New York Trusts & Estates

Whitney Houston’s Daughter’s Boyfriend is Already Facing Estate Plan Troubles - in Yorktown Heights, New York

Nick Gordon may feel like he has a target on his back and with good reason.  The boyfriend of Bobbi Kristina Brown, daughter to the world-class performer Whitney Houston, will never see the 22-year-old again. Tragically, Bobbi Kristina is being cared for in a Duluth, Ga., hospice after suffering major head trauma.  Gordon has been banned from visiting her, and is also being sued for millions by court-appointed conservator Bedelia Hargrove. According to the lawsuit, Gordon is alleged to have severely beaten Bobbi Kristina on the day she was found and leaving her alone after the beating.  She is unlikely to ever recover, having suffered extensive brain damage from the attack. To add theft to injury, Gordon is accused of stealing thousands from Bobbi’s bank account during the last five months.

 

The USA Today’s article titled, “Lawsuit start of big trouble for Nick Gordon,” asks “why is this guy being sued?”

 

It appears that his suspect reputation and lying are giving the family of Whitney Houston’s comatose daughter the idea of bringing an action against him in an effort to keep him from claiming a piece of Bobbi Kristina’s million dollar estate.

 

In the past, Nick Gordon has claimed that he was “informally” adopted by Whitney and that he’s also Bobbi Kristina's husband, which would make him a family member with legal rights.

 

Attorneys for the family say there is plenty of evidence to show that neither claim is true. Gordon has said nothing, including anything about what happened to Bobbi Kristina before she was found face down and unresponsive in her bathtub in January, similar to her mother's bathtub death three years ago.

 

The article reports that law enforcement officials in Georgia have not determined if they will bring charges against Gordon, but the case is still under investigation. Nonetheless, without any criminal charges, Bobbi Kristina's conservator is claiming in civil court that Gordon is a liar, a thief, a batterer—maybe even a killer. The conservator was appointed by a state family court to protect Bobbi Kristina's assets while she is incapacitated. The court papers claim that Gordon was at one point accused of making threats and was under a restraining order to stay away from Bobbi Kristina's relatives.

 

Bobbi Kristina is worth millions from the trust Whitney established for her in her will. However, the remainder of Whitney’s sizable estate goes to Bobbi when she turns 30. If Bobbi dies before that, Whitney’s will dictates that those millions revert to the Houston family. Although that scenario may set up a fight between the Houstons and Browns, both sides agree that Gordon should get nothing.

 

This is a proactive move, the article says, because the family is concerned that Gordon will claim he's entitled to some piece of her estate. But Bobby Brown said that Gordon was never married to Bobbi Kristina, and common-law marriage is not recognized in Georgia. Nonetheless, the family might just settle with him to make him go away. 

 

For more information on Estate Planning, Wills, Trusts, Probate, Trusts and Estates, Asset Protection, Probate Court, Inheritance, Estate Planning Lawyer, Probate Attorney, Conservatorship; please click to my webpage

Leaving an Inheritance? Tips from the Pros in Yorktown Heights, New York

Few people get excited about doing estate planning, even though they might recognize the importance of leaving a legacy for their children and grandchildren. If you want to be smart about making gifts to your loved ones, though, there are some things you should consider before just writing a check.

When leaving a legacy to your heirs, you want to do it the right way. It’s always best to consult with the pros on important estate planning matters.

A recent article from The Motley Fool, titled “Thinking of Gifting an Inheritance to Your Grandchildren? Keep These 3 Things in Mind,” asks some of their experts for estate planning tips. Here are some of their answers:

Set up a Trust. Who wants to see the grandkids squandering their inheritance on something foolish? Many of the younger ones don’t have the appropriate financial skills to properly manage money. This makes the thought of handing over a large sum of cash or stock a queasy idea. A 2012 study showed that 23% of millennials spend more than they earn, so you have a reason to not feel well about your heirs and your money.

The article suggests that you instead set up a trust, a wise move if you're planning to pass along a substantial amount of money and want to avoid any chance of probate. You can control how and when a certain amount of money can be distributed to your grandchildren. That way they won’t be overwhelmed. This also gives your kin time to mature and develop their financial know-how. That way they can handle the inheritance when they receive the money later on.

Know about Estate Taxes. If you’re planning to leave an inheritance to your grandkids, the article says that you should remember the estate tax. This tax will be applicable if your total estate is valued at more than $5.43 million (for 2015). If this applies to you, you could start giving the grandkids money while you're still alive. The IRS allows a $14,000 tax-free gift each year per person, and that works for both you and your spouse ($28,000). Speak with an estate planning attorney to review your estate planning and estate tax situation. Some planning will go a long way toward helping you know that you money will be given to your heirs when they are ready and will anticipate any tax issues.

