individuals may have concerns about potential delays in probate and the inability to quickly distribute these funds to heirs. Instead, you can designate beneficiaries for these accounts using options like payable-on-death (POD). UGMA/UTMA accounts: If the trustee were to pass away before the minor, a trust might be subjected to probate. In such cases, it is advisable to consider appointing a successor custodian for these accounts.
Get Help with a Will, Trust, Or Both!Wills & Trusts are both essential estate planning tools. They can get to be quite complex, however. If you are actively looking into planning for your own future, and for the future of your family, then engaging the services of a highly rated and local estate planning law firm is your best bet. Yana Feldman & Associates, PLLC would love to help you craft the perfect estate plan. Contact us today to set up your estate planning appointment. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/wills-trusts-the-estate-planning-process-in-new-york/ When it comes to estate planning, most people think it is about what happens to our stuff when we get older. Few people understand that it is also about what happens to ourselves while we are still young. As soon as we turn 18 we are considered legally responsible for our own decisions in terms of finances and health. This means that parents of young adults lose their legal authority over their child and are no longer able to access their health or education records or assist in managing their affairs. For this reason, it is critical to hire an estate planning attorney. They can help you navigate the complex legal issues involved in estate planning and ensure that you have all the necessary documents in place, including advanced directives. Having a plan in place with the help of a skilled New York estate planning lawyer can alleviate stress and confusion for both the young adult and their loved ones. Having these directives in place allows them to:
WHAT IS INCLUDED IN THIS SET OF DOCUMENTS?There are four documents we include in our Advanced directives packets:
Let’s take a deeper dive into each one POWER OF ATTORNEYYoung adults may need powers of attorney to authorize someone they trust to make important financial or legal decisions on their behalf. Parents may encounter situations where their young adult children are unable to manage their affairs due to unexpected events, such as an accident or illness, or when they are traveling or away from home and need someone to act on their behalf. Powers of attorney can be durable or non-durable and can cover a range of decision-making authority, such as managing bank accounts, paying bills, signing contracts, and making medical decisions. A power of attorney can help ensure that their financial and legal matters are taken care of according to their wishes, without the need for a court-appointed conservatorship or guardianship. Having a power of attorney in place can also prevent potential disputes among family members or other loved ones and provide peace of mind to both the young adult and their family. MENTAL HEALTH POWER OF ATTORNEYIn New York, a mental health power of attorney is a legal document that allows an individual (referred to as the “principal”) to appoint a trusted agent to make mental health treatment decisions on their behalf in the event that they become unable to make decisions for themselves. This type of power of attorney is authorized by the Mental Hygiene Law in New York State. A mental health power of attorney can be particularly important for individuals who have a history of mental health issues and want to ensure that their wishes regarding their mental health treatment are followed. The agent appointed in the power of attorney document can make decisions about the principal’s mental health treatment, including consent to or refusal of treatment, and decisions about hospitalization, medication, and therapy. It’s important to note that a mental health power of attorney only applies to mental health, for general Medical Care you need the document up next.
Health Care Proxy for College StudentsHealth care proxy for college students is an essential legal tool that allows a designated individual to make medical decisions for the student in case they’re unable to do so due to severe injuries or mental health issues. Upon turning 18, students legally become adults and parents lose the legal right to make healthcare decisions for them. This is where a health care proxy comes into play. A health care proxy grants parents the right to access their child’s medical records and make informed decisions about their treatment, based on the child’s wishes and available medical facts. This ensures that parents can still look out for their child’s health when they’re away at college. The risk of accidents or sudden illness that could incapacitate the student and leave them unable to make health care decisions is always present. A health care proxy is a proactive measure to prevent such situations from leading to confusion or legal hurdles. The benefits of having a health care proxy for college students are numerous. The person chosen by the student gets to decide on treatments, ensuring that their wishes are carried out accurately. It also helps prevent unnecessary treatments that may not align with the student’s best interests. Most importantly, it helps avoid confusion and legal complications in critical situations. A health care proxy is a wise investment in a student’s health and well-being while away at college. HEALTH CARE DIRECTIVES & HIPPA RELEASEHealth Care Directives (also known as a durable power of attorney for health care) provide a set of instructions for family and medical professionals to follow in the event of a medical emergency. A healthcare proxy should be familiar with their values and wishes, and will help plan for situations that cannot be foreseen, such as a serious car accident or stroke. FERPA RELEASEAs a general rule, it is a good idea for college students to sign a FERPA release, as it allows their parents or legal guardians to access their academic records and other educational information. The Family Educational Rights and Privacy Act (FERPA) is a federal law that protects the privacy of student educational records, but it also allows for the release of those records to parents or legal guardians of dependent students under certain circumstances. By signing a FERPA release, a college student can authorize their parents or legal guardians to access their academic records, including grades, transcripts, and financial aid information. This can be helpful for parents who want to stay informed about their child’s academic progress and provide support when necessary. Now that we have talked about what these documents do and why they are important, let’s discuss how to set them up! Because all 18-year-olds are considered legal adults, the decision to sign these Advance Directives should be made in collaboration with their parents or legal guardians and an estate planning attorney. While some documents you may obtain on your own such as the HIPPA release, the Financial Power of Attorney in particular is a powerful document that should be properly prepared by an attorney. This ensures that the documents will work as intended and your attorney can also provide counsel on how to use them correctly. Creating advance directives is an important part of planning for the future, if you are ready to get started make sure you contact us today. ESTATE PLANNING FOR YOUNG PROFESSIONALSMany young professionals neglect estate planning, since they have few assets, are single, and in good health. However, estate planning is just as necessary for a young professional as it is for older, rich, and married individuals. One of the critical aspects of estate planning is creating a power of attorney. This document authorizes someone to act on your behalf