Archive for the ‘Trusts’ Category

How to Discuss Estate Planning Without Unnecessary Drama

Friday, September 11th, 2020

Littman Krooks Retirement PlanningFamilies can usually agree on the importance of creating a New York estate plan. However, as crucial as having a comprehensive estate plan is, recent studies show that only a small percentage of couples – most of them older – have current estate planning documents in place. When those who do not have an estate plan are asked why that is the case, the most common response is that they are avoiding having a difficult conversation with their loved ones. For parents, this concern is primarily centered around not wanting to cause problems between siblings.

The first step toward drama-free estate planning is understanding what causes drama between siblings in the first place. Of course, parents cannot necessarily resolve existing sibling rivalries or long-standing disagreements between siblings, which can make the process more challenging. In addition, the estate planning process itself can cause other types of issues to arise. For example, siblings who may not communicate that often may be skeptical of the others’ motives; they may disagree on who should pay for final arrangements, or how assets should be divided. Parents can take specific steps to make the estate planning process easier and reduce the chance of starting arguments between their children.

Create a Financial Overview

littman krooks elder lawWhile a comprehensive estate plan provides a detailed explanation of where a couple wants their assets to end up after they pass on, it does little to explain to children what those assets are and where they are located. A financial overview solves this problem by providing a list of all family assets and their location. For example, parents may have bank or investment accounts that at least one child is unaware of. If a child believes assets are only made known to certain siblings, it can start to build resentment, which may grow over time. By sharing a financial overview with all children, parents can reduce the perception of favoritism.

A proper financial overview should include the following information:

  • A list of all assets, liabilities and insurance policies, as well as how they are titled and any named beneficiaries.
  • Contact information for all financial, legal and insurance professionals.
  • Usernames and passwords for all financial and insurance websites.
  • A legacy letter outlining the non-financial assets, such as family heirlooms, that parents want to pass on to their children.

By creating a financial overview, parents can not only make the estate administration process easier for the executor but can also reduce the chances of starting family conflict. However, ongoing and open communication will also be essential.

Schedule a Family Meeting

After parents create an estate plan and a financial overview, the next step is to schedule a family meeting. Both parents, as well as all children who will be inheriting assets, should attend the meeting. While ideally, family members would meet in person, if children live across the country or a family is concerned about maintaining social distance, a family meeting could be held virtually.

Topics to cover at the family meeting include:

  • Discussing the basics of the estate plan;
  • Ensuring at least one person knows the location of the estate planning documents;
  • Explaining who will be the executor of the estate, as well as any other necessary parties, such as trustees;
  • Discussing the importance of transparency and openness during the estate administration process;
  • Outlining the parents’ plan for important non-financial items, such as family heirlooms; and
  • Discussing the importance of keeping things fair and using the process to bring the family together.

For many parents, the process of discussing their estate plans with their children is a topic to be avoided. However, these are crucial conversations that must take place to increase the likelihood of a smooth and drama-free estate administration process.

Speak With a New York Estate Planning Lawyer for Immediate Assistance

Creating an estate plan to address your family’s unique needs is crucial to securing your legacy and ensuring that future generations are cared for. At the New York estate planning law firm, Littman Krooks, LLP, we have over 30 years of experience helping families effectively plan for their financial future. We pride ourselves in providing an exceptional level of service to individuals of varying net worth, helping our clients ensure that future generations are well taken care of and reducing the tax burdens on their estates. To learn more about how our dedicated team of attorneys can assist your family with its unique needs, call 914-684-1200 to schedule a no-obligation consultation today.

 