For more information on Estate Planning, Wills, Trusts, Asset Protection, Estate Planning Lawyer, Tax Planning, Living Trust, Estate Tax, Family Trust; please click to my webpage

Forget the House - Who Gets Grandma's China? In Yorktown, New York

There is no magic formula or solution available for transferring personal property because each family and their possessions are different. However, the Extension program "Who Get's Grandma's Yellow Pie Plate?" suggests there are some factors for every family to consider whether planning for the transfer an individual's own personal property or working together to plan the transfer of items belonging to a family member.

While an estate plan is critical in dealing with titled property, there are few individuals who take the time to plan ahead regarding the items in their household.

An article recently published in the Hays (Kansas) Daily News, titled “Discussion might ease transfer of family heirlooms,” looks into this issue and offers some advice.

Personal belongings like holiday decorations, jewelry, stamp collections, furniture, photo albums, quilts or sports equipment are referred to as non-titled property—which means there's no legal document (such as a title) to indicate who owns the item.

As the original article states—and you can imagine that this is the case most of the time—the decisions about non-titled property are not often made during ideal circumstances. Many times these decisions are made in times of transition, like remarriage, the downsizing of the family home, or during a family crisis like a death or moving an elderly family member to a health care facility.

This whole decision-making process is more challenging and sensitive when family members are emotional and focusing on these other events. While not easy, the original article says decisions about the transfer of personal property have the potential to be a time to reminisce, share memories, or work together through the grieving process.

Unfortunately, there's no magic formula or solution available for transferring personal property, as every family and their possessions are different. However, you should bear in mind some critical factors, to include:  

• Understanding the sensitivity of the issue for both owner and heirs.
• Determining what you want to accomplish in the transfer process.
• Deciding what's "fair" in your family.
• Recognizing that belongings have different meanings for different people.
• Exploring distribution options and consequences.
• Agreeing to manage conflicts if they arise.

Property owners have the legal right to decide when and how to transfer their non-titled property. When this is before death, it allows the owner to consider the wishes of recipients and enjoy the gifting process. If this is done after a death, there's a chance that the disbursal might not reflect the wishes of the owner. When you add to this emotions and an individual's sense of entitlement, then it's hard to know in these circumstances what's "fair." This can be the source of real conflict. Disputes about an inheritance might cause siblings to break off relationships with each other.

Transferring non-titled personal property takes time, as well as physical and emotional energy. This holiday season might be a good time to begin conversations about family belongings.

More open and honest communication among the people involved is always a good thing and can make these arrangements smoother with less conflict.

For more information about Estate Planning, Wills, Guardianship, Probate, Trusts and Estates, Probate Court, Inheritance, Estate Planning Lawyer, Probate Attorney; click to my website http://www.parkertrustlaw.com/

Reference: The Hays (Kansas) Daily News (November 27, 2014) “Discussion might ease transfer of family heirlooms

Living Longer Can Affect One's Inheritance in New City, New York

Adult children have historically expected to inherit from their parents while in their 40s or 50s, yet now many aren’t doing so until their 70s or even 80s, as their parents live into their 90s or beyond.

When should you expect to receive your inheritance?

According to the Social Security Administration, a 65-year-old man now has a life expectancy of 84, and a 65-year-old woman about 87. These increases in longevity have created changes in financial planning—like retirement calculations and long-term care insurance costs. However, as a Barron's article titled "When Longevity Upends Trusts" notes, these numbers are just beginning to affect trusts and estates.

If you don’t think about this, it could create a lot of issues, the original article cautions. For example, there are some children who are still waiting for their inheritance at age 80! The conflict is between this generation’s expectation of inheritance and the older one’s financial needs later in life. Trusts created years ago in many instances didn’t plan for a 90-plus lifespan or the medical costs associated with it. In addition, another wrinkle (sorry!) are divorces and remarriages. These can result in a second spouse and children of the first spouse being close to the same age, and perhaps at odds over inheritances that may take even longer to pass to the children’s generation.

The original article also mentions a case in which the parent had an accident and the adult child, who was a beneficiary of his trust, called for paramedics, probably saving the parent’s life. The trust eventually terminated before the parent’s death, and several million dollars went into his estate and to the widow (who wasn’t the beneficiary’s mother!), creating some real hard feelings for him, as he had really developed an entitlement to the assets.

One way to address these longer life spans in creating a trust is to just give more outright while you’re alive, instead of gumming everything up in trusts for after you pass. With the annual gift exclusion at $14,000 per beneficiary, per spouse, a couple with three kids and five grandkids could give up to $224,000 a year tax-free.