in financial and medical situations if you become incapacitated. With the power of attorney, should the unexpected happen, you can avoid guardianship, which can be expensive and time-consuming. Another important estate planning tool is an advanced directive for healthcare. If you have set up an advanced directive, you will appoint a healthcare proxy to make medical decisions for you should you be unable to make them yourself. This document also enables you to specify your preferences for end-of-life care and organ donation, which can alleviate the burden on your family. Creating a will or trust is also essential in estate planning. Without a plan, the law determines the distribution of your assets. Having a will allows you to decide on the allocation of your assets, which also involves designating a legal guardian for your underage children. In addition, a trust can help you avoid the probate procedure and make certain that your assets are distributed according to your preferences. If you’re a young professional looking to secure your future and protect your assets, consider working with a skilled New York estate planning lawyer. At New York Legacy Lawyers, our team of experienced estate planning attorneys may be able to help you create a comprehensive plan that addresses your unique needs and goals. Contact us at (718) 713-8080 to learn more about how we can help. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/estate-planning-for-young-adults/ Trusts are valuable estate planning tools if you want to ensure your children or other relatives receive their share of your estate. However, choosing whether to center your estate plan on a trust or a will can be tricky. Trusts can be independent from a last will and testament but often work hand-in-hand with them. Often, trusts are used to ensure that children or grandchildren have the funds they need to go to college, or to fund a local charity, provide a down payment on a business or home, or even to provide a safety net for your assets as you age. And this is not nearly all the ways a trust can be used. Trusts are incredibly versatile financial tools that will offer long-term benefits to those who receive them. Consulting an experienced Brooklyn trust planning lawyer can help shed more light on how trusts can be a helpful addition to your estate plan. Our skilled Brooklyn estate planning attorneys at New York Legacy Lawyers are ready to help you understand how trusts can help in achieving your estate planning goals. Here is a short article covering the nuts and bolts of how a trust works. Placing Assets in a TrustIf you decide to put your assets in a trust, you will need to determine what type of trust to choose. Living trusts are established during your lifetime. You will maintain control over the assets that are placed within the trust, allowing you to add or remove them as needed. A testamentary trust is established after your death as part of your last will and will ensure that the chosen beneficiary receives their portion of your estate in the manner set within your will. They may receive a large part at the beginning followed by smaller amounts over time or when they receive a designated age. There are, as mentioned earlier, many more types of trusts to consider. Contact us today and we can go over what kinds of trust would meet your needs. In the meantime, here’s some more information on trusts for you.
Maintaining Control of Your AssetsLiving trusts allow you to maintain control of your assets. Because this type of trust is established during your lifetime, you have the option of continuing to use the assets or to set them aside and allow them to build interest. As long as you are alive, you will have access to the assets held within the trust. You can add or remove things as needed. You can also close the trust if you change your mind and decide to alter how your money is dispenced, or if you need the funds for personal use. Trusts as Part of a WillTestamentary trusts allow you to provide for the needs of a loved one in a structured and secure manner. Trusts can be set up in a variety of ways, depending on the situation. If you have young children or grandchildren, establishing a trust through your will ensures that their financial needs are taken care of after you have passed away. Your testamentary trust may include securing their care and meeting their needs if they are a minor. One example of how a testamentary trust might be used: establishing a college fund that will enable someone to afford for their college and living expenses. Taking Care of Those You LoveTrusts are a great way to secure the future of your loved ones. For parents with young children, creating a trust through their last will enables them to make sure all of the expenses of taking care of their minor children are taken care of, allowing the children to live as full a life as possible. What is the Name of the Trust?A trust can be used by an individual to hold assets for the advantage of another. Because a trust gives people more discretion over how their assets are managed and distributed, it is a crucial estate planning tool. By creating a trust, grantors can make sure that even after they pass away, their assets are used to benefit their loved ones in the way they wish. Additionally, trusts can aid in tax planning and asset protection to prevent potential problems such as lawsuits, bankruptcy, or other creditor actions from happening. There are numerous things to consider while naming a trust. It is preferable to refrain from using names that might be mistaken for those of already-existing entities or individuals. Clarity may be improved by descriptive names, particularly if the trust has a clear objective or goal. Think about how long the trust might last and whether the name you select will still have value in the future. A knowledgeable estate planning attorney should be consulted if you are thinking about creating a trust. A lawyer can assist you in creating a trust that satisfies your unique requirements and objectives and in understanding your possibilities. Additionally, lawyers can offer advice on trust naming and guarantee that the trust conforms with all relevant legal requirements. Establishing a trust is a critical component of estate planning. Working with an estate planning attorney can help you set up your trust properly and guarantee that your assets are managed and distributed in line with your preferences. If you require assistance with estate planning, don’t be hesitant to consult a qualified estate planning attorney. What Happens When One Co-Trustee DiesWhen a co-trustee passes away in the state of New York, the overall effectiveness of the estate plan does not immediately cease. Rather, the legal responsibilities and duties that were previously shared amongst the co-trustees typically transition to any remaining co-trustees or to a successor trustee, if one has been specifically named in the trust agreement. The surviving co-trustee(s) in such scenarios is entrusted with the full control and management of the trust’s administration. This ensures that the trust continues to operate smoothly without significant disruption. They will effectively manage all trust assets, make distributions as necessary, and handle any other administrative tasks that were once the responsibility of the deceased co-trustee. In situations where the trust document does not designate a successor trustee, or in the event that all co-trustees have passed away, the probate court may step in to appoint a new trustee. This is done to ensure that the trust does not become leaderless, as this could lead to mismanagement and eventual erosion of the trust assets. It’s important to note that this transition process may not always be straightforward. The language of the trust document and the specifics of the situation can introduce complexities that require careful navigation and understanding. Therefore, it is always advisable to engage an experienced New York trust planning attorney when dealing with the death of a co-trustee. Call Yana Feldman & Associates if You Want to Learn More!If you have questions about establishing a trust (either living or testamentary), contact Yana Feldman & Associates today! We have over 15 years of experience supporting families like yours. And we understand how important it is to take care of your family. Trusts are just one of many types of financial resources you can use to secure the future of your loved ones. It’s essential that you work with an attorney who specializes in this type of law. Contact and schedule a consultation today. