New York Trusts & Estates

Will There Be an Estate Battle Over Anthony Bourdain’s Will? In White Plains, New York

If she decides to go that path, Bourdain’s estranged wife could exercise her right to her share of his estate.

Part of Anthony Bourdain’s charm was his unflinching honesty, but he may not have liked just how public all of his financial information has become. Among the details—he wasn’t as wealthy as some might have thought. Since he never finalized his divorce from Ottavia Busia-Bourdain, his estate plan might also be challenged, as reported in a recent article from Investment News, “Will of Anthony Bourdain could be open to legal dispute.”

Documents filed with the Manhattan Surrogate's Court say that Bourdain's estate was worth $1.21 million, the New York Daily News reported. This includes $425,000 in savings and cash, $35,000 in brokerage money, $250,000 in personal property and $500,000 in "intangible property, including royalties and residuals."

Bourdain was estimated to be worth as much as $16 million.

The will establishes a trust and designates Bourdain's 11-year-old daughter, Ariane Busia-Bourdain, as the primary beneficiary. The trust will distribute assets when she is 25 and 30, and she will receive access to the balance when she turns 35, according to a report in the USA Today. A guardian will be selected by the court to protect her inheritance, since Ariane is still a minor.

These types of trusts that pay out over time, are frequently created for young beneficiaries to make certain they aren’t overwhelmed by getting a big inheritance all at once. A trust with periodic disbursements allows her a better chance of being strategic with her money.

Bourdain named his estranged wife, Ottavia Busia-Bourdain, as his executor and left her "personal and household effects" including cars, furniture, books, and frequent flier miles. Reports say that he never finalized his divorce from Ottavia. As a result, she may be eligible for elective share of the assets, even if she was left out of the will. She could receive as much as a third of Mr. Bourdain's estate, if she elects.

French authorities ruled that Bourdain had committed suicide in a hotel room in France in early June. He was in France to film segments for “Parts Unknown,” his popular CNN show.

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Blueprint for Senior Singles in Yorktown Heights, New York

Singles need to be more proactive about planning for long-term care and estate planning to protect themselves against some of the inevitable issues of aging.

Not having a built-in support system of a spouse, children, in-laws, etc., can lead to challenges for singles as they age. About 35.4 million Americans lived alone in 2016, making up almost a third of all households, according to the U.S. Census Bureau, and about 20 million of them are 65 or older. For these aging singles, planning is key to being prepared for financial security and health issues, as reported by CNBC in “For aging singles, here's how to plan for your golden years,”

Saving as much as possible in a 401(k) plan or IRA while you can are important.  You should also make certain that you have emergency savings, if you're still working. If you’re still employed, find out if your company offers group insurance for long-term disability. Those policies provide a portion of your income, in case you end up unable to work due to an accident or other medical condition.

There are other ways for singles to protect themselves, as they age.

In addition to an estate plan with a will, select someone to handle your finances, if you reach a point where you can’t. When you give someone durable power of attorney for your finances, he or she will be  responsible for paying your bills with your money.  It is, therefore, important to choose someone you trust.  You should also grant someone durable power of attorney for health care. That lets the individual make important health-care decisions, if you can’t. That is different from a living will. That document states your wishes, if you’re on life support or suffer from a terminal condition. This helps instruct your proxy’s decision-making. If you have no one named, your healthcare providers must follow your wishes in that document.

If you’re single and don’t have family close by who can assist, if you need help with daily living activities, you'll need to plan for how to pay for it. A person turning age 65 today has nearly a 70% chance of needing such long-term care in their remaining years, according to the Department of Health and Human Services. On average, women need care longer (3.7 years) than men (2.2 years).

You also need to understand that Medicare (which you generally sign up for when you’re 65) doesn’t pay for long-term care. It can be expensive. If you have no family to rely on, and you don’t want to spend down your assets, but you’re above the income threshold to qualify for Medicaid, long-term care insurance can be an option. LTC insurance will pay a daily amount, up to a predetermined dollar limit and length of time, for services. Policies can be expensive, costing up to $2,000 a year for younger applicants (in their 50s) and double that for those over age 65. As with all age and health related insurance, the younger you are when you look into it, the better.

