There’s nothing wrong with saving some dough by drafting your own estate-planning documents. You can find templates for basic wills and such online or in bookstores. But that should be followed with a review of those documents by an expert to insure everything is in order

Massachusetts estate planner Leanna Hamill, told AARP that, “Ninety percent of the online estate planning documents I see don’t do what the people think they’re going to do. I’ve seen people use online documents, documents out of estate-planning books or documents borrowed from friends. But they screw up their estate plan because they don’t understand the legal and technical aspects of the documents.”

Hamill told AARP that she knows of one client who signed a deed transferring his house to a trust but hadn’t properly created the trust. Thus, the deed had no effect. Another client’s confusion over the term “beneficiary” resulted in the immediate transfer of all his property to his children and required him to pay them an annual income, leaving his wife in the cold.

So even though you can do it yourself, err on the safe side and contact a professional like Jeffrey Weinstein 212-693-3737 for a free consultation.

Most Americans don’t keep track of their online assets like Paypal, Facebook, and merchant loyalty reward programs and chances are will forget to include them in their estate plans. By neglecting these things a it can cause hassles for beneficiaries, powers of attorney and executors.

One group of things that people tend not to think of are reward programs like frequent flyer miles. For example, Anthony Bourdain left his unused frequent flyer miles to his estranged wife and they were substantial. We suggest you write down all your digital assets including logins and passwords and store them when only someone you trust knows where they are.

If you find it all too daunting there are businesses popping up that will do it for you. One business is out of Durham, North Carolina called Back Up Your Life which their site says

We help you organize your life’s documents, details, and contingency plans. If you’re ready to be ready, let’s back up your life.

Then there are digital estate services, such as Everplans, which helps her clients by providing a digital archive of everything your loved ones need if you die or get into an accident and can’t communicate.

Among the things Everplans takes care of:

• Wills, Trusts, and insurance policies
• Important accounts and passwords
• Info about your home: bills, vendors, etc.
• Health and medical information
• Advance Directives and DNRs
• Final wishes and funeral preferences

There are a few instances where it would do you well to consult with an estate planning lawyer, like Jeffrey Weinstein Esq.or a health care professional.

Terms such as “artificial nutrition and hydration,” “persistent vegetative state,” and “incapacity” in the forms may leave you confused. A health care professional or lawyer can explain the terms you don’t understand and can answer any questions about how your documents work. Many hospitals and other health care facilities have representatives who can explain the basics of your state’s health care forms and help you complete them.

You might be worried that family members may not agree with your health care wishes or may even fight about your medical treatment. This is where a good estate planning lawyer can ease your concerns by making sure your wishes are clearly expressed. The lawyer can also double check your forms to be sure they are properly finalized and legally sound.

A qualified lawyer can also help you make health care documents as part of a comprehensive estate plan, including a will, living trust, or other documents you may need. While it’s usually possible to accomplish these tasks on your own, it much easier to put the job into a lawyer’s hands. If it’s a question of hiring a lawyer versus putting off doing it yourself, don’t procrastinate. Take steps to make these essential documents or get the help you need.

One person caught up in this mess is homeless millionaire Alan Fantin. That’s right, a homeless millionaire. Fantin has a net worth in the millions but he has had trouble getting accessing it for years. He has been under a conservatorship that was created thirty years ago after a car accident left him with a severe head injury and partial paralysis.

He owns a house which is mostly paid off. But right now it’s ridden with black mold and there are squatters in the basement who don’t pay rent and won’t leave. And Fantin hasn’t been allowed near the house since he was arrested last month and charged with assaulting his live-in girlfriend. His pre-trial monitoring says he can’t come within one-mile of his alleged victim’s residence, which is also his home, or it it was.

On top of all that he is currently engaged in a legal tussle with the guy who controls his funds, a court-appointed conservator named Scott Christian. Christian was appointed in early 2015. Since then the two have battled constantly over financial matters, ranging from the amount of Fantin’s cable bills to his marijuana use. Christian has described Fantin’s weed smoking as a “substance abuse habit.”

Fantin has had a license to use marijuana for medical purposes since 2001.

In a report in Westword, Fantin says the weed helps him with the seizures he’s bee experiencing since his accident. “When I run out of pot, my seizures are more aggressive and they tend to last longer.”

Westword also reports

…Christian refused to provide any funds for his lodging after he was banned from his house; directed him to use a public defender in his domestic-violence case rather than hire his own attorney; threatened to cut off his phone if he continued to complain; and has been less and less responsive to Fantin’s pleas for help even as his firm’s fees for the conservatorship have steadily increased.