A Message to Our Clients and Our Littman Krooks Family

Friday, March 13th, 2020
Dear Client and Friends, 
At Littman Krooks, the health and safety of our clients and staff is our highest priority. We pride ourselves on exemplary and individualized services to our clients. We are writing to provide you with the steps that we are taking to protect you and our staff against the spread of the Coronavirus (COVID19). We understand the paramount importance of these tasks, as we serve many elderly clients and families with children with health concerns.
Steps We are Taking To Protect You and Our Staff:
  • We are maintaining social distancing, which means that we will not be shaking hands, hugging or touching anyone.
  • Hand sanitizer is available in our reception area and we are asking you to apply a generous amount to both of your hands upon entry to our office.
  • Staff know to wash their hands each time they enter our building before touching anything and frequently throughout the day.
  • We have remote access for employees who are ill or need to work from home.
  • If you or someone you have been in contact with is experiencing symptoms of coughing, high fever and/or shortness of breath, we ask that you not come to our office.
  • If you do not feel comfortable visiting our office in person, because you may be sick or for any other reason, please consider meeting with us virtually either via conference call or through FaceTime or similar service. Call our office at (914) 684-2100 to let us know that you would like to change your meeting to a virtual one. Our staff will be happy to assist.
Protect Yourself and Those Around You: We encourage all to follow basic hygiene measures that protect us from respiratory viruses. As the Center For Disease Control recommends, these actions include:
  • Washing your hands often and thoroughly with soap and water for at least 20 seconds. If soap and water are not available, use an alcohol-based sanitizer.
  • Avoiding touching your eyes, nose and mouth with unwashed hands.
  • Avoiding close contact with people who are sick.
  • Staying at home if you are feeling sick, especially if you have a fever, are coughing and/or have shortness of breath. If you have those symptoms, please seek medical care early.
  • Covering your mouth and nose with the inside of your elbow when you cough or sneeze and, if using a tissue, dispose of it immediately into a closed bin and clean your hands with alcohol-based sanitizer or soap and water.
  • Cleaning and disinfecting frequently touched objects and surfaces by using disinfectant spray or wipes.
Extra Protections for Those at Higher Risk: If you are at higher risk of getting very sick from COVID-19, meaning if you are older or have a health condition, you should:
  • Stock up on supplies.
  • Take everyday precautions to keep space between yourself and others.
  • When you go out in public, keep away from others who are sick, limit close contact and wash your hands often.
  • Avoid crowds as much as possible.
  • Avoid cruise travel and non-essential air travel.
  • During a COVID-19 outbreak in your community, stay home as much as possible to further reduce your risk of being exposed.
We thank you for your understanding and cooperation as we navigate this challenging time. We understand that the situation is evolving and we will continue to actively monitor it and take the necessary precautions. Our firm remains dedicated to providing our clients with the highest level of client service in every way possible
For additional information regarding the Coronavirus, here are resources from the CDC and the New York State Department of Health:

It’s Time to Protect Your Family and Your Future: April is National Financial Literacy Month

Monday, April 1st, 2019

Estate planning is a financial process that can protect you and your family, and is a very important component of your overall financial planning. April is National Financial Literacy Month to put your estate planning house in order. If you don’t have an up-to-date estate plan and you happen to get hurt or sick and cannot manage your financial affairs, the courts will have to appoint someone to manage them for you. The person they appoint might not be the one you would want to perform those tasks.

Without an estate plan when you pass away, your affairs will be settled by default through a complex legal system called “probate.” The handling of your financial affairs can turn into a costly and frustrating ordeal for your family and heirs.

The crafting of a good estate plan starts with planning, followed by the proper drafting and signing of appropriate legal documents such as wills, trusts, buy-sell agreements, durable powers of attorney for asset management, and an advanced health-care directive or health-care power of attorney. Having these documents in place saves you and your family a lot of money and time at a very difficult and emotional time.

Your estate planning should also address the coordination of the way you hold title to your various assets, your beneficiary selections, and the possible transfer of certain assets while you are alive.

Regardless of the extent of your net worth, estate planning is important for everyone. Complex strategies may be used by wealthy people to reduce death taxes and costs. Others may only require a simple will and/or trust to pass on property to their heirs and provide for minor children.

Even if a simple will is all you require, an estate plan is an essential part of your financial planning. Everybody will need it someday. The time to address or update your estate plan is now.

CHECKLIST — SIX STEPS TOWARD SUCCESSFUL ESTATE PLANNING

1. DEFINE YOUR GOALS: What do you want to happen to your assets in the event of your death or disability? If your beneficiaries predecease you, who are your alternate selections? How will your assets be distributed, and when will these distributions take place?

Decisions on distribution of your estate assets should take into account the size of the estate, the ages and abilities of your children, and your personal desires. For example, a distribution to children over time might consist of 10 percent of the estate at age 18, 25 percent at age 21, 50 percent at age 24 or upon completion of college, and the balance at age 30.

Choose your appointees for important roles: Who will be your executor and, if applicable, trustee and/or guardians? It is advisable to list at least a first and second alternate for each appointment in case your first choice is unwilling or unable to serve.