Here's a critical point: if you have a medical emergency and you live alone, you could be at risk. There are many different ways to solve this problem, among them, a medical alert system or a tag team of peers who check on each other daily.

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Britain’s Favorite Entertainer’s Estate Plan Leaves His Kids Out of his Will in Yorktown Heights, New York

Will Bruce Forsyth still be as beloved, now that the public knows he did not leave any of his millions of dollars to his children? Or do they recognize a tax strategy that’s well known in the United Kingdom?

The widow of one of England’s legendary entertainers, Bruce Forsyth, has inherited his entire fortune—a whopping $15.4 million. Starts at 60’s recent article, “Millionaire performer Sir Bruce Forsyth leaves kids nothing in will,” says that his children didn’t inherit a single dime of his estate.

According to The Daily Mail report, it was Forsyth’s strategy to avoid estate tax. In the United Kingdom, money that’s passed from a husband to a widow isn’t subject to inheritance tax. However, an inheritance from a parent to a child is taxed.

In addition to the money left for his wife, the entertainer left about $130,000 in a trust fund to split between his nine grandchildren when they turn 21 and roughly $26,000 to the two executors of his estate.

Nothing was left to daughters Debbie, Laura, and Julie, who Forsyth fathered in his first marriage to Penny Calvert. His daughters Louisa and Charlotte from his second marriage to Anthea Redfern also weren’t included in the will. Likewise, his son Jonathan from his third marriage won’t inherit anything.

Forsyth died last year with his six children by his side at age 89. The star had been sick for an extended period of time and had been admitted to hospital earlier in the year with a severe chest infection.

Bruce Forsyth had a record-breaking 78-year career in British film and television. He made his first TV appearance at the age of 11, taking up tap dancing after being inspired by a Fred Astaire film.

Forsyth received a knighthood in 2011. His last appearance on TV was at Christmas 2015, when he sent a festive message to fans.

Social media was flooded with tributes to Forsyth upon his death last year. The London Palladium promised to dim its lights, celebrities shared their memories of working with the entertainer and fans wrote of their experiences they had had with him.

Whether tax strategy or not, Forsyth is now one of many wealthy celebrities who have made the decision not to leave their children with their fortunes. Bill Gates, Simon Cowell, Elton John and Gordon Ramsay are among the bold-face names who have other plans for their millions.

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No Succession Plan Often Means Businesses Live and Die with Owners in White Plains, New York

To make it past the first generation, family owned businesses need a lot of communication and planning for succession.

The challenge is clear: less than a third of all family owned businesses will survive to the second generation. By the third generation, prospects for survival are even worse—only one in 10 will make it. With approximately 80-90% of American businesses being owned by families, the potential for business longevity is not great.  However, it can be addressed.

KRCU’s recent article, “Business Succession Planning is Very Important,” reminds us that business succession planning is a process in which business owners research and consider a strategy to move forward in the event of death, illness, or simply transition.

Business succession planning implements several estate planning strategies. There is no “one size fits all” plan. A business owner should carefully consider his or her options. Without a plan in place, there’s a good chance for failure.

There are several factors to be examined. There are questions like estate taxes, liquidity, ownership percentages, family disagreements and the management capabilities of those relevant individuals.

The uncertainty of a transition can impact the business internally among staff and externally with customers. As a result, it’s vitally important to create a business succession plan and communicate that plan to your team and family.

There are many succession planning vehicles and succession planning concerns. Seek the advice of an expert on these matters and do it sooner rather than later. Work with an experienced estate planning attorney, who can walk you through the issues that must be addressed.

Many experts think that business succession planning is at least as important (and maybe more important) than individual estate planning.

Improving the chances that a family owned business will continue past the first generation, takes as much work as building it did in the first place. A seamless transition to the next generation is a worthwhile task, benefiting customers, employees and the community, as well as family members.

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Wait, Social Security Benefits are Taxed? in Yorktown Heights, New York

How much of your Social Security benefits are taxable depends on several factors. You’ll need the bigger picture of your retirement income to know how much of a hit you can expect.

Depending on the amount of other income and Social Security benefits, those benefits are included with other taxable income. It could be 85%, 50%, or zero. There are steps you can take to reduce your tax exposure.  However, it takes planning and knowing the formulas.