The case offers a rare glimpse behind the closed doors of probate court, where a professional cadre of attorneys, care managers, estate administrators and others are entrusted with guarding the interests and funds of some of society’s most vulnerable people. In many instances, they may be doing just that, protecting the elderly, the sick, the mentally or physically disabled from unscrupulous relatives or neighbors — and sometimes protecting them from themselves.

It’s a fascinating story which we suggest you read. Homeless Millionaire Alan Fantin Wants His Day in Probate Court

New York doesn’t charge inheritance tax, but the estate tax comes with one big provision. Though December 31st of this year there is a $5.5 million exemption which means if the value of the estate is less than $5.5 million, the estate tax is waived.

That tax is in addition to the federal estate tax that hits individual estates worth more than $11,180,000 between gross assets and prior taxable gifts to pay within nine months of the individual’s death. You can get a six-month extension. But chances are you don’t have an estate worth $11 million. Only a few thousand people do.

New York estate property categories

There are only two categories in New York: personal property and real property, Real property is what you probably think it is; land and houses. Personal property is everything else. New York is not a community property state so the surviving spouse doesn’t automatically inherit the deceased’s property.

It does, however have what they call a spousal right of election when deciding on inheritances for spouses. This law states that should a spouse pass away, his or her spouse will receive an “elective share” of $50,000 or one-third of the decedent’s estate. Should a spouse not receive this elective share, he or she has the right to file for it as long as it’s within a six-month window after an executor for the estate has been named.

Importance of a will

If you die with a will in New York things are normally pretty straight forward, but it will still need to go through probate and people can challenge the will. There are ways to avoid probate and the Law Offices of Jeffrey Weinstein can help you avoid probate.

The State entitles surviving spouses who have disinherited them to a piece of their estate. But this is limited to non-probate assets, such as property held in joint tenancy or a jointly held brokerage account paid on death to beneficiaries.

Dying without a will

An administration proceeding is the most common legal event that occurs in New York if you die without a valid will, but you own property. If when you pass away you don’t have a will, your estate consists of either jointly-owned or no real property, and your personal property is worth less than $30,000, you must file as a small estate.

Without a will, if you only own real property, it goes to your nearest relative.

There are other issues involve in estate planning and the law offices of Jeffrey Weinstein (212) 693-3737 can help you navigate the process to lessen the hassle for you and your heirs.

Today, funerals are becoming the way for the rich to flaunt their wealth. Along with lavish weddings and over-the-top birthday parties, funerals have become a way for the rich to flaunt their wealth one last time.

William Villanova, general manager of Frank E. Campbell Funeral Chapel, New York’s “undertaker to the stars.” told “Accounting Today, “Whatever we can do that is legal, lawful and in keeping with the integrity of our profession, we will do.”

CEO Nigel Lymn Rose of the U.K.-based A.W. Lymn funeral home said, custom-made Rolls-Royce Phantom VII hearses and a fleet of 25 matching Rolls-Royce sedans are sought-after internationally.

He also told Accounting Today, “I get inquiries from people who have always driven Rolls-Royce’s and want their final journey to be in a Rolls-Royce. They “want to make a statement: Ride it in life, ride it in death.”

Accounting Today also told of the recent funeral of a fashion designer they did not name, where they assembled 120 gospel singers who performed as the casket was carried from the hall. A marching band performed at one service, and Lincoln Center’s Alice Tully Hall was covered in blue hydrangeas to mirror the deceased’s Hamptons home.

Businessmen and billionaires are often aggressively competitive in life “and that doesn’t end when they think they’re going to die,” said Ted Klontz, a Nashville, Tennessee-based financial psychologist.

If you follow in her footsteps could mean your loved ones won’t receive the inheritance you intended; disbursements could be long-delayed; ugly family squabbles may ensue; and your estate might owe additional taxes and your financial life will become a public record. If you have a special needs child, he or she may wind up losing some government benefits.

Many Americans don’t have a will or a living trust. A 2017 survey by Caring.com found that only 4 in 10 adults do. The study noted 64 percent of Gen Xers and 42 percent of boomers don’t have a will. The top reason for not taking these easy estate-planning steps, according to survey respondents: they “hadn’t gotten around to it.”

Chances are you don’t have anywhere near Franklin’s reported $80 million. But the actual dollar value isn’t the point. It’s about making sure your loved ones receive what you want the way you want them to.