If you have children who are minors, the appointment of a guardian is probably the most important decision you’ll make. With the court’s approval, this person, or persons, will raise your children. Consider appointing a family member and spouse, or another close couple who’ll care for your children the way you would want.

You may want to consider listing multiple executors, trustees and guardians to serve together in handling the details of your estate. This can provide a check-and-balance system for the appointees and help them avoid oversights or misappropriations. Consider appointing family members, friends, professionals, advisers and/or trust companies for this position.

There is some risk here: If these people disagree and have problems, they can each be represented in court by counsel paid for by your estate, so be very careful in making your selections.

Living trusts have become popular because less administration is required in comparison with a will. Be aware that having a living trust does not eliminate the need for a will and administration at either the first or second spouse’s death.

To get the benefits of the trust, certain details must be attended to, and this is the job of your appointees. For example, leaving a trust for the surviving spouse requires that the trust be funded properly and in a timely manner at the first death, or major tax benefits can be lost.

Is estate privacy an issue for you? Do you want your estate to be public record upon your death? Do you have any special gifts you want made to charity? Do you want an elderly parent or friend to be financially cared for? All of these circumstances should be noted in your plan.

2. GATHER & ORGANIZE YOUR DATA: There are three basic tasks to be accomplished:

  • Review and update your financial position.
  • Review how you hold title to your assets. Is it consistent with your estate plan?
  • Review your beneficiary selections. Are they aligned with your estate plans?

Did you know that how you hold title to assets has a higher legal priority than your will? For example, if you and your best friend held title to an investment club account as joint tenants and you died, the property would revert to your friend even though you had willed your interest to your spouse.

3. ANALYZE YOUR SITUATION: Start by determining your current net worth, assuming your death occurred today. This can be done by totaling your current assets and liabilities, and adding the value of any life insurance.

Try sketching a picture or flow chart of your existing estate plan. Review your appointees:

  • Executor
  • Guardian of the Person/of the Property
  • Trustee
  • Power of Attorney – Property Management
  • Advanced Health-Care Directive or Health-Care Power of Attorney

 

Check with your financial advisors for updated information.

4. DEVELOP YOUR STRATEGIES: With the assistance of your estate planning advisor(s), identify the legal documents that need drafting or make any necessary adjustments to existing documents. Determine any other actions that must be taken for your wishes to be carried out.

5. IMPLEMENT YOUR PLAN: Do what needs to be done — i.e., create new wills, trusts and powers of attorney, adjust title to your properties, change alternate beneficiaries of retirement plans and life insurance policies to trusts.

6. TRACK & MONITOR YOUR PROGRESS: Check your estate plan annually or any time there are changes in your family situation or net worth. Use your financial planning calendar to schedule your next review.

These materials are provided as a public service by The NAEPC Education Foundation for “free-use” on websites, newspapers, newsletters, magazines, and other media broadcasts during the months of April and October as it relates to National Financial Literacy Month and National Estate Planning Awareness Week. For additional information or materials contact us at The NAEPC Education Foundation.

To assist with your estate planning, visit our website at www.elderlawnewyork.com.

Is Your Estate Plan Up To Date?

Friday, March 22nd, 2019

By: Amy C. O’Hara, Esq., Littman Krooks LLP

In order to ensure your existing estate plan meets your objectives, it is imperative that it be reviewed at least every 3-5 years and updated when needed.  Here are some issues that might necessitate updating your estate plan:

  • You want to avoid probate;
  • You or a beneficiary become disabled or have a long-term illness;
  • Death of a beneficiary;
  • Marriage, divorce or remarriage;
  • Birth or adoption of a child;
  • Death or change of executor, trustee, and/or guardian;
  • A change in the distribution of your estate;
  • A significant increase or decrease in your net worth;
  • Retirement;
  • Expecting to change state of domicile; and
  • Finally, any time you feel uneasy about any of your documents, making changes and/or speaking with your estate planning lawyer to make you feel comfortable with them.

Never make any changes on your current estate planning documents.  Mark-outs, interlineations and other informal changes are of no effect and will not be honored during an illness or after your death.  It is important to meet with an experienced estate planning lawyer to ensure you estate plan is updated properly to protect you and your loved ones.

 

Learn more about our elder law  estate planning or Medicaid Planning services. Contact us with additional questions.  