Investopedia’s article, “How to Avoid the Social Security Tax Trap,” explains what’s includable in Social Security income and what’s taxed.

To know if your Social Security benefits will be partially taxed or fully tax-free, you need to use these formulas. Add up your gross income with certain adjustments. This is the amount from line 21 of Form 1040. Then add back any excluded income from interest on U.S. savings bonds used for higher education purposes, employer-provided adoption benefits, foreign earned income or foreign housing and income earned by residents of American Samoa or Puerto Rico.

To see if 50% of your Social Security benefits are taxed, review the amount listed on Form SSA-1099, Social Security Benefit Statement, which is sent to you by the Social Security Administration by the end of January following the year in which benefits were paid. For income tax purposes, the benefits are the gross amount listed in Box 3, not the net amount you actually received after premiums for Medicare were withheld.

All tax-exempt interest is interest from municipal bonds listed on line 8a of Form 1040.

Look at the results compared to a “base amount” fixed for your filing status. If you’re below this amount, then none of your benefits are taxed:

• $32,000 if married filing jointly; or
• $25,000 if single, head of household, qualifying widow(er) and married filing separately, where spouses lived apart for the entire year.

If the income mix you figured earlier is equal to or above this base amount, then see if 50% or 85% of benefits is includible. For married persons filing jointly, 50% is includible for income between $32,000 and $44,000, and 85% is includible, if income is more than $44,000.

For singles, head of household, qualifying widow(er) and married filing separately, where spouses lived apart for the entire year, 50% is includible of income, if between $25,000 and $34,000, and 85% of benefits is includible, if income is above $34,000. For a married person filing separately who did not live apart from their spouse for the full year, 85% of benefits are includible.

There are also some special situations. The usual computation isn’t used if you:

• Made deductible IRA contributions and you or your spouse were covered by a qualified retirement plan through your job or self-employment. (Instead, use the worksheet in IRS Publication 590-A);
• Repaid any Social Security benefits during the year (see in IRS Publication 915); or
• Received benefits this year for an earlier year (You can make a lump-sum election that will reduce the taxable amount for this year. Use worksheets in IRS Publication 915).

Since 85% of benefits are includible, once you exceed the $44,000/$34,000 income threshold, it may be wise to defer income to a particular year. Say that you know your income is going to be above this threshold and you’re planning on converting a traditional IRA to a Roth IRA. You could make the conversion in this year and pay the taxes on it. This won’t result in any additional inclusion of Social Security benefits. As a result, in the future, you won’t have to take required minimum distributions (RMDs) because you have a Roth IRA, not a traditional one. This will keep your income lower in future years than it would have been without the conversion.

Remember that your federal income tax isn’t the only tax to worry about. Thirteen states tax Social Security benefits. However, 37 states don’t (either because they have no state income tax or fully exempt Social Security benefits).

Among the 13 states, seven of them (Connecticut, Kansas, Missouri, Nebraska, New Mexico, Rhode Island, and Utah) have high-income thresholds for taxing benefits. So, even if you’re a resident, your benefits may not actually be taxed.

 However, if you live in Minnesota, North Dakota, Vermont, or West Virginia—and your benefits are taxable for federal income tax purposes—they’re automatically taxable for state income tax purposes. This is because these states use the federal determination. Remember this, if you’re thinking of relocating in retirement.

You’ll want to gather up all your retirement income information and estate planning documents to see what can be done to reduce Social Security tax exposure. Your estate planning attorney should be able to help guide you through the process.

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Why Do I Need an Ethical Will? In White Plains, New York

If you want to be remembered as the person who made sure your heirs had all the information they needed about what you wanted, for funeral arrangements as well as what to do with Great Aunt Joan’s diamond bracelet, you might want to consider writing an ethical will.

An inheritance is often more than just assets. Family heirlooms, art, treasures from global adventures and stories, are also things that families share. When you prepare an ethical will, sometimes known as a “living letter” or a “legacy letter,” you give your children the ability to know what you want them to do with your belongings, and why.

Investment News’ recent article, “Advisers use ethical wills to look beyond client assets,” says that a legacy letter helps the writer explain to younger generations his or her reasons for setting up the will in a certain way and what they hope to accomplish through the estate plan. In writing the letter, the donor is also adding to the probability that his or her wishes will be followed.