If you don’t have a will, your estate will wind up in probate court, which means it will become public for anyone to see.

In Franklin’s case, the feds will take a big bite, too. There’s a 40 percent estate tax on an estate’s assets over $11.18 million (the exception to this: money or assets left to charity). If Franklin’s estate truly is worth $80 million, the Internal Revenue Service will snag $27.5 million of that.

Get a will for Pete’s sake. You can do it online but your better off having a real attorney to make sure it is totally legal. If you don’t have a will, your estate will wind up in probate court, which means it will become public for anyone to see and create hassles for your loved ones.

Alicia Johnson, 48, argued that the biological father, 53 year-old Marcus Crumble, her first cousin, didn’t deserve a cent because he raped her when she was 15 and never helped financially with the son who was born as a result of that rape.

Circuit Judge David Borowski agreed with her, writing,

“The Court has seen far too many absent fathers in this community. Out of wedlock births, where a ‘father’ both literally and figuratively abandons a child are a scourge.

“Under the tragic facts and circumstances of this case, including the fact that Mr. Crumble committed both statutory rape and incest, this Court will not allow a six-figure windfall to be awarded to Mr. Crumble.”

However, Crumble was awarded the amount he chipped in for the funeral. Crumble rekindled somewhat of a relationship with his son, Brandon Johnson, after he graduated college.

Borowski wrote, that anyone 18 years old could create a will and direct their estate not go to an abandoning parent. But noted that very few unmarried people without children under 30 actually create a will.

He wrote the equitable powers of the probate court allow him to find that allowing Crumble half of the settlement would amount to unjust enrichment.

Borowski ordered the estate’s special administrator to pay Crumble only the amount he spent for Brandon’s funeral, give half of the remaining $837,000 to Alicia Johnson, and keep the balance for 90 days, or longer if Crumble appeals.

So, no matter what your will says, the payouts from these products will go to the beneficiaries you designated when you filled out the forms, even if that was decades ago. That’s why it is important that you review beneficiaries regularly and choose contingent beneficiaries as backups, just in case. For example, you probably don’t want any of your estate to go to a former spouse so you need to make sure you update any documents that name them as a beneficiary.

For most people this should be enough, but for for those substantial assets it might be be best to set up a trust(s). By doing this you can exercise more control, minimize taxes and avoid potential challenges by heirs.

The best part of a trust is they don’t go through probate and are not public record, making the settling of an estate less complicated and less prone to legal challenges. Of course you will need to contact an attorney to decide what type of trust is best or you.

There are ways to deal with these conflicts to resolve differences without going to court. The best advice is for parents to do estate planning, which includes preparing a Last Will and perhaps a Trust document. Preparing a personal letter(s) to heirs explaining one’s intention prior to death is an excellent idea but rarely followed.

A Will challenge can be based on three things:

1. The will is defective on its face; the will may be missing essential elements.
2. Incapacity, the deceased did not have testamentary capacity to make a will.
3. Undue influence.

A valid Will must be witnessed by two disinterested parties. A challenge of incapacity must be based on medical records and medical conditions at the time the Will was executed. Undue influence is difficult to prove unless a new will was created in favor of a non-family member when the decedent was ill or infirm. When a conflict arises between siblings, a cross petition and or an objection to Probate/Administration may be filed. Extensive discovery proceeding may uncover clues to the decedent’s testamentary intentions.

In many cases, a resolution may be reached in a court supervised settlement conference. Our law office has extensive experience reaching out of court settlements, resolutions of disputes between once “close” family members.

Getting your estate plans in order doesn’t have to be complicated. Here are some common questions:

• If you wind up on life support, o you want to remain on it or have someone pull the plug?
• Who do you want to carry out your last wishes. Who will be your executor?
• How do you want your assets distributed?

Main documents

Power of Attorney for healthcare: Who will make decisions for yo if you can’t?

A living will; In some states this is called an advanced medical directive. This is for end-of-life decisions, like life support.

Beneficiaries

It is very common for people to forget to update their beneficiaries on various forms. This is most important if you’ve remarried. For example, chances are you don’t want to leave your 401(k) to your ex-spouse.

These are just a few of the things to remember when estate planning. Contact a credible estate professional who will be able to help you with the details and with anything we haven’t mentioned here.

First, a revocable living trust is a written agreement designating someone to be responsible for managing your property, It’s a living trust because it’s established while you’re still alive. It’s “revocable” because, as long as you’re compos mentis, you can change or dissolve the trust at any time for any reason. Usually, a living trust becomes irrevocable when you die.

