New York Trusts & Estates

Inheritance "Bugs" at the Smithsonian in Yorktown, New York

Carl J Drake spent his life studying bugs, everything from aphids to water striders. When he died in 1965, the entomologist left his life savings and his vast insect collection to the Smithsonian. But now Drake's will has become something of a pest.

The case of the Smithsonian Museum and the entomologist Carl J Drake, as relayed in a recent article in the Guardian titled “Smithsonian Museum is bugging out over insect inheritance,” provides an example of how a gift of charity can actually be a gift of a burden to your institution of choice without the proper plans in place.

Most museums across the globe really only start out and build their vast collections through the largesse of charitable donors. The Smithsonian is no stranger to gifts of the strangest collections with the most peculiar needs and various limiting conditions. That said, Drake’s bug collection is beginning to bug them. The Museum is actually petitioning the courts in an attempt to modify the gift.

Drake left his vast collection of preserved specimen (dead bugs) to the museum through his last will with various rules attached to protect the collection and ensure its preservation. In addition, on top of that, he left his entire fortune to the museum with the express purpose of purchasing new bug collections. Unfortunately, the rules were written several decades ago and they just do not make as much sense anymore. Legal changes have made it hard to buy collections so the money sits and, moreover, the rules regarding the existing collection are as onerous as they are dated. While you can read more in the original article, when it is all said and done, the gift cuts against the museum’s own ability to effectively manage the collection and they lament the waste.

Drake really loved his bugs and he really thought hard about ensuring his collection would live on. It certainly is a motivation we can all appreciate – even the squeamish – and we can also appreciate the amount of planning he did to make the gift. This case illustrates both what you can do intentionally right and what you can do unintentionally wrong. Accordingly, the case is instructive on several levels.

If you have a very specific gift to make there is much to do and think about. Proper planning can mean building your gift with more appreciation for its receipt and longevity.

For more information on Charitable Giving; Collection; or Will; click to my website

Reference:  The Guardian (June 12, 2014) “Smithsonian Museum is bugging out over insect inheritance”

Creating Inheritance Incentives For Heirs in Yorktown, New York

The vast majority of estate planning lawyers get requests for trusts that "motivate responsible behavior by the next generation," said Los Angeles lawyer Jon Gallo, who presented an overview of the topic at the annual Heckerling Institute on Estate Planning.

If you are leaving behind an inheritance for the good of your young loved ones, you likely want to ensure that the inheritance will be a blessing and not a curse. Are they ready for the responsibility of having wealth? Or will they use it for "fun" to their own detriment? With careful planning you can make the inheritance itself provide the incentive to engage in good behaviors.

Incentivized inheritances offer you the chance to give the gift of possibilities and a secure future. Properly planned, such an inheritance can make your heirs pause to respect the inheritance and take responsibility for it. The Chicago Tribune looked into the topic in a recent article titled “Making sure your kids are trustworthy.”

Basically, to incentivize an inheritance is to build certain conditions into it. Ideally these conditions offer an heir a chance to grow and take responsibility. Want the inheritance? First, finish college, or go volunteer, wait until you’re a certain age, or just uphold shared values in your life. These are the kinds of conditions you could set for an inheritance and ask your heirs to work for them. This can be done with a will, however, for greater effect consider a trust. Specifically, many find an “incentive trust” or the more hands-on “principle trust” to be a powerful tool.

If you’re going to ask your heirs to think, then you’re going to have to expect the same of yourself. Incentive plans take a careful hand and a special awareness of your heirs, their motives and their possibilities. You don’t want to accidentally disinherit or dis-incentivize, for example. Finally, when it comes to actually putting the words to paper it takes some careful drafting to get it right and think of all the options. If you want your heirs to learn and grow, then it is worth the time and treasure to work with competent counsel and with your loved ones directly to build the best plan.

For more information on Estate Planning, Wills and Trust, click to my website.

Reference: The Chicago Tribune (May 8, 2014) “Making sure your kids are trustworthy”

Inheritance Problems: Fighting Over "Stuff" in Yorktown, New York

Dividing money is easy. But who gets Mom’s tea set?

When we hear about heirs fighting over an inheritance, most of us think about money as being the main issue. But money isn't everything! How you split up priceless family artifacts and other physical goods can start or end fights before they happen. So how do you plan to fairly spread the relics and keep the peace?

Sure, there are many inheritance fights over dollars and cents. On the other hand, there are even more fights leading to protracted probate battles and just plain old hurt feelings over the disposition of physical goods, relics and family keepsakes. Unfortunately, it can be more difficult to plan for the disposition of these “things” in contrast to cash.

As you begin to think about your estate in this light and figuring out who wants what, consider the insights provided in a recent article in Consumer Reports, aptly titled “How to spare your heirs a battle over your estate.”