Another approach suggested in the original article is to provide for staggered payout dates, since some trusts permit partial payouts when beneficiaries reach certain ages or other milestones. A nice thing about trusts is that they can be written to permit some flexibility.

Find out more about trusts by speaking with an experienced estate planning attorney.

For more information about Estate Planning, Trusts, Probate, Trusts and Estates, Asset Protection, Probate Court, Inheritance, Estate Planning Lawyer, Tax Planning, Probate Attorney, Estate Tax; click to my website http://www.parkertrustlaw.com/

Reference: Barron's (November 29, 2014) "When Longevity Upends Trusts"

Are These Books Worth Anything? In New City, New York

Managing an estate can be complicated and overwhelming, but libraries can often be sources of hidden value, and thus should not be ignored. There's always a chance that tucked away in that library are a few rare first editions or hard-to-find antique items. But if you're facing hundreds of volumes and you have little experience with books, where do you start?

Libraries and rare books may not be your idea of a good inheritance, but they can actually be hidden treasures if you do your research. A recent JD Supraarticle, titled “California Estate Planning: What to Do if You Inherit a Library,” warns against failing to value books that are left as part of an estate.

You never know if the library has tucked away an inscribed first edition of “For Whom the Bell Tolls” by Ernest Hemingway. That’s going for $8,500 on Ebay right now. Or maybe a signed J.D. Salinger “The Catcher in The Rye.” Asking price for this is only $55,000 these days. These rare first editions or hard-to-find antique items are out there. If you are left with the responsibility of sorting through a collection containing hundreds of volumes, and you have little experience with books, where do you start?

An experienced estate planning attorney should be able to help you. In addition, you can start be doing some of the preliminary research yourself. Websites such as www.Abebooks.com and www.AddALL.com are extremely detailed and gather data from numerous book sites. There is also the American Book Prices Current database (www.bookpricescurrent.com). This is a valuable tool that about every professional bookseller in North America knows and uses. This database shows you if a book has sold at auction in the past.

If you don’t have the time to catalog and research all those hundreds of book titles and ISBN numbers on a website or go through entire libraries by hand, consult an experienced rare book dealer. He or she can quickly identify rare or unusual items in your library and estimate their worth by taking into account the rarity of a book, its condition, and the book’s provenance (its ownership history).

According to the original article, most rare book dealers are happy to buy books and libraries, as some will want to make you an offer on the most valuable titles. So don’t discount a library collection bequeathed to you in an estate—Earnest or J.D. may be hiding in there somewhere.

For more information about Estate Planning, Wills, Trusts, Probate, Trusts and Estates, Asset Protection, Probate Court, Inheritance, Estate Planning Lawyer, Tax Planning, Probate Attorney, Rare Books; click to my website http://www.parkertrustlaw.com/

 

Reference: JD Supra (November 3, 2014) “California Estate Planning: What to Do if You Inherit a Library

Providing for Your Heirs, Regardless of Your Pocketbook Size in Yorktown, New York

“Regardless of how much wealth you have,” says Gregory Popera, a private wealth adviser with Bank of America Merrill Lynch, “having some type of estate plan and financial power of attorney are sort of the financial building blocks to make sure your assets go where you want them to go.”

Making sure your heirs are taken care of once you pass is an important goal of estate planning. And you don't have to be among the wealthy to create financial stability for your loved ones.

The Washington Post recently discussed practical strategies for financial security in an article titled "How to pass money on to your children."

Buy life insurance. Life insurance is designed to ensure that your family will be okay. However, some parents fail to calculate properly when they buy policies. As a result, their families can have a rough time with mortgage payments, college costs, food, and other expenses. You should estimate how much your children would need to cover those expenses until they reach adulthood. Many parents will be OK with estate taxes by naming their children as the beneficiaries of the policy, since the federal estate tax exemption is $5.34 million per taxpayer for 2014. On the other hand, those who are also leaving a separate estate approaching this $5.34 million limit for their children might save on federal estate taxes by putting the life insurance policy into an irrevocable life insurance trust, where the insurance proceeds would go into the trust and would not be counted as part of the parent’s estates. Another consideration is to designate each child as a “co-trustee” after reaching a certain age, so their inheritance held in a properly designed trust would also be beyond the reach of creditors and wouldn’t have to be split with a spouse if the child gets divorced.