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/how-does-a-trust-work/ Estate planning in New York is a very involved process. When an individual passes away, their estate would have to pass through a court process before the beneficiaries can have access to their inheritance. Overseeing the inventory, verification, and division of the individual’s estate is not an easy undertaking.. Managing the estate through probate or administration is a very important role fulfilled by either an executor or an administrator. Being the executor or administrator of an estate is not a role to be taken lightly. Nonperformance of your duties can result in penalties. You may also be required to deal with will contests and creditors who make claims against the estate. A skilled estate planning lawyer can help you understand and assist you in performing your duties. Our experienced New York estate planning attorneys at New York Legacy Lawyers are experienced in assisting executors and administrators through the often complicated probate process. To learn more about how we can help, contact our office today at (718) 713-8080 or fill out our online form. What Is an Executor vs. an Administrator?In New York, when someone passes away (sometimes called a decedent) and leaves behind an estate, the matter of managing their assets and liabilities, paying off creditors, and distributing what’s left to the beneficiaries is not handled by the court directly. Instead, it is up to an executor or an administrator to oversee this process. An Executor is a person or entity that a decedent names in their last will and testament. It may be an individual, a trust company, or a bank.. Multiple executors can be appointed simultaneously and work together to administer the estate. When a person dies without a will (dying intestate) or if the person’s will did not declare an executor, the court will appoint an administrator to take over the role of managing the process of estate. New York law lists the order in which different relatives have priority to serve as administrator of an estate. Executors and administrators are responsible for gathering and creating an inventory of the property a decedent left behind, paying off any taxes or other bills due, receiving and validating any claims from creditors, and distributing any remaining assets to the beneficiaries. What is the process of appointing an executor or administrator? In order to be appointed, the nominated executor or the proposed administrator often hires an attorney to guide and advise them. First, a petition must be prepared that lays out the information about the decedent. This petition must list anyone who would be affected by the proceeding, such as the heirs or distributees of the decedent. These groups can include people who are going to inherit under the will, people who would have inherited if not for the will, and people who would have inherited under an older version of the will. There are also additional documents and affidavits that must be prepared and filed with the Surrogate’s Court. Certain classes of people must either sign a Waiver and Consent if they do not object to the appointment of the nominated executor or proposed administrator. After notice has been issued to those entitled to inherit, the Surrogate’s Court will hear any complaints or contests to the appointment of the potential administrator or executor. If there are no objections, the heirs or distributees would have to submit a waiver indicating their consent to the appointment of the executor or administrator. Executors are issued Letters Testamentary to indicate their authority while administrators receive Letters of Administration. The court can also issue official documents to the executor or administrator of an estate to help them in mustering the assets of the decedent. Estate executors and administrators are entitled to be compensated for their work, the amount of which depends on the size of the estate. This is called a commission and is calculated based on a formula. However, some executors choose to forgo commissions, especially if they are a close friend or family member of the decedent. Banks or trust companies may actively seek compensation and may reject the role of executor if the size of the estate does not meet their requirements. An executor needs to follow the wishes of the decedent as written in the will and the administrator must manage the estate according to New York’s intestacy laws. Both executors and administrators have a fiduciary duty to perform their roles properly. They are legally required to put the best interests of the estate over their own or risk having a complaint filed against them in the Surrogate’s Court. It’s important to remember that while executors and administrators can perform the same function, there are some key differences between the two.
Who is Eligible to be Appointed?As mentioned, an executor is a person nominated under a will to oversee the management and distribution of the estate. Not just anyone can be appointed as an executor. New York law mandates the following requirements before a person can be accepted by the Surrogate’s Court as the executor of an estate:
An administrator is usually appointed through a more complicated process. However, if the estate is valued at less than $50,000, the Surrogate’s Court may approve a simplified Voluntary Administration process. If the next of kin of the decedent cannot be established or is too distant, the Public Administrator of the relevant county will oversee the distribution of the estate. In cases where the next of kin is interested in acting as administrator, they would need to provide the Surrogate’s Court with a Kinship Affidavit, also called an Affidavit of Heirship, determining their relationship with the decedent. They must also submit additional documentation to show their eligibility to be the estate’s administrator. Being the executor or administrator of an estate is a significant responsibility. Even though an executor has been named in a person’s will they cannot be coerced into taking on the duty. The probate process can take months, even years. The management of the estate is also subject to additional scrutiny from the Surrogate’s Court which can make the process daunting. New York State Executor RequirementsIn New York State, an executor is a vital role assigned in a will to administer a decedent’s estate. The executor is tasked with implementing the will’s provisions, including collecting assets, paying debts and taxes, overseeing estate assets, and distributing remaining assets according to the will. To serve as an executor in New York, one must meet several requirements. The person must be at least 18 years old, of sound mind, and have no felony record. Unlike many states, New York does permit out-of-state executors. However, New York judges hold the power to reject an executor request in a will for various reasons, including inappropriate behavior or inadequate language skills. Executor compensation in New York is determined by the state and is equivalent to a percentage of the estate’s value. The commission structure for each executor is tiered, starting at 5% on the first $100,000 of the estate, then