Estate Planning News

    An estate plan is like a warm blanket on a cold night – protecting your loved ones and your assets. Winter sports such as skiing, snowboarding, ice skating, and ice hockey can be a fun and exciting way to spend these cold months. However, it is important to remember that these activities come with an element of risk. Accidents can happen, and it is important to be prepared in case the worst occurs. As the winter months approach, one way to protect yourself and your loved ones is by having an estate plan in place. An estate plan is a set of legal documents that outline how you want your assets to be managed and distributed after your death. Having an estate plan is essential for ensuring that your wishes are carried out and that your loved ones are taken care of after you are gone. There are...

    As we enter the time of year when the entertainment industry recognizes and celebrates the best in film, television, and music, it is a time of glamour and excitement as celebrities flock to the red carpet for their biggest award shows of the year. As many may not realize, there are many celebrities who have passed away without having an estate plan in place. One example is Prince, the iconic musician who died in 2016 at the age of 57. At the time of his death, Prince did not have a will or any other estate planning documents in place. As a result, the distribution of his $200 million estate was left in the hands of the courts. The probate process was long and complicated, and it took more than two years for his assets to be distributed according to Minnesota state law. The process was further complicated...

Fewer than one-third of family businesses survive into the second generation, while only 13 percent make it to the third generation. Here are some tips to beat the odds and help your business live on for generations to come. The sooner you start the planning process the better The sooner you start planning for succession, the smoother the transition is likely to be. Beginning the process five years in advance is good and 10 years is even better. In fact, many experts recommend having a succession plan built into the original business plan. Try to include family members in all discussions about succession Creating your succession plan on your own and then simply announcing it to the rest of the family is a recipe for disaster. By discussing your thoughts with other members of the family, you’ll get an idea of who wants to be part of future operations and...

Second marriages can present unique challenges when it comes to estate planning, particularly if you or your new spouse have children from previous marriages. Let’s take a look at some of the factors, tools, and strategies to consider when planning for a second marriage. Prenuptial Agreements You’ve been married before, so you’re a little bit older and a whole lot wiser the second (or third) time around. However, this doesn’t mean you should throw caution to the wind. While it is hardly the most romantic aspect of planning a life together, many couples should at least discuss a prenuptial agreement. This is especially true if any of the following scenarios apply: One of you is giving up a lucrative career to get married You or your future spouse owns a business Either of you has significant assets and wants to keep them separate from marital assets One of you carries...

For generations, the children in your family have learned to swim by jumping off of the dock of your family’s vacation home. It’s a rite of passage for each grandchild to learn how to bait a hook from grandpa while fireflies flicker in the summer heat. The legacy of a vacation home is the pinnacle of the American Dream. Many people work their entire lives to afford a home in their dream destination. While you dream of passing down this home (and the memories) for generations to come, have you thought of how to protect this family legacy? Leaving the family vacation home directly to your children may be the simplest way for transferring ownership, however, when multiple children are involved, they would all need to agree with how the property is managed and maintained in the future. These decisions are proven to be challenging not only for your children...

Turning 18 is a big deal, not just from a parent’s emotional perspective, but legally too. Eighteen is a magic birthday, a milestone into adulthood. At 18, your teen can vote, buy a house, or marry their high school sweetheart. They can also go to jail, get sued, and gamble away their college tuition in Vegas. In your eyes, your baby will always be “your baby,” no matter their age, but in the eyes of the law, that “baby” is legally an adult on their 18th birthday. In New York State, a child is entitled to be financially supported by his or her parents until the age of 21, unless married, self-supporting or in the military; as far as the law is concerned, he or she is an adult at age 18 and information regarding their health, finances, and education will not be disclosed to anyone without their written consent....

  A dementia diagnosis is a traumatic time for any family. Dementia happens slowly and progressively over time. In the early stages, some symptoms are often thought of as just signs of aging. Beginning signs can be as simple as losing car keys, forgetting where the car is parked, or even forgetting to turn off the oven. Unfortunately, dementia is incurable and progresses over time. It is important to have difficult conversations sooner than later. There are a few things you can do to protect your loved one during this challenging time. Gather Financial Documents There are several advantages to having all financial documents in one place during an early diagnosis of dementia. Dementia patients usually have difficulty remembering where they put things. It is important to not only put all financial documents in one place, but to also make copies and have them kept with a trusted member of...

Last time we looked at planning for blended families in general terms. Now let’s discuss some specific trusts that you might want to consider. One such trust, which provides an excellent form of asset protection, is called a Qualified Terminable Interest Property Trust (QTIP). The QTIP trust can generate income for the benefit of the surviving spouse during his or her lifetime. When the surviving spouse passes away, the QTIP’s assets can be distributed between mutual and prior children according to the wishes of the previously deceased spouse. In addition, if the children from the previous marriage are young, assets from the QTIP Trust can be held in another trust for the children, under the control of an independent trustee. This can prevent the assets from falling under an ex-spouse’s control. You might also want to consider a Long-Term Discretionary Trust (LTD Trust) to administer your children’s inheritance, with a...

Planning for blended families can present unique challenges, in part because the interests of a current spouse and any mutual children often conflict with the desire to provide for one’s children from a previous marriage. For example, if all of an estate’s assets are left to the new spouse, the children from a previous marriage may not be provided for in the manner the deceased spouse would have wanted. After all, there is no legal obligation to support stepchildren. Furthermore, the surviving spouse might, upon his or her death, leave all of the assets to his or her children, thereby excluding the children of the spouse who passed away first. Similarly, if assets are left only to prior children at the death of their parent, there may not be enough assets remaining in the estate to provide for the current spouse or family. Even with a harmonious blended family, failure...

It goes without saying that you and your child’s other parent should name the same guardian for your children. But what if you are divorced, or for whatever reason you and your spouse cannot agree on the most suitable guardian? Naming different guardians will lead to a battle in court should you and the children’s other parent pass away while your children are still minors. The decision over guardianship will then be in the judge’s hands. Part of the solution this situation is to leave a Letter of Explanation outlining your reasons for choice of guardian. It is important to have an experienced attorney assist you in the drafting of such a letter, but here are the basics of what should bet included: Who the children would prefer, that is, the relationship between the children and the prospective guardian Why your choice of guardian will best meet the children’s needs,...