Open a 529 account. In this type of savings account money grows tax free until you use it for college. Parents or grandparents can contribute up to $14,000 annually for each child ($28,000 a year per couple) before there’s any gift taxes imposed on the donor. Another great feature on these 529s is that they can be “front-loaded” for up to five years’ worth of contributions all at once (but that’s all you can contribute for the next five years).

Create a trust. Parents and grandparents with substantial assets may consider a trust. Some families may create a revocable living trust, which wouldn’t have to go through probate and could be changed or canceled at any time. Assets are owned by the trust, which is controlled by the creator until he or she died or becomes incapacitated. The trust would subsequently pass to a successor trustee—like a child or other loved one—who then can oversee the trust and use the funds to pay bills and later to disburse the money to family members or others.

Simplify. If your family members are all “singing from the same songbook” as far as saving and finances, consider designating one child to be responsible for dividing assets among the family. Another way to do this is to set up a joint tenancy with one child—he or she can use the money to cover bills while their parent is still alive and then would be tasked with splitting up the assets after the parent passes. This approach has many pitfalls and should only be used in unique circumstances and only after a full discussion with an estate planning attorney. On the other hand, an estate planning attorney may counsel you to consider what is called “a transfer on death deed”—this passes real estate to one child when the last surviving parent dies. This transfer leaves the parents in full control until both of their deaths. But it’s important to remember that both of these arrangements can put just one individual in control of the estate after the parent dies. This can be a potential powder keg and could cause fireworks in the family if that person decides not to share what’s inherited with the others, or has creditor problems, marital problems or dies before making things right. Some parents try to avoid this by naming all of their children in the tenancy or in the transfer of death deed, however, all of the kids would have to agree on how to treat the assets. If it’s likely there might be issues, one should put detailed instructions in a will or trust.

Your estate planning attorney can answer these questions and plot a strategy that works best for you and your family.

For more information on Estate Planning, Wills, Trusts, Probate, Trusts and Estates, Asset Protection, Probate Court, Inheritance, Estate Planning Lawyer, Will Changes, Probate Attorney, 529 Account, Estate Tax, IRA's, Irrevocable Life Insurance Trust, Revocable Living Trust; click to my website http://www.parkertrustlaw.com/

 

 

Reference: Washington Post (November 3, 2014) "How to pass money on to your children"

Suspicions Arise When Doctor Is Added to Will in Yorktown, New York

Donna Spears, a longtime friend of centenarian Helen Schlesinger, claims in her Manhattan civil suit that New York-Presbyterian physician Dr. Lawson Moyer has broken the law by both treating the 470 Park Ave. resident and appointing himself as her power of attorney.

Can you trust your doctor with your will?

A recent article in The New York Post, titled "Doctor wrote himself into 102-year-old patient's will: suit," tells the story of a lawsuit recently filed in New York. Helen Schlesinger is 102 years old and has assets worth millions of dollars. In 2003, she wrote a will leaving the bulk of her estate to her friend, Donna Spears, and an unnamed family member. Spears has filed a lawsuit against Dr. Lawson Moyer. She alleges that after he began caring for Schlesinger, Moyer rewrote her will. The new will allegedly gives Spears only $25,000. It also leaves $100,000 to Moyer with the remainder to be distributed to charities.

Beyond the headline-catching parts this is a very common scenario, if not the most common scenario, in disputes over estates.

It is often alleged that the caregiver of an elderly person has induced the elderly person to rewrite his or her estate plan in the caregiver's favor. Sometimes, that turns out to be exactly what happened. However, it is also not uncommon for an elderly person to want to rewrite his or her estate plan to leave money to a caregiver without any wrongdoing having been done. The issue is a difficult one for courts to sort out.

Anytime that you rewrite your estate plan, you should have the advice of an independent estate planning attorney. That will lessen the likelihood that someone will be able to dispute it successfully in the future. For more information about Estate Plan, Estate Planning, Will; click to my website http://www.parkertrustlaw.com/

 

 

Reference: New York Post (October 16, 2014) "Doctor wrote himself into 102-year-old patient's will: suit

Consider These Inheritance Planning Questions in New City, New York

Making decisions about the disposition of your assets can be an emotionally fraught and time-consuming process. Take small steps and seek expert guidance to realize your plans for the financial care of your families.

Who gets what when it comes to your estate? The process of distributing your assets is no easy task.

A recent Forbesarticle, titled "Estate Planning 101: Picking Your Heirs," provides some very useful instructions on basic estate planning. The article lists a series of questions that can help you organize your thoughts and prioritize your planning.