decreasing as the value of the estate increases. In some instances, executors and administrators are required to purchase an executor bond in New York. This bond serves as a guarantee of the executor’s fiduciary responsibilities. Hence, when choosing an executor, consider factors like trustworthiness, responsibility, organizational skills, and diligence, as well as potential conflicts of interest among beneficiaries or between executors. The chosen executor should be capable of considering the estate’s overall interest. Checks and BalancesDespite the fiduciary obligations executors and administrators have to the heirs and to the estate, there are still instances where mismanagement happens. To prevent this, the Surrogate’s Court can restrict the authority of administrators and executors when collecting or selling off assets and property. Even if a will explicitly states that an executor does not have to pay a bond to act in their responsibility, the court can still impose the bond requirement if it judges that it is necessary. While a bond can be optional for executors, an administrator is usually required to submit a bond to act as insurance in case the administrator engages in ruinous activities that jeopardize the estate and to cover potential losses. The Surrogate’s Court also hears any contests to the appointment of an executor or administrator. Whether you have been nominated as the executor or are planning to apply as the administrator for an estate, getting the help of an experienced New York probate attorney is beneficial. A skilled attorney can assist you in performing your duties, help you understand New York’s probate law, and keep updated with the legal processes involving the management of the decedent’s estate. Our team of estate planning attorneys at New York Legacy Lawyers, led by top-rated New York probate attorney Yana Feldman, has provided quality legal assistance to individuals maneuvering the probate process. We can assist you through your duties and responsibilities and help you facilitate the probate process as smoothly as possible. We can also represent and defend your rights from potential legal challenges. Schedule a consultation today with experienced New York probate attorney Yana Feldman. Contact New York Legacy Lawyers today at (718) 713-8080. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/executor-vs-administrator-what-is-the-difference-in-new-york/ Without proper planning for the transfer of your assets before your death or incapacitation, you relinquish control over who inherits your estate, potentially causing your loved ones to bear the financial burden. Fortunately, there are several strategies to prevent this all-too-common scenario, and one vital component of a well-rounded estate plan is setting up a trust. In this article, we delve into essential information about trusts and offer guidance on incorporating them into your estate planning. Don’t miss the opportunity to take control of your assets and secure your loved ones’ future – consult with a skilled Brooklyn trust planning lawyer for tailored advice on crafting a trust that suits your unique circumstances. Call the New York Legacy Lawyers today at (718) 713-8080 to schedule a consultation. A Quick Primer on TrustsTrusts are a tremendous tool you can use in addition to your Last Will & Testament. Fundamentally, a trust is an estate planning tool which helps to manage the distribution of your property by transferring your estate into a separate entity and then to your beneficiaries (which may include yourself) when certain pre-defined conditions have been met. Reasons to Create a TrustA Trust is set up to protect and manage a family’s assets for the benefit of both current and future generations. There are many reasons to create a trust some of which include
There certainly are more reasons to establish a trust. Connect with us to see if your individual situation can be or should be addressed via trust establishment.
Establishing a trustThe basics of creating a trust require the settlor, who is the property owner, to transfer legal ownership of the property to the trustee, who can be an individual or an institution (including the settlor). The trustee then manages the property for the benefit of the beneficiary. A fiduciary relationship is created by the trust, running from the trustee to the beneficiary. Therefore, the trustee must work for the best interest of the recipient when managing the trust property. In some cases, the settlor may act as the trustee and retain the ownership of property instead of transferring it, in which case, they must act in a fiduciary capacity. The settlor is also allowed to name themselves as one of the beneficiaries of a trust. Can You Set Up A Trust Without An Attorney?When individuals encounter the concept of a trust, they often imagine a complex and intimidating legal paperwork. However, a trust fundamentally represents an arrangement in which an individual, referred to as the grantor, entrusts another person with the authority to manage specific assets on behalf of someone else’s benefit. The complexity of a trust can vary depending on the specific circumstances involved. While it is possible for individuals without legal experience to create a trust on their own, it may not always be the most practical choice. It is important to note that trusts can become intricate, and legal regulations may change over time. Consulting with a qualified attorney can assist individuals in navigating potential challenges and ensure that their trust achieves their goals. There are multiple situations where seeking the guidance of an attorney is highly recommended. If your net worth is approaching the estate tax exemption threshold, engaging in estate tax planning can offer substantial advantages for the beneficiaries of your estate. Additionally, if you have a child with special needs, prefer a non-standard distribution method for your estate, or need assistance with financing the trust, it is recommended to work closely with an attorney to establish a trust. Even for less complicated matters, working with an estate planning attorney can provide the assurance of a professionally crafted estate plan and be a valuable resource for addressing any questions you may have. At New York Legacy Lawyers, our Brooklyn trust planning lawyers have the experience to help individuals and families establish trusts that meet their unique needs and goals. We can guide you through the intricacies of trust creation, ensuring that your assets are protected and your wishes are carried out seamlessly. Contact us today to schedule a consultation and take the first step towards peace of mind and comprehensive trust planning assistance. How Long Can a Trust Remain Open After DeathA trust can remain open for varying durations after the death of the grantor, depending on the trust’s purpose, type, and the beneficiaries involved. The time frame for a trust to remain open can range from a year to several decades, or even for the lifetime of a beneficiary. Trusts often stay open for extended periods when beneficiaries are minors. In such cases, the trustee may be tasked with distributing funds carefully and periodically, ensuring the beneficiary receives the money and property when they reach adulthood. Certain trusts, such as qualified perpetual trusts or dynasty trusts, are designed to continue beyond a year and can last for several decades. These trusts are often established to preserve family wealth across multiple generations. Special needs trusts cater to beneficiaries with disabilities, providing financial support throughout their lives, far longer than the 21-year rule applied to some trusts. These trusts can remain open for the beneficiary’s lifetime or until funds are depleted. Trusts can end sooner than the time frames mentioned above, often dissolving shortly after the grantor’s death. Once the assets and property