The way it is usually set up is that you name you and your spouse would name yourselves as trustees so you can have control over your assets. You can do what you want with them.

What are the limits of a living trust?

A living trust can provide you with peace of mind knowing that your money and assets are safe in the scenario where you become unable to handle your own affairs. In certain cases it can eliminate the need or powers of attorney.

What it can’t do is protect itself from a disgruntled heir. Santa Monica attorney Jeff Condon told AARP, “A living trust can resolve some of the most common family conflicts that may arise in the inheritance arena.” However, a dissatisfied heir an still challenge the trust in court just like a will.

Who are the other trustees?

Well, we settled that the first two trustees will be you and your spouse. After th two of you you wlil need to nam sucessor trustees. Most likely, those would be you children. But if you don’t think your kids will do what you want, you can name anyone as a fiduciary professional such as bank department.

How do you fund the trust?

The good news is you don’t have to put any money into the trust when you set it up and pretty much there is no work involved. You can take assets out or a them without consulting you attorney.

Do you need an attorney top set up a trust?

While you don’t need an attorney to manage your trust. You do need one to set one up. We can regale you with horror stories about people who set up their own badly done trusts.

Is a revocable living trust right for me?

It may or may not be you need to weigh the advantages and disadvantages. For simple estates with few assets, it may not be since setting up a trust involves more money than a will. We suggest you consult with a competent financial adviser to help you decide.

In Notice 2018-61, the IRS and Treasury say they plan to release regulations to provide clarification on the effect of section 67(g) of the tax code on the deductibility of certain expenses described in section 67(b) and (e) that are incurred by estates and non-grantor trusts.

One way some wealthy peeople are getting around the new law is by setting up limited liability companies for their residences in high-tax states such as here in New York and then transferring interests in them to separate trusts set up in low-tax states like Alaska, where each trust can claim up to a $10,000 deduction for property taxes.

Four northeastern states have sued the govt over the new law as we wrote about here: 4 Northeastern states sue Trump administration.

Dishonest living trust salespeople prey on seniors’ fears that after their deaths, their life savings and assets will be stolen by the government or by predatory probate attorneys. These salespeople use high-pressure tactics and deceptive claims to coerce vulnerable seniors into buying a product that many of them don’t need.

Seniors may be bombarded with advertisements, phone calls, and pitches from door-todoor salespeople insisting that living trusts are the keys to eliminating problems in estate planning. This may be true for some. For others, buying a living trust is simply a waste of limited resources.

The Center also warns that seniors may be flummoxed by constant phone calls, direct mail ads and door-to-door salesmen insisting that seniors need to buy a living trust. For some people it’s a good idea, for other not so much. For some people a living trust might just be a waste of resources.

Senior citizens might also not be that well-versed in trusts an estate planning issues and may rely on the sales pitches of the scammers. Those folks can fall victim to predators like trust mill operators who use estate planning as a pretext to sell expensive and unsuitable insurance and other financial products to seniors.

Know Your Terms

What is a trust? A trust agreement is a document that spells out the rules that you want followed for property held in trust for your beneficiaries. Common objectives for trusts are to reduce the estate tax liability, to protect property in your estate, and to avoid probate.

Living Trust: A living trust is a legal document created by you (the grantor) during your lifetime. Just like a will, a living trust spells out exactly what your desires are with regard to your assets, your dependents, and your heirs. The big difference is that a will becomes effective only after you die and your will has been entered into probate. A living trust bypasses the costly and time-consuming process of probate, enabling your successor trustee (who fills basically the same role as an executor of a will) to carry out your instructions as documented in your living trust at your death, and also if you’re unable to manage your financial, healthcare, and legal affairs due to incapacity.

Will: Sometimes called a “last will and testament,” a will is a document that states your final wishes. It is read by a county court after your death, and the court makes sure that your final wishes are carried out.

Probate: Probate is a process for determining heirs, paying creditors, and distributing assets. You can’t avoid probate with a will. Any contractual asset (bound by contract) payable to the estate of the owner must go through probate court. Probate only applies to individual or jointly owned property. Learn how to avoid probate by visiting our main site, https://jlwlawoffices.com

What seniors need is expert advice on whether trusts are suitable for their estate and whether they would benefit from one. Our advice is to be wary of anyone who contacts you offering estate services.

Since the idea of no leaving a federal tax burden to their heirs, many people are questioning the need for estate planning since one of the main reasons to estate plan is to lessen the tax burden. But there is more to estate planning than tax issues.