Oftentimes, physical items are difficult to split up. For example, you can’t simply tear the painting in half, divide a book, or even realistically split a set of china. In the end, in order to end a debate about which direction an item will go, to one heir or the other, you have to write it out. A will is simply not enough, generally speaking. It is hard to capture the kind of detail needed. Consequently, the matter will go straight into probate.

Thankfully, many states allow you to attach a more informal writing to your will – a document that offers a list of “what” and “to whom”, and is far more easily updated. No one, however, can make the often tough distribution decisions and create the list for you.

This list is one of those many little tasks to take on as part of the overall plan, and one you must keep updating as you acquire or lose this or that asset or family heirloom. This is also a topic worth discussing with your heirs. That way you, and they, will know what things they may want. After all, with heirloom fights it is an emotional connection to an object at the heart of the matter rather than its intrinsic value. Remember, it’s not always about money, because money isn’t everything.

For more information on Estate Planning, Will and Inheritance, click to my website.

Reference:  ConsumerReport.org (April 2014) “How to spare your heirs a battle over your estate”

Eight Go-To Estate Planning Documents in Yorktown, New York

Many of us want to get going but don't know where to start. So, here are eight documents that can help you get your affairs in order. If that sounds like a lot of paperwork, don't worry: You probably won't need every one of them.

A properly planned and executed estate plan will have a few key elements and a number of important documents. So how many pieces is your plan all together? It depends upon your own estate. Regardless of your unique estate, it’s helpful to start with a basic list of documents.

There are a great number of little estate planning lists out there, and a dozen ways to list the documents you might need. That noted, MSN Money provided a helpful guide not too long ago with a helpful list of eight titled “Estate-Planning Documents You Need Right Now.”

The eight?

1. Last will and testament
2. Revocable living trust
3. Beneficiary designations
4. Durable power of attorney
5. Health care power of attorney and living will
6. Provision for digital assets
7. Letter of intent
8. List of important documents

Now you might not need all of these elements. In the context of your plans, one or another may be all the more important and so all the more robust. However, these are the basics to consider as you get started.

The original article has more to say concerning each tool and some further resources besides.

Do you have unique goals, unique assets, or a unique family?

It’s very likely there is more to be done with these documents and a few useful tools besides. Whether your plan will be basic or advanced, it pays to ensure that your affairs are in order with the input and guidance of competent counsel.

For more information on Estate Planning; Wills; Trusts; Elder Law, click to my blog.

Reference: MSN Money (April 18, 2014) “Estate-Planning Documents You Need Right Now”

Get Your Wishes In Writing Before It's Too Late in New City, New York

Stop saying everyone knows what you want. Everybody probably doesn’t know. Or in their grief, they may not be able to make the decisions you would have preferred. If you don’t leave written instructions, emotions or unresolved issues can get in the way.

The amount of frustration a family goes through when someone’s affairs are not in order and not in writing is beyond measure. When tragedy strikes or life takes over, the importance of planning is not lost on those who realize there were no plans made. What can you really do after the fact? Proper planning needs to happen now.

For an impassioned voice on the matter and some advice you should heed, be sure to read a recent commentary published in The Washington Post titled “Put your estate plan on paper before it’s too late.”

The author recounts her own experience with her mother, who wasn’t even suffering from old age. Her mother was moved to critical condition after an accident. Unfortunately, the author was left on the other side of a legal wall caused by the lack of a financial durable power of attorney and healthcare directive that might have allowed her to come to aid. Worse still, the mother had actively put-off or refused committing her wishes to paper, and that’s why there was no legal recourse.

If you or a loved one have not committed your financial durable power of attorney and healthcare directive wishes to paper, then here’s one more story to remind you why they are so important.

We plan because there is a reason for certain privacy, healthcare and even probate. It is our own personal responsibility. If nothing else, we plan because when the time comes there are more important things to think about, like the comfort of an ailing loved one or the memory of a recently passed one.

The original article spells out the basics and brings the need to complete your own plan clearly into focus.

For more information on Estate Planning, Elder Law, Living Will, or Durable Power of Attorney, click on my website.

Reference: The Washington Post (March 20, 2014) “Put your estate plan on paper before it’s too late”

 

 

 

 

No-Contest Clause: Don't Let Heirs Contest Your Will in Yorktown, New York!

A no-contest clause may be a good idea if you have a beneficiary who may be upset by the property distributed to him or her.

Consider this common estate plan predicament: you are drafting a will and know that if it is challenged by a spurned heir or for anyone for any reason, it will end up potentially ruined on the shoals of probate for all to see. What can you do?

This scenario is a all too common. Fortunately, a well-drafted will in many states can include a powerful tool such as a No-Contest Clause. Recently, ElderLawAnswers considered this approach in an “answer” titled “Using a No-Contest Clause to Prevent Heirs from Challenging a Will or Trust.”