within the trust have been distributed to the beneficiaries, the trust is terminated after signing a trust dissolution form. In some cases, it is in the beneficiaries’ best interest for an irrevocable trust to end relatively quickly, such as within a year. This can avoid annual accountings and trustee fees that may reduce the trust’s assets. Additionally, a trust that remains open for too long may create opportunities for disputes among beneficiaries, potentially leading to legal action against the trustee. Next StepsTrusts are a great way to safeguard your estate for the benefit of your loved ones. However, there are several more parts of a fully developed estate plan. If you’re serious about getting your assets and estate in order, including setting up a trust, then you should speak to an estate lawyer. We provide assistance with estate plans, including establishing trusts, for clients in Brooklyn, NY. Please contact us today! via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/heres-what-you-should-know-about-a-trust-how-to-set-one-up/ You may have heard the phrase durable power of attorney. The critical aspect of a durable power of attorney is its enduring nature. Regardless of the type of power of attorney, the term “durable” indicates that the POA remains valid even if the individual it concerns becomes incapacitated. In this article, we will explore the implications of a durable power of attorney on the financial and healthcare responsibilities of the person requiring a POA. Don’t hesitate to consult an experienced New York estate planning attorney to help you navigate the complexities of setting up a durable power of attorney tailored to your unique needs. Call the New York Legacy Lawyers today at (718) 713-8080 to schedule a consultation. Financial Power of AttorneyA financial power of attorney names someone to oversee your finances. Often this instrument is used if you become incapacitated or are unable to be present to take care of a financial matter. A lot of the time travelers, service members, students, and people in similar situations will establish a financial power of attorney to enable a trusted person to take care of business when they cannot be around. On this point, the person you choose to have power of attorney over your finances should be someone you trust to not steal from you or let your financial obligations fail for some reason. In short, someone very trustworthy! Lastly on this point, naming a financial power of attorney does not mean that you do not have control over your finances – this need not be a permanent arrangement. You can always revoke a power of attorney! A durable power of attorney has similar obligations but stays in effect (or can be setup to go into effect) when you become unable to make your own decisions due to incapacity. IMPORTANT – if your power of attorney isn’t durable, it wouldn’t be able to help you when you need it most – if you become unable to take care of your own affairs Some people request a SPRINGING durable power of attorney, which would only go into effect upon certain conditions being met. Usually, it is something like two physicians state that you are incapacitated. A durable power of attorney ends when you die, or on the date you choose. Healthcare Power of AttorneyA healthcare power of attorney is called a Healthcare Proxy in New York State. It names someone to make healthcare decision for you if you become incapacitated. When choosing someone, you want to be sure that they are aware of what decisions you would make for yourself if you are able. That person should also live near enough that they can get to the hospital quickly when the time comes for them to make medical decisions for you, or at least be easily reached by phone. A few decisions you want to discuss with your healthcare proxy are:
In New York, a healthcare proxy only goes into effect when you are unable to make your own decisions. And you can change it or revoke it at any time.
Durable Power of Attorney Requirements in New YorkAccording to the New York Consolidated Laws, General Obligations Law, Section 5-1501B, a financial Power of Attorney must:
New York has created a financial power of attorney form as well as a healthcare power of attorney form that needs to be filled out and signed by both you and the person you name. You do not have to use the same person for both your financial and medical power of attorney. They can be two separate people. Further, on the financial power of attorney, you can have more than one person serving at the same time. It is a great idea to download the healthcare proxy form and follow the directions to fill it out and have it properly witnessed. But if you are thinking about doing the same thing for the Durable Power of Attorney… How To Sign As Power Of AttorneyWhen signing as an agent under a New York power of attorney agreement, it is essential to adopt a meticulous approach to effectively communicate that you are representing the principal. Some financial institutions and legal documents may require a specific signature format. Below are the steps to help you navigate the often intricate procedure of signing as a power of attorney: Gather Your Power of Attorney Agreement and IdentificationWhen you are signing as a power of attorney (POA), it is crucial to ensure that you have either the original or a copy of the fully completed and signed power of attorney form with you, regardless of whether you have previously provided a copy to the relevant institution, such as a bank, financial agency, or government entity. You must also bring government-issued photo identification. This ID serves to confirm your identity as the person designated in the power of attorney and to verify the authenticity of your signature. Identifying the Preferred Signature FormatMany agencies and institutions maintain particular requirements regarding signature formats when executing tasks under a power of attorney. It is recommended to take the initiative and contact them in advance to confirm the preferred format. If there is no specific preferences, you can use a standard format like the one shown in the signature sample below:
Sign on Behalf of the PrincipalBegin by signing the document in the principal’s name. This action clearly signifies that you are representing the principal and not acting in your individual capacity. Ensure you use the principal’s full legal name, replicating the format if it appears on any existing paperwork at the institution. Affix Your SignatureBelow the principal’s name, sign your own name. Include the word “by” before your name to indicate that you are signing as a POA on behalf of the principal. Specify Your Authority as Attorney-in-FactAdjacent to or beneath your name, make it explicitly clear that you possess the authority to sign on behalf of the Principal. To indicate your signing authority, include “attorney-in-fact” below or adjacent to your name. Alternatively, you may utilize acceptable alternatives like “agent,” “POA,” or “power of attorney.” Neglecting to specify that you are signing on the principal’s behalf under a power of attorney could potentially make the agreement invalid, resulting in legal consequences, including civil or criminal actions. Protect the DocumentationThe last step involves securely storing each document you’ve signed in a safe location. Your role and obligations as a power of attorney for a loved one or family member can be a big responsibility, but with proper preparation, it can become a manageable task. Always comply with any specific instructions and maintain a well-organized record of the proceedings for future reference. When it comes to understanding how to sign as power of attorney in New York, navigating the legal intricacies can be complex. However, with the guidance of a knowledgeable New York estate planning attorney, you can confidently navigate this process. At New York Legacy Lawyers, our