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How to find resources for seniors in New York City

Monday, February 5th, 2018

New York City’s senior population is growing quickly. There are now more than 1.4 million New Yorkers over the age of 60, and that number is expected to rise to more than 1.8 million by 2030. At that time, there will be more older adults than school children in New York City, and seniors will account for one out of every five residents. There is a vast array of community resources available to help seniors with their daily needs, but they can be difficult to locate. New York City’s Department of Aging has an online tool that can help.

Littman Krooks elder law attorneysThe Department of Aging’s Find Help tool is designed to help seniors and their family members easily find the resources they need in their area. You can search by zip code or borough, and search for the type of services you are looking for, which may include abuse prevention, caregiver resources, case management, health promotion services, home care, home delivered meals, legal services, naturally occurring retirement communities, senior centers, social adult day care and day services, transportation and geriatric mental health.

Searching by location and type of services gives you a list of providers, and by clicking on an individual result, you will be given detailed information about the service provider, including the address, phone number, hours of operation and services offered.

 

Learn more about elder lawestate planning and special needs planning at littmankrooks.com,  elderlawnewyork.com  & specialneedsnewyork.com. Have questions about this article? Contact us.


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National Financial Literacy Month: Six Steps Toward Successful Estate Planning

Tuesday, October 10th, 2017

In support of National Financial Literacy Month (April) and National Estate Planning Awareness Week (3rd week in October), the following estate planning article contains a very important message:

Estate planning is a financial process that can protect you and your family and is a very important component of your overall financial planning. Now is the perfect time to put your estate planning house in order. If you don’t have an up-to-date estate plan and you happen to get hurt or sick and cannot manage your financial affairs, the courts will have to appoint someone to manage them for you. The person they appoint might not be the one you would want to perform those tasks.

Without an estate plan, when you pass away, your affairs will be settled by default through a complex legal system called “probate.” The handling of your financial affairs can turn into a costly and frustrating ordeal for your family and heirs.

The crafting of a good estate plan starts with planning, followed by the proper drafting and signing of appropriate legal documents such as wills, trusts, buy-sell agreements, durable powers of attorney for asset management, and an advanced health-care directive or health-care power of attorney. Having these documents in place saves you and your family a lot of money and time at a very difficult and emotional time.

Your estate planning should also address the coordination of the way you hold title to your various assets, your beneficiary selections, and the possible transfer of certain assets while you are alive.

Regardless of the extent of your net worth, estate planning is important for everyone. Complex strategies may be used by wealthy people to reduce death taxes and costs. Others may only require a simple will and/or trust to pass on property to their heirs and provide for minor children.

Even if a simple will is all you require, an estate plan is an essential part of your financial planning. Everybody will need it someday. The time to address or update your estate plan is now. See the checklist provided below to help update your estate plan:

CHECKLIST — SIX STEPS TOWARD SUCCESSFUL ESTATE PLANNING

1. DEFINE YOUR GOALS: What do you want to happen to your assets in the event of your death or disability? If your beneficiaries predecease you, who are your alternate selections? How will your assets be distributed, and when will these distributions take place?

  • Decisions on distribution of your estate assets should take into account the size of the estate, the ages and abilities of your children, and your personal desires. For example, a distribution to children over time might consist of 10 percent of the estate at age 18, 25 percent at age 21, 50 percent at age 24 or upon completion of college, and the balance at age 30.
  • Choose your appointees for important roles: Who will be your executor and, if applicable, trustee and/or guardians? It is advisable to list at least a first and second alternate for each appointment in case your first choice is unwilling or unable to serve.
  • If you have children who are minors, the appointment of a guardian is probably the most important decision you’ll make. With the court’s approval, this person, or persons, will raise your children. Consider appointing a family member and spouse, or another close couple who’ll care for your children the way you would want.
  • You may want to consider listing multiple executors, trustees and guardians to serve together in handling the details of your estate. This can provide a check-and-balance system for the appointees and help them avoid oversights or misappropriations. Consider appointing family members, friends, professionals, advisers and/or trust companies for this position.
  • There is some risk here: If these people disagree and have problems, they can each be represented in court by counsel paid for by your estate, so be very careful in making your selections.
  • Living trusts have become popular because less administration is required in comparison with a will. Be aware that having a living trust does not eliminate the need for a will and administration at either the first or second spouse’s death.
  • To get the benefits of the trust, certain details must be attended to, and this is the job of your appointees. For example, leaving a trust for the surviving spouse requires that the trust be funded properly and in a timely manner at the first death, or major tax benefits can be lost.
  • Is estate privacy an issue for you? Do you want your estate to be public record upon your death? Do you have any special gifts you want made to charity? Do you want an elderly parent or friend to be financially cared for? All of these circumstances should be noted in your plan.
  • GATHER & ORGANIZE YOUR DATA: There are three basic tasks to be accomplished:
  • Review and update your financial position.
  • Review how you hold title to your assets. Is it consistent with your estate plan?
  • Review your beneficiary selections. Are they aligned with your estate plans?
  • Did you know that how you hold title to assets has a higher legal priority than your will? For example, if you and your best friend held title to an investment club account as joint tenants and you died, the property would revert to your friend even though you had willed your interest to your spouse.