Kiplinger.com has a very useful piece by Tracy Craig. Craig is a Fellow at the American College of Trust and Estate Counsel. She has some useful info on estate planning beyond taxes.

To read more click on the links below:

State Estate and Inheritance Taxes Exist for Many

Probate Can be Costly

Many Beneficiaries Have Issues

Blended Families are Common and Can Be Complicated

To read the details see Sudden deaths like those of Kate Spade and Anthony Bourdain can devastate family finances

Here is what they recommend:

Get organized and find an expert

Address your mental as well as your financial health

According to the IRS, collectibles includes works of art, rugs, antiques, any metal or gem (with exceptions), any stamp or coin (with exceptions), valuable alcoholic beverages or “any other tangible personal property that the IRS determines is a “collectible” under IRC Section 408(m)”.

Quite often people don’t have any idea how much their collections are worth which is why when you are doing your estate planning it is in your and your heirs interests to find out. If you plan on bequeathing your collectibles, it is a necessity.

If you own any antiques or other collectibles you should decide how you want to distribute them after you die. You can either donate them to charity or leave them to heirs. The problem is collectibles fall into special laws separate from other assets. That is why you need to appoint someone who knows the value of your collectibles. Experts say you should contact at least two dealers or auction houses that deal in your type(s) of collectibles. They will come in handy for whoever settles your estate. They will know how much your collection is worth which can prevent any fighting among heirs, each of whom may have a different idea of their worth.

By having this information it will also prevent a clueless heir from selling any objects for less than their fair market value. It is good to remember that even if your heirs decide to keep the assets rather than sell them, they will still need to know the value of your “objects” to establish the total value of your estate.

A good way to plan for your pets is to create a living revocable trust. That way you can leave instructions and money so your trustee can provide for your pet. In that tust you can also assign someone to take care of your pet, but you should make sure they are willing to take on the task.

If you don’t create a living trust, you can always leave what they call a letter of instruction to your loved ones. While the letter is not legally binding it does spell out your wishes as to the care of your beloved pet.

Another option is if you move into an assisted living facility. You can find one that allows pets.

It is a good thing to remember that although your pet might be like family to you, legally they are just property. That is why it behooves you to include your pets in your estate planning just as you would your humans.

Joan Antoniello, of Mazurs USA Wealth Advisors told Bloomberg News, ““For the mega wealthy, it’s really a window of opportunity that’s limited.”
Dynasty trusts let the richest Americans protect and preserve wealth for generations, while minimizing tax bills. Treasury Secretary Steven Mnuchin appears to have used one prior to assuming his government role. They can be funded tax-free with assets up to the exemption limit, which was $10.98 million in 2017 for couples, even though complex tax-planning techniques can get around that threshold.

Blloomberg reports that about a dozen of the nation’s top wealth planners say they’re seeing “increased interest in the trusts as clients look to capitalize on the additional $11 million they can now easily shift over. Some families want to transfer money out of their estates into the trusts in case Democrats take back control of Congress and pull the limits back down before 2025, while others say it’s best to move assets before they appreciate even more.”

Estimates are the new rules affect fewer than 2,000 families per year, but billions of dollars are at stake. A University of California, Berkeley study found that 0.1% of families control a growing share of U.S. wealth, from an estimated 7 percent in 1978 to 22 percent in 2012. The net worth of the wealthy has zoomed even higher in recent years as values of stocks, real estate and private businesses have climbed.

1. Do not make your special-needs child a beneficiary – naming them as a beneficiary in a will, retirement plan, insurance policy or other financial account may seem like the appropriate step to take, but it can have detrimental effects, including preventing the child from qualifying for federal benefits. Programs such as Medicaid and Supplemental Security Income (SSI) offer financial assistance to people with special-needs. However, to qualify for these programs, a special-needs person must have a limited amount of income and resources to their name. For example, to qualify for SSI, your child must have less than $2,000 in savings.
2. 529 ABLE Accounts – similar to 529 college-savings plans, these accounts will allow tax-free distributions if the dollars are used to pay for qualified expenses; including housing, employment training, assistive technology and personal support. ABLE accounts can hold up to $100,000 in assets without jeopardizing the beneficiary’s eligibility for federal benefits. Families can contribute up to the maximum gift exclusion each year, $15,000 for 2018. To qualify for an ABLE account, disability must have been occurred prior to your child’s 26th birthday.”

Read the full article: 4 Important Financial Planning Considerations If You Have A Child With Special Needs