Some don’t like the term ethical will and prefer to call it a legacy letter.  However, the purpose is the same. Regardless of what it's called, the ethical will is simply a letter.

It’s not a binding legal document.  It is often written to accompany a formal will.

An ethical will can help uncover character assets and the values that a person holds dear. It can explain that what they have to pass on to loved ones, can be much more valuable than finances.

Even if the letters are directions about assets, they will by their very nature be personal, and your way to send a final message to those you love. You want to share your goals for your estate, and likely, your hopes and dreams for your family when you are gone.

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Lawsuit Filed by Buzz Aldrin Against Children and Former Business Manager in Yorktown Heights, New York

One of the heroes of American’s Apollo space program is now engaged in a lawsuit against his own children, while his children have filed a petition saying he is suffering from dementia.

This is not how we think the storybook life of Buzz Aldrin should be remembered. Aldrin, a legendary American astronaut and the second man to walk on the moon, has sued his adult children, saying that they are slandering him by saying he has dementia. The two adult children have asked a judge to name them as his legal guardians, as reported in a recent article from Stuff, “Buzz Aldrin sues children, alleging misuse of his finances.”

The children said Buzz was associating with new friends, who were trying to alienate him from his family and that he had been spending his assets at "an alarming rate.'' They filed a petition claiming their father was suffering from memory loss, delusions, paranoia and confusion.

The 88-year-old Aldrin underwent his own mental evaluation that was conducted by a geriatric psychiatrist at UCLA last April. The doctor said Aldrin scored "superior to normal'' for his age on tests.

"I also believe that he is perfectly capable of providing for his physical health needs, food, clothing and shelter and is substantially able to manage his finances and resist fraud and undue influence,'' said Dr. James Spar in a letter to Aldrin's attorney.

Aldrin asked a judge to remove Andrew from control of his financial affairs, social media accounts and several nonprofit and business enterprises. Andrew was a trustee of his father's trust. Buzz said in the complaint that despite revoking the power of attorney he had given his son, Andrew continued making financial decisions for him.

"Specifically, defendant Andrew Aldrin, as trustee, does not inform plaintiff of pending or future business transactions, removes large sums of monies from plaintiff’s accounts and continues to represent plaintiff in business and social capacities, despite plaintiff's repeated requests for such representations to be terminated,'' the lawsuit said.

In his complaint, Aldrin accused Janice of not acting in his financial interests and conspiracy. Buzz also accused his former manager, Christina Korp, of fraud, exploitation of the elderly and unjust enrichment. Several businesses and foundations operated by the family are also named in the lawsuit.

This past June, Aldrin was at the White House when President Trump announced that he wanted the Pentagon to create the “Space Force” as a new military branch. Aldrin was a member of the Apollo 11 crew that landed the first two people ever to walk on the moon.

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The Unexpected Threat to Estate Planning in Yorktown Heights, New York

 

Neglecting to plan for family dynamics can destroy the best estate plans. Make sure to address both difficult personalities and tax liabilities. They can be equally problematic.

Saving loved ones from a large tax bill and maximizing the transfer of wealth across generations is great, but your estate plan needs to do more than that. The plan must consider the dynamics of your family, how they may treat each other after you pass and what can be done to protect them from each other.

CNBC’s recent article, “This threat could devour thousands of dollars from your estate,” notes that even families that look like they're perfect, are not. Perfection doesn't exist. When families fail to address these types of issues in their estate plans, it can create conflict between beneficiaries.

Here are some ways your estate plan can drive a wedge between your family members, and how you can avoid that kind of trouble.

Blended families, typically couples with children from prior marriages, need some special attention during the estate planning process, to make certain the assets go to the right heirs and that nobody is accidentally disinherited.

Things are a little more complex for fractured families. That is when the children and parents are estranged. Even when the estrangements are long-standing, sometimes there's an expectation that a child will inherit from the parents.

In some cases, younger adults should know a little about money management. If they have trouble with money, ask your estate planning attorney about trust options. If a child isn’t very diplomatic or sensible, he or she may not be the best person to name as trustee. It’s common for a parent to pick family members, but they rarely have a sound rationale for doing so. An independent trustee such as a bank, an attorney or an accountant acting as a fiduciary can be a good solution. This is an independent third party that can lessen family fighting.