3. ANALYZE YOUR SITUATION: Start by determining your current net worth, assuming your death occurred today. This can be done by totaling your current assets and liabilities, and adding the value of any life insurance.

  • Try sketching a picture or flow chart of your existing estate plan. Review your appointees:
  • Executor
  • Guardian of the Person/of the Property
  • Trustee
  • Power of Attorney – Property Management
  • Advance Health-Care Directive or Health-Care Power of Attorney

4. DEVELOP YOUR STRATEGIES: With the assistance of your estate planning advisor(s), identify the legal documents that need drafting or make any necessary adjustments to existing documents. Determine any other actions that must be taken for your wishes to be carried out.

5. IMPLEMENT YOUR PLAN: Do what needs to be done — i.e., create new wills, trusts and powers of attorney, adjust title to your properties, change alternate beneficiaries of retirement plans and life insurance policies to trusts.

6. TRACK & MONITOR YOUR PROGRESS: Check your estate plan annually or any time there are changes in your family situation or net worth. Use your financial planning calendar to schedule your next review.

 

Learn more about National Financial Literacy Month by clicking here. For more information on estate and financial planning content contact v.sabuco@TheFinancialAwarenessFoundation.org.

 

 

 

Consider Carefully in Choosing Between a Lump Sum and an Annuity

Wednesday, May 27th, 2015

If your retirement plan includes a pension, consider carefully in choosing between a lump sum and an annuity

A number of large employers offer the option to cash out pensions to retirees and former employees, providing a lump sum payment rather than an annuity.

This option can be beneficial for some people, and tempting for many others. Individuals should carefully consider their options before opting for a lump sum payment. Choosing a lump sum payment is a permanent decision that cannot be reversed, and it is not appropriate for everyone. Littman Krooks retirement planning

A lump sum payment may be beneficial for if an individual is in poor health and does not expect to live long enough to benefit from the guaranteed income provided by the pension. The lump sum payment can assist with their increased medical and living expenses. A lump sum payment can also be beneficial for those who have not saved enough for their retirement and therefore needs access to funds for basic living expenses.

For most, though, having a guaranteed income from the pension is the best option. When retirees take the lump sum, they become responsible for investing the proceeds and making sure it lasts throughout retirement. Opting to receive a pension places the responsibility to invest retirement funds on the financial company. In addition, the lump sum payout is calculated based on average life expectancy — those who live longer will lose out if they take a lump sum payment. Further, leaving the pension in place may have certain advantages in long term care planning in the event the retiree needs nursing care.

Taking the lump sum can also be detrimental from a tax perspective. Unless the lump sum is directly rolled into an IRA, it is counted as income for the year, which could push the individual into a higher tax bracket. To determine if a lump sum payout is the best option for you, meet with your accountant, financial advisor, and experienced elder law attorney at Littman Krooks LLP.

 

Learn more about our services by visiting www.elderlawnewyork.com.


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Should You Consider a Trust for Your Child’s Inheritance?

Monday, August 4th, 2014

An update has been made to the NY Estate Tax. To read our update, please click here.

This conversation comes up a lot with our estate planning clients: “So, you’re leaving your entire estate equally to your three kids,” we say to our client. “Do you want to leave it outright or would you consider putting it in a trust for them?”

The two most common responses:

  •  “No, my kids are all OK. They can manage money and would be insulted if their inheritance was left in trust.”
  •  “No. If they can’t manage their inheritance then I can’t help them. I don’t want to try to control things after I’m gone.”

Then, we explain that creating a trust is actually a good thing for the kids but it’s usually hard to convince clients. So let’s try it here, and then we can just hand them this article.