Essentially, this clause means that any heir who challenges the will in question is immediately disqualified from any inheritance from it. The clause is most effective when a would-be challenger is set to receive something under the will. Consequently, this party is forced into a cost-benefit analysis regarding his or her contemplated challenge. Like anything legal, however, the clause must be carefully conceived and deployed to work as intended.

As a rule of thumb, there are always more powerful estate planning tools available if you need them. Nevertheless, for most people planning their estates, a well-drafted will is the heart of those plans. Be sure that your will does the work it needs to do.

For more information on Estate Planning, Will, Trusts, or Probate, click on my website.

 

Reference: ElderLawAnswers (February 25, 2014) “Using a No-Contest Clause to Prevent Heirs from Challenging a Will or Trust”

Wills -- The Devil Is In The Details in Yorktown, New York

To keep your will from “going wrong,” avoid these common mistakes.

The intention of creating a will is so that your wishes will be carried out when you are no longer here. It's a pretty powerful document, no doubt! So what happens if there is a mistake in the will?

There are numerous ways in which a last will can go wrong. For a basic introduction to get you thinking like a preemptive problem-solver, consider reading a recent Forbes article titled “Wills Gone Wrong: Mistakes That Can Thwart Your Last Wishes.”

There are three basic issues when a last will can go astray. First, the wording can be unclear, incomplete, incongruous or incorrect. Second, the words can be outdated. Third and finally, the words can be absolutely perfect, but the will is nowhere to be seen or some other draft is discovered first.

If nothing else, to get it right, draft your will with the assistance of a professional. Then, to keep your estate in order, be sure to respect your last will as the document it is. Accordingly, be careful to protect it, keep it current, and keep it within easy reach of the right people once the time comes.

The original article presents specific problems and even a few stories to illustrate them. Be sure you get it right, unlike the tragic stories in the article. Planning your estate is not a do-it-yourself project. There is just too much at stake.

For more information about Estate Planning, Estate Law or Will visit my website.

 

Reference: Forbes (February 20, 2014) “Wills Gone Wrong: Mistakes That Can Thwart Your Last Wishes”

Ethical Wills Transfer Legacies in Yorktown, New York

An ethical will is an attempt to transfer an intangible legacy.

What is an ethical will? Think of your will as providing the legally-binding “how” when it comes to your estate plan. How do you want your assets to be distributed? On the other hand, think of your ethical will as providing the non-binding “why” when it comes to the matters of the heart behind your estate. Why are you distributing your assets as you are?

WealthManagement.com took up the topic of ethical wills in a recent article titled “The Rep’s Guide to Ethical Wills.”

You might say that there are two important aspects when it comes to planning for your estate. On the one hand, every decision is a legal decision. Consequently, you have to appease the law and the court system. On the other hand, every decision intimately and ultimately effects your loved ones who just need to understand your decisions.

The dilemma is that legal language is not too great at expressing an emotive concept, but you can always work outside the lines to ensure that your point gets made with an ethical will in which you write your reasons, emotions and hopes in an entirely non-legal way.

The ethical will can appease the emotional curiosity in the same way that the will sticks around to speak to your legal needs after you are gone.

For more information about Estate Planning, Ethical Will or Will visit my website.

 

Reference: WealthManagement.com (February 25, 2014) “The Rep’s Guide to Ethical Wills”

Wills And Trusts: Do You Need One Or Both in White Plains, New York?

The question that many Americans want answered is: is a will or trust best for retirees?

There are simple solutions to simple problems, and complex solutions to complex problems. That being said, when it comes to estate planning many Americans ponder the following: "will or trust?"

If you have found yourself between these horns of dilemma, the simple will and the (sometimes) complex trust arrangement, then you will want to consider a recent Forbes article titled “Wills vs. Trusts: What's Best For Retirees?”

There is a debate and for good reason. The last will can be simple, and everyone needs one even when they have settled a revocable living trust (i.e., commonly known as a “pour-over will”). Even with a “simple” last will, a period of probate is required and there may be some adverse tax implications. However, this is less likely these days with the federal estate tax exemption pegged at $5.34 million (but do not forget to check state estate taxes that may apply).

A revocable living trust arrangement can move assets very efficiently outside of the probate process. That said, trusts are not as simple as signing on the dotted line. In reality, revocable living trusts must be regarded as a new legal entity to maintain. It must hold title to your assets now, or upon your death to do its work outside of probate. It takes effort, and sometimes the dedication of resources, to achieve these complex goals.

In the end, it will always come down to your needs, the needs of your family, and the nature of the assets to leave behind. However, the question is very real and worth asking: do I need a revocable living trust or can you do it with a last will alone?

Properly answering this question, given your own unique circumstances and objectives, is not a do-it-yourself project. Consult competent legal counsel regarding how each approach may (or may not) be appropriate for you.

For more information about Estate Planning, Wills or Trusts please visit my website.

 

Reference: Forbes (February 18, 2014) “Wills vs. Trusts: What's Best For Retirees?”