attorneys can provide you with legal advice and support, ensuring that you make informed decisions and execute your responsibilities as power of attorney effectively. Contact us today to schedule a consultation and secure your peace of mind in estate planning matters. Do Spouses Automatically Have Power of Attorney?Even if you’re married, it’s crucial to understand that spouses don’t automatically have power of attorney. Without establishing a power of attorney, you leave the door open for strangers to make critical decisions on your behalf. Should you become incapacitated without a power of attorney in place, your spouse will face the daunting task of going to court to obtain legal authority to act for you. This process is time-consuming and expensive, causing additional stress during an already difficult period. Marriage alone doesn’t grant your spouse the right to act on your behalf. In the absence of a power of attorney, they must apply to the Court of Protection. This court determines mental capacity, makes decisions regarding health, care, property, and finances, and appoints a deputy to act for the incapacitated person. Unfortunately, you cannot choose your own deputy, and their authority will be limited by the court’s decision. Don’t let uncertainty define your future. Consult with an experienced estate planning attorney today to establish a power of attorney, ensuring that your interests are protected, and your decisions are made by someone you trust. Call the New York Legacy Lawyers today at (718) 713-8080 to discuss your options and secure peace of mind for you and your loved ones. Hang on a Second Before You Download Those FormsIt is highly recommended that you use an estate planning attorney to prepare the durable power of attorney. First of all, it is very easy to make a mistake – New York law drastically limits the authority that is granted under the basic power of attorney form. To give your agent the ability to create trusts, transfer assets, change beneficiaries, make gifts, etc. – all the things that you may actually need them to do if you become incapacitated, the basic form must be heavily modified and you need to add a special Rider. We’ve seen lots of cases where a huge amount of time, stress, and money were lost because an inexperienced person forgot a few words or to “Initial Here” in one spot. Moreover, there are other things you need to consider when planning for your financial and health future. Namely, a Last Will & Testament, a trust, estate taxes, and a couple of other things we’d love to tell you about. If you are ready to set up a durable power of attorney of any type, please contact us today! Get the support you need from our New York legacy lawyers. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/what-you-need-to-know-about-a-durable-power-of-attorney-in-new-york/ Are you considering providing financial support to a loved one with special needs? It’s common for individuals to name their loved ones as beneficiaries in a will, but this approach can unintentionally lead to financial turmoil. By doing so, you could inadvertently disqualify them from crucial government programs, causing them to lose vital financial and medical assistance. In this post, we’ll walk you through the ins and outs of special needs trusts, answering the top five questions you may have. As you explore this option, it is important to note that a skilled New York special needs trust attorney can provide invaluable guidance and expertise. At New York Legacy Lawyers, our team of Brooklyn special needs trust lawyers may be able to help ensure your loved one’s future is secure. Contact us today at (718) 713-8080 to schedule a consultation. What is a Special Needs TrustA Special Needs Trust (SNT), also referred to as a supplemental needs trust, is a specialized legal arrangement designed to support an individual with a severe, long-term disability. The trust serves as a reservoir of funds to cater for the unique, ongoing needs of the beneficiary, aiming to enhance their quality of life without compromising their eligibility for government assistance. The SNT is typically established within wills, becoming effective upon the death of the donor. Its primary purpose is to provide financial support beyond what the government provides, without causing the beneficiary to exceed the asset limit set by government assistance programs such as Medicaid. Therefore, the funds in the SNT are used to supplement, not supplant, government benefits. The creation of an SNT in New York follows the same requirements as any valid trust. However, it must also include specific provisions mandated by New York State law. If correctly drafted to align with these laws, the trust assets won’t be considered when the government determines eligibility for aid. An SNT can be initiated by anyone for the benefit of any disabled person, regardless of their relationship. Commonly, parents of disabled children establish these trusts, but they could also be set up by grandparents, other relatives, or even a compassionate neighbor. To ensure the government doesn’t count the trust income when determining benefit eligibility, SNTs are irrevocably structured. In cases where a disabled person with assets decides to create an SNT for their benefit, any remaining assets upon their death must be used to reimburse the government for any public benefits they received during their lifetime. This arrangement helps preserve the individual’s assets while also ensuring they receive the necessary support from both the trust and government benefits. Things You Need to Know About Special Needs TrustsHere’s how this type of trust can protect a beneficiary with disabilities. 1. What Are the Benefits?These types of trusts give you an extra layer of protection, ensuring that the beneficiary can acquire and maintain the level of support they need. Unlike a will, they give you the ability to dictate the way your money is spent. 2. How Can a Beneficiary Access their Trust?Giving a loved one with special needs money directly can complicate issues in a number of ways. However, doing it through a trust doesn’t mean that it’s difficult for them to access it. If they choose, they’re able to use those funds for recreational use, as well as to pay for personal care, medical expenses, accommodation, education and transport. 3. What Should Be Included?It’s important to go through your trust thoroughly to make sure it covers all the bases. In order to be legally watertight, it has to include specific language. First of all, it needs to state that it’s intended to provide “supplemental and extra care” rather than basic support. This clarifies that it funds extra services that the government won’t provide to the trustee. The trust should also explain that its an exception to the Omnibus Budget and Reconciliation Act, and include any provisions from the United States Code. Finally, there should also be information regarding the Medicaid payback process. 4. How Do They Affect Government Assistance?Inheritance of anything over $2,000 can cause a disabled person to lose government benefits. This means they’ll no longer have access to subsidized housing, Supplemental Security Income, or Medicaid. A special needs trust allows you to leave them money without the risk of disrupting their current support. This is because they address the complicated needs of each individual, separating their funds from their income. 5. What Options Do I Have?There are two main options you can choose from. The first is a first-person trust, which makes the beneficiary completely liable in the instance of another legal settlement, such as inheritance or a compensation claim. The second is a third-party trust, which gives parents or guardians more control over their funds. The money is used to secure the care and support their loved one needs, and anything outside of that can be allocated as they wish.