Why consider a trust for your child’s inheritance? It may be a real benefit to them, protecting their inheritance from their creditors, spouses, even estate taxes. Let’s look at each of those concepts briefly:

One common concern we hear: “we love and trust our daughter, but though we like her husband we wouldn’t want him to inherit our assets if something happens to our daughter.”   By creating a trust for your child’s inheritance, you make it easier to keep the property separate from spouses and more likely to pass to your grandchildren on your child’s death. Sadly, divorce is very common: you can help keep the inheritance from being considered as part of the property to be divided if your daughter does divorce.

Let’s consider creditors. “Our son is a doctor,” you say, “and he has plenty of money.” Ah, but professionals are vulnerable to future malpractice lawsuits, and anyone can have even a substantial estate drained by an auto accident or medical crisis. Creating a trust for your son can help protect the inheritance from lawsuits, creditors, and bankruptcy.

How about taxes? If your daughter is a successful professional, she might well have a taxable estate on her death. That could be true even though she is not particularly close to that figure today. If estate taxes do kick in, they start at a very high 40% on the federal level. New York currently has an estate tax on estates over $1 million.  If you leave your daughter’s inheritance in trust, you can fairly easily arrange to keep it out of her “estate” for tax purposes.

So there are good reasons to leave an inheritance in trust, even though all your children are responsible and your estate is modest. But aren’t there some serious downsides? Doesn’t it mean a lot of additional costs and imposition of a bunch of difficult rules? Not really.

Depending on your family circumstances, you might even name your son trustee of his own trust. Or make your son trustee of the trust for your daughter, and make her trustee of his trust. Or make your daughter (you know, the one with her CPA who works for the bank) trustee for all the kids’ trusts. In other words, creating a trust does not mean you have to incur professional trustee fees though it might actually make sense to name a non-family trustee. We can talk about those options.

The trusts for your children will have to file tax returns each year. That will in fact mean a small additional cost. But the total amount of income tax paid need not increase. It should be fairly easy to assure that each trust’s income is taxed to its beneficiary, rather than paying taxes at the (often much higher) trust rates. We can talk about those issues, as well.

What about your son’s access to the money? Do you think he might want to use his inheritance to pay off his mortgage, or to allow him to put more away for retirement, or to send your grand kids to college? You can give him the power to demand money from the trust, or give the trustee direction to follow those kinds of requests. Let’s talk about how much control you want to give each of your children over the trust while they are alive. And on their death, you can even give your children the power to name which of their children (or spouses, or charities, or whomever you want to permit) will receive the remaining trust’s assets.

Cost? Setting up a trust for each of your children will likely increase the cost of your estate planning but by a pretty small number, in most cases. These principles apply even (perhaps especially) if you are leaving your estate to grandchildren, nieces and nephews, or anyone other than your children.

As you can see, there are many benefits of using a trust in your estate planning.  Keep in mind, however, that one size does not fit all and it is important to have your documents tailored to meet your specific needs.

An update has been made to the NY Estate Tax. To read our update, please click here.


Learn more about elder law and estate planning by visiting www.elderlawnewyork.com

 

 

Sharing Caregiving Responsibilities Among Siblings

Thursday, November 14th, 2013

Caring for an elderly parent in declining health is a big responsibility, and one that can have a significant effect on the caregiver’s financial and emotional well-being. Having a sibling to share in that responsibility can make things easier, but it can also lead to conflict and resentment. It is important to understand the issues that may arise when two or more adult siblings are caring for an elderly parent, and the best ways to resolve problems.

One question that usually comes up at the outset is who will be the primary caregiver. If only one sibling lives close to the parent who needs care, that is often the deciding factor. When two or more siblings live close by, then the decision often depends on work schedules. If none of the siblings live close to the parent or have time available, then the question becomes how to divide the expense of hiring an in-home health aide or perhaps an assisted living facility, depending on the circumstances.

Good communication is probably the most important factor in making these decisions. Ideally, responsibilities will be divided in whatever way feels fair to everyone involved, and arriving at the best outcome depends on communication. Siblings should be encouraged to share exactly what they feel they should contribute and why. Factors such as an individual’s family income or work schedule are legitimate concerns that may play into decision-making. Feelings about this should be stated plainly so that later resentments can be avoided. Siblings should try their best not to let old sibling rivalries get in the way. Adult siblings caring for an elderly parent are