Be upfront and candid with your estate planning attorney. They have seen and heard all kinds of scenarios and will have useful input on how to handle a volatile situation. In some families, talking about the potential conflicts in advance can be helpful, while in others it can lead to drama. Consider working with a counselor, if the problem seems unsolvable. Getting everyone in the family closer to a healthy relationship while you are still alive, may be the best legacy you can leave your loved ones.

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Elder Abuse Training for Kansas Law Enforcement and Community in White Plains, New York

The goal is to have more people aware of what elder abuse is and what to do when they see it. The more people who can act, from police to community members, the better.

Under the leadership of Kansas Attorney General Derek Schmidt, a new initiative is being launched that will train law enforcement, social workers and community members to better recognize financial elder abuse.

WIBW reported in its article, “Kansas training law enforcement, community members to spot elder abuse, AG says,” that the announcement came on World Elder Abuse Awareness Day, which is  observed on June 15 every year.

Schmidt’s Senior Consumer Protection Advisory Council has worked over the past several months to create a training program that can be used to train law enforcement officers, as well as community members, on how to identify potential cases of financial abuse, especially those targeting senior citizens.

“We’re part of a generational discussion now in Kansas and around the country as the Baby Boomers retire,” said Schmidt. “If we’re going to be where we need to be, as those numbers of senior citizens continue to grow, it’s going to take more than episodic events. It’s going to require us to build widespread understanding among people who deal with seniors and who deal with the criminal justice system.”

The training programs in Kansas include victim interaction; investigating physical, sexual, and financial crimes; legal issues; consent, cognition and capacity; and general information and resources. Some of the topics are directed primarily to law enforcement personnel, while others have useful information for general audiences.

The AG noted that there are more people over 65 and more people over 80 than ever before in the history of both the U.S. and Kansas. He said those numbers are going to increase steadily for the foreseeable future. Meanwhile, as a group, these seniors will have more wealth than ever before in any demographic group in the history of the world.

About 54 law enforcement officers have already received training at two programs presented in Topeka and Shawnee. Law enforcement officers across the state will have access to online training, through a partnership with the Kansas Law Enforcement Training Center.

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Teach Your Children Early About Retirement Planning in Yorktown Heights, New York

Most young adults are not thinking about retirement when they get their first jobs, but starting early, even if on a very small scale, can make a big difference.

When you are working to pay off student loans and trying to save enough to get a place of your own, retirement takes a backseat, says The Milwaukee Community Journal, “How parents can help their kids with retirement.” About 66% of millennials haven’t set aside any money for retirement, according to a report from the National Institute on Retirement Security. However, parents can counsel their young adult children on how and why to start a retirement plan now, before it gets to be an issue. Many workers early in their careers think retirement isn’t worth considering because it’s so far off, and they have other obligations. But getting a late start is a big mistake, because they’re missing out on years of compounding returns.

Here are five tips parents can give their young adult children to help them to begin planning for retirement:

Get Going. Explain the importance of starting retirement savings when the new job starts. Although their beginning salary is low, and they have bills, they need to make saving a disciplined habit. Start small.

Understand the Basics. Linking retirement planning’s importance to a new job gives a child the opportunity to get ahead financially and can instill pride in learning some retirement basics. Young workers should learn the purpose of target-date funds, which automatically adjust how a person’s money is invested, based on their age and how near they are to retirement.

Jump on the 401(K). With pensions all but gone, kids should understand this great way to save and the importance of a 401(k) company match.

Up Contributions Over Time. You should save between 10-15% of your pay for retirement. That is usually a lot for someone in their 20s, but you can work toward it by increasing your contribution by one or two percentage points every time you get a raise.

Stay on an Honest Budget. Help them learn to budget money with three categories: give, save, and spend.  This will help them to learn how rewarding it is to set a savings goal and to regularly put aside money to reach it. This is the basis for successful retirement investing.

It’s easier to understand the importance of saving for retirement, when it is around the corner. That makes parents the best candidates to talk with their children about getting an early start on retirement investing. It can also segue into a larger discussion about parental finances and estate planning. These are all important conversations.

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