How to Set Up Special Needs TrustTo establish a special needs trust, a trust document must be created that outlines how assets will be managed and distributed for the benefit of an individual with special needs. Although it’s possible to create a basic trust without legal assistance, many families choose to consult with a special needs trust attorney who can help customize the trust to their specific needs. A special needs trust attorney can provide assistance and advice throughout the process to ensure that the trust document is tailored to meet the beneficiary’s unique requirements. They can also help navigate any complicated legal or financial issues associated with the trust. In the trust document, the individual creating the trust, known as the “grantor” or “settlor,” assigns assets to be managed by a “trustee.” Typically, the grantor will name themselves as the trustee and appoint a trusted individual as the successor trustee. The grantor will remain in this role until they die, become incapacitated, or resign, at which point the successor trustee takes over. Both the grantor and successor trustee are legally bound to follow the terms set out in the trust document, ensuring that the assets are used for the benefit of the individual with special needs, who is referred to as the “beneficiary” within the document. With the assistance of a special needs trust attorney, families can establish a trust that effectively supports and protects the beneficiary’s interests. Getting the Help of a Skilled New York Special Needs Trust LawyerDon’t leave your loved one’s financial security to chance. Seek the help of a skilled New York special needs trust lawyer who can help you navigate this complex process and create a trust tailored to your family’s unique needs. At New York Legacy Lawyers, our team of experienced New York special needs trust attorneys may be able to help ensure that your loved one receives the support and care they deserve for years to come. Contact us today at (718) 713-8080 to schedule a consultation. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/q-a-5-frequently-asked-questions-about-special-needs-trusts/ Estate planning law encompasses drafting of wills, trusts, guardianships and other documents that facilitate the transfer and management of property after death. In the absence of a plan, the distribution of a loved one’s assets after death can sometimes get very challenging! At New York Legacy Lawyers, our team of skilled New York estate planning lawyers’ goal is to help you to get ahead of these challenges by laying out the best possible plan for managing your assets in life and transferring them in death or incapacitation. Call us today at (718) 713-8080 to schedule a consultation. Estate Planning NYCEstate planning in New York City (NYC) extends beyond merely drafting a will. It involves strategizing to prevent family disputes, optimizing access to government benefits, minimizing tax liabilities, and ensuring your long-term care desires are clearly expressed. This guide aims to provide some fundamental insights into NYC estate planning. Contrary to popular belief, estate planning isn’t just for those with large, taxable estates. Regardless of your estate’s size, having an estate plan is crucial. Estate planning includes more than tax minimization; it employs wills and trusts for various purposes suiting individuals across different financial circumstances. Preparing a Last Will and Testament is a key part of estate planning. It allows an individual to dictate the distribution of their assets after their demise. In the absence of a will (a state referred to as intestate), the law of the jurisdiction where the deceased lived determines how the assets are distributed. For instance, in New York, if a person dies intestate, leaving behind a spouse and two children, the spouse gets the first $50,000 of the estate plus half the remaining balance. The children share the rest. If a person wishes to leave all assets to their spouse, this would not be followed without an estate plan. Please continue reading to see how Wills, Guardianships, & Trusts form the essentials of any estate plan. Estate Plan Fundamental #1: Draft a Last Will and TestamentA Will is a legal document used to outline your preferences regarding how your estate should be handled after your death. A will is very important to your heirs as it eases the transfer of property quickly and helps the survivors avoid unfair tax burdens. It is also a way of expressing your deepest sentiments to your loved ones. Depending on the estate size and preferences, a will can be a simple single-page document or a large detailed volume. A will should describe your estate, the people who will receive specific properties, instructions about care of minors, or disinherit people expected to get the property. Wills requirements in Brooklyn, New York, state that a testator (the person making the will) should be an adult of sound mind. The will should be written and signed by the testator, unless they are unable to do so in which case, the testator must appoint another person to sign it before a witness, and the signature witnessed. A will may have legal limitations which may restrict the testator from giving the full effect of their wishes. It’s best to discuss these points with an estate planning attorney directly. Estate Plan Fundamental #2: Plan for GuardianshipYour estate plan must address the issue of caring for your children in the future in case both parents are deceased (or unfit). Though no one wishes to die and leave their young dependent children, it can happen, and you need to be prepared for this. Your estate planning should include Guardianship provision, which is a legal relationship established by a court of law to give the responsibility of care and protection of minors to someone other than the parents. The court gives legal authority to the appointed guardian to make decisions concerning the child. In Brooklyn, New York, the guardian must be 18 years and above, and a citizen or legal resident of the United States. Guardianship provisions should be included in your will alongside your other instructions upon death. You can also appoint a guardian for your minors in your will. When you include guardianship provision in your will, you will be at peace knowing that your children will be well taken care of in case of your death. If you leave out a guardianship provision in your will, or have not established guardianship provisions, a judge will appoint a guardian for your children (without your input). You might imagine, this could end up very messy! Estate Plan Fundamental #3: Establish a TrustIn estate planning there are several different types of trusts, but at that root they all function is similar ways. When you establish a trust, you are creating a separate legal entity that you will then transfer some, or all, of your assets to. When creating the trust, you will decide on a means for distributing the assets and you will designate a beneficiary of that trust. Sometimes it’s easier to describe something like a trust by giving an example. John and Kate set up a trust naming themselves as trustees. They transfer their assets into the trust and still retain access to all the assets they owned before the trust was established). They designate that upon their passing, the successor trustee will be their daughter Lisa and the assets in the trust shall be disbursed according to their wishes. If you need other examples, please connect with us and we will walk you through all sorts of different trust types and which one best applies to your situation.
Estate Plan Fundamental #4: Get an Estate Planning AttorneyWhile estate planning is critical, it is quite complex, and you will likely need an estate planning attorney to help navigate the details and provide you with advice specific to your situation. We help people just like you create all these documents and more with our support. Contact us today for assistance. Seek legal guidance from our New York legacy lawyers. LIVING WILL VS. LAST WILL AND TESTAMENTA living will and a last will and testament are two essential legal documents of an individual’s estate plan. Although these documents share similarities in that they provide instructions for the management of a person’s affairs, they have distinct differences in focus, duration, and revocability. An advance directive, commonly referred to as a living will, is a legally binding document that allows people to express their medical treatment and decision-making preferences in case they become incapable. The document typically encompasses directions for life-sustaining measures, organ donation, and other medical interventions. It is a critical tool for ensuring that an individual’s wishes regarding their medical care are respected and followed, even if they are unable to communicate them at the time. A living will only goes into effect if the individual becomes incapacitated and can be revoked or revised at any time while they are still alive. Alternatively, a last will and testament is a legal instrument that specifies an individual’s desires for the allocation of their assets following their demise. It includes the designation of an executor to manage the distribution of assets and naming of beneficiaries. A last will and testament only goes into effect after the individual’s death and can only be changed by creating a new will or adding a codicil, which is an amendment to the existing will. Despite these differences, a living will and a last will and testament are crucial components of an individual’s estate plan. They ensure that a person’s medical and financial wishes are followed and can provide peace of mind for themselves and their loved ones. At New York Legacy Lawyers, our team of New York estate planning lawyers may be able to guide you in creating a comprehensive estate plan that includes both a living will and a last will and testament. Contact us today at (718) 713-8080 to schedule a consultation. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/three-fundamentals-of-estate-planning-in-ny/ Many politicians use the words “death tax” to refer to a tax on your estate. This tax is the tax you pay to transfer your estate to your heirs upon your death. It’s a highly contested political issue many Americans don’t completely understand. So, will you have to pay estate taxes? If so, how much? What does it mean for your heirs? Navigating the complexities of estate taxes can be daunting, but with the guidance of an experienced Brooklyn estate tax planning lawyer from New York Legacy Lawyers, you can gain clarity and peace of mind. Our attorneys can assist in simplifying the intricate world of estate taxes, ensuring you understand the process every step of the way. Contact us today at (718) 713-8080 to start your journey toward informed estate planning and secure a thriving future for your loved ones. Here’s a simple guide to this little-understood, and yet controversial tax. New York Estate TaxNew York imposes a state estate tax, which means that when a person passes away as a resident of New York or has property physically located within the state, their estate may be subject to taxation both at the federal and state levels. It’s important to know that the federal estate tax and New York’s estate tax operate independently of each other. In New York, residents and some non-resident property owners are subject to a state-level estate or inheritance tax upon death, in addition to the federal estate tax. New York’s estate tax rate is graduated, starting at 3.06% and reaching a maximum rate of 16%. For New York estate tax purposes, when the total value of assets passing to beneficiaries, excluding a spouse or charity, is below a specific threshold ($6.58 million in 2023), those assets are completely exempt from taxation, and New York estate taxes do not apply. However, as the estate’s value surpasses this threshold, the exemption gradually diminishes. If an estate exceeds the threshold by more than 5% ($6,909,000 in 2023), it loses the exemption entirely, and the entire value of the estate’s assets becomes subject to New York estate tax. This change in estate tax treatment for estates exceeding the New York threshold is often referred to as a “cliff tax.” Estates falling within the range between the threshold amount and the 5% excess are subject to partial New York estate tax. At New York Legacy Lawyers, our Brooklyn estate tax planning lawyers can help you in exploring options to minimize your estate tax liability and ensure a seamless transition of assets to your loved ones. We can guide you through the intricacies of estate planning, safeguard your legacy, and secure your family’s financial future. Contact us today to schedule a consultation and take the first step toward achieving peace of mind in your estate affairs.
You May Have No Estate Tax at All…The estate tax brackets range from 18% for estates valued under $10,000 to 40% for estates valued over $1 million. There is a catch. There is a lifetime exemption amount of up to $11.18 million. That means you can leave up to that amount to your heirs before the estate pays a tax. If your estate is valued more than the exemption amount, it will only pay taxes for the amount over the exemption amount. Keep in mind that this amount is per person. Married couples can leave up to $22.36 million to their heirs with no tax. The only people paying a tax on their estate are those who would fall into the 40% tax bracket. Even then, there are generous allowances for gifts. Unrealized Capital Gains May Be TaxedUnrealized capital gains account for as much as 55% of the total tax revenue from estates because the IRS doesn’t tax investment profits until you sell and “realize” the gains. Depending on how you plan your estate, these investment gains and losses may be subject to taxation. For example, you might transfer a valuable asset into an irrevocable living trust to reduce your taxable estate upon your death. The Individual States With Their Own Estate TaxDepending on where you live, your estate could be subject to state taxes. Keep in mind that state taxes may come with different exclusion amounts. When you get around to estate planning, be sure to discuss these matters with your estate lawyer. Your lawyer can help you plan the best course of action for your estate. In the state of New York, all estates valued more than $5.25 million will pay a 3.06% tax. And, those valued over $10.1 million will pay a 16% tax. The escalation you’re seeing is a graduated tax. Estate Planning is EssentialEstate planning is important for estates of all values. However, it becomes even more important as the estate becomes more valuable and complex. Each estate will need its own considerations. You should consult an estate planning lawyer to help you get your affairs in order before you die. This one step alone will save your heirs tons of trouble, and quite literally a lot of expenses/missed inheritance, following your passing. Contact us today to request an estate plan consultation. via New York Legacy Lawyers by Yana Feldman and Associates https://yanafeldmanlaw.com/estate-tax-for-beginner-an-easy-to-read-guide-to-estate-taxes/ |
AuthorYour legacy extends beyond the material possessions you leave behind. It includes the impact you have made on your family and community, and the lasting benefit you have provided to future generations. At New York Legacy Lawyers, we understand the importance of carefully planning for the future and ensuring that your goals are carried out. With over 20 years of experience in estate planning and elder law, our attorney, Yana Feldman, is equipped to help you achieve your vision and guide you through every step of the process. FIND US ONLINE Bitly Box Diigo DropBox Evernote Postach.io Inoreader Instapaper Nimbus OneDrive OneNote Raindrop Todoist Toodledo Trello Tumblr Weebly Wordpress Blogger Google Drive Youtube Google Map Related Links About.me Behance.net Dribbble.com Taplink.cc Gravatar.com Carrd.co Minds Justpaste Issuu Linktr.ee Solo.to ArchivesNo Archives Categories |