Open Circuit: Why I Draft Credit Shelter Trusts Couples May Never Use
Engineers design circuits for systems that may never get built. Trust lawyers draft provisions for situations that may never arise. The credit shelter trust I write into a will is the cleanest example: drafted in full, wired into the document, carrying nothing. Most stay that way. I draft them anyway. A credit shelter trust — …
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Disclaimers: The Estate Planner’s Derivative
Wall Street has derivatives; trust lawyers have disclaimers. Both are exercises in optionality. A derivative gives you the right but not the obligation to buy or sell a security. A disclaimer gives the widow nine months to decide whether she actually wants the inheritance her husband left her. If she “exercises” the option, the asset …
Trustee Fees in New York
In New York, trustees are entitled to compensation for their services. The fee is determined by statutory law, unless otherwise specified in the trust instrument, and generally referred to as trustee commissions. Annual Trustee Commissions Trustees in New York receive annual commissions based on the value of the trust’s principal, with specific payout rates as …
Estate Planning for Non-Citizens
Do You Need a Qualified Domestic Trust (QDOT)? A Qualified Domestic Trust (QDOT) is a vital estate planning tool designed to allow non-citizen spouses to benefit from the marital deduction for U.S. estate tax purposes. However, unless the surviving spouse becomes a US citizen, the QDOT merely postpones the estate tax. Here’s an overview to …
New York’s New Transfer on Death Deed
New York now has a Transfer on Death deed, which goes into effect on July 19, 2024. Traditionally, if a client wants to avoid probate for their real estate, we must create a trust and transfer the deed into the name of the trust. A trust avoids Surrogates Court and the property passes seamlessly to …
Is Your Power of Attorney Strong Enough? The Devil is in the Details
In the realm of estate planning, a Power of Attorney (POA) stands as a crucial document. However, not all Powers of Attorney are strong enough to withstand the test of time and all situations. The devil is, as they say, in the details. That is, it may seem like a simple document but it is …
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Navigating Medicaid: 2026 Income and Asset Guidelines for Long-Term Care
As our population ages, more and more seniors are choosing to age in place, staying in their homes and communities rather than moving to assisted living or nursing homes. Aging in place is always preferred but not always possible. But cost doesn’t need to be a barrier for seniors wishing to live independently. New York’s …
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Swedish Death Cleaning + Your Estate Plan
A new trend in decluttering has emerged that not only makes the afterlife easier for your loved ones, but also brings joy to the process of letting go. Welcome to the world of Swedish death cleaning, the Marie Kondo of the afterlife. Swedish death cleaning, or döstädning, is a term coined by Swedish author Margareta …
Funding Education in Your Estate Planning: Giving Your Children Roots and Wings
Parents worry about education. Not only about paying for education, but about fostering curiosity so kids want to learn. It is why we limit screen time but send them to coding classes. With an education we have more options in life, which means more freedom, independence, and (hopefully) happiness. Let’s explore how to efficiently fund …
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Don’t You, Forget About Me: No You Cannot Disinherit a Spouse
Does a Spouse have a Right to Inherit? New York does not allow a spouse to be disinherited. Children, yes. It has not always been the case that spouses were protected over children. Some countries, and even Puerto Rico, still have forced heirship laws, mandating assets pass down the blood line. But New York allows …
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Pending Divorce? Run, Don’t Walk, to your Estate Planning Attorney
Estate Planning Changes after a Divorce or Separation The literal meaning of divorce is to “turn to different ways.” Once the decision is made to part ways, the physical and emotional separation is usually immediate, but the legal severing of ties can take months, if not years. Even in the most amicable divorces, does anyone …
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Estate Planning for Musicians
New York is a mecca for the arts and there are approximately 12,000 professional musicians living in New York City and countless others just breaking into the music business. This includes studios musicians, band members, opera singers, soloists, hip hop artists, Broadway performers, orchestra musicians, composers, and songwriters. In addition to having the same estate …