The questions include:

1. How do you feel about charities? Will you leave something now via trust or in your will?
2. Will you give each of your children an equal share of your estate, or will you divide it based on some other factors?
3. Do you plan to make some gifts or bequests now while you are still around? Are your assets significant enough to think about getting them out of your taxable estate now to reduce your heirs' estate and gift tax bill?
4. What are you going to do with gifts like artwork, jewelry or furniture? Do some of these have sentimental value to particular heirs?
5. How do you plan to tell your heirs about your wishes for your estate?

The original article asks several more questions worthy of reading. It also notes that while you may control what and how you give, you are not able to dictate the recipients' reactions, how they will use those assets, or how they will treat each other.

Answering these tough questions regarding the disposition of your assets can be stressful. Take it slow and get some help. Read through the article and speak to an experienced estate planning attorney.

For more information about   : Estate Planning, Wills, Trusts, Guardianship, Probate, Trusts and Estates, Asset Protection, Probate Court, Inheritance, Estate Planning Lawyer, Power of Attorney, Tax Planning, Will Changes, Probate Attorney, Living Trust Attorney, Living Trust, Estate Tax, Family Trust, IRA's ;click to my website http://www.parkertrustlaw.com/

Reference: Forbes (September 24, 2014) "Estate Planning 101: Picking Your Heirs"

Leaving an Inheritance vs. Giving to Charity in Yorktown, New York

Is inherited wealth making a comeback? 

Is leaving an inheritance a good or bad idea? Well, it all depends on who you ask. For example, a recently published book by French economist Thomas Piketty, “Capital in the Twenty-First Century,” argues that estates are getting larger and eventually most of the money in the world will be tied up in huge estates. The argument is that this is bad. Why? Because the wealthiest people will have done nothing to earn the wealth themselves and much of the money will never be spent. Consequently, the money will just accumulate in estates and remain outside the greater economy.

Not all economists see this as a necessarily bad thing. In a recent article in The New York Times titled “How Inherited Wealth Helps the Economy,” Harvard Professor N. Gregory Mankiw explains how those who save their money and leave an estate to their heirs actually induce a redistribution of wealth from the owners of capital to workers. He states, “Because capital is subject to diminishing returns, an increase in its supply causes each unit of capital to earn less. And because increased capital raises labor productivity, workers enjoy higher wages.”

Of course, many people for personal or political reasons do not want to leave everything to their families. There is not necessarily a right answer. No one should feel guilty for what he or she wants to do with his or her own wealth. Whether you want to give everything to charity or leave it to your family, you can get an estate plan that does exactly what you want. 

For more information on Estate Plan, Wealth, Charity, or Heirs, click to my website.

Reference: New York Times (June 21, 2014) “How Inherited Wealth Helps the Economy”

Inherited Stock and Taxes - What You Need to Know in New City, New York

If you sell stock you inherited, the tax bill is keyed to its value at the time of the original owner’s death.

If you’ve just inherited stock or if you’re set to leave behind stock to your heirs, then it is well worth your time to get an idea of the tax treatment you will get and what it can mean in the context of your overall estate plan.

There a volumes to read on the topic of inherited stock, but thankfully Kiplinger posted a handy little note and Q&A on the topic last month with “The Tax Hit on Inherited Stock.” Essentially, stock is a partial ownership of something greater (a company) and the value of the stock is based on the company which is based on market which is based on when you buy and sell or how long you own the stock and/or who held the stock at each juncture. In other words, there are more than a few variables, as you well know, and these variables are what can make for a tax headache.

The tax code settles this complexity with a simple(r) equation of sale less basis equals taxable amount. “Basis” is the value during the point at which the present owner acquired the stock, which is the operative concept in inheritance. Stock basis will be measured at the juncture that it is inherited. Unpack that: a parent buys stock in 1990 and then leaves it to their heirs in 2014. While owned by the parents the stock jumps from $500 to $30,000 in the intervening 24 years. Thereafter, the heirs inherit the stock and only measure their taxable amount (sale less basis) on that $30,000 high point of 24 years of appreciation. Accordingly, a sale by the heirs down the line at $32,000 means that only that last $2,000 is taxable.

Again there is much more to be said and not all stock or stock taxation is so easy. And then again, not everyone inherits stock by bequest and the rules change. The big picture here is that when thinking about saving the inheritance from taxation it is not just the estate tax or the gift tax that you have to worry about, and it’s not just the settlor of the estate who pays them. Set up your assets inefficiently and your heirs can get stuck with a tax bill you didn’t think about. So think about stocks and think about the capital gains tax, and, more importantly, plan for them.

For more information on Inheritance; Stock; Capital Gains; Estate Planning; or Taxation; click to my website.

Reference: Kiplinger (May 1, 2014) “The Tax Hit on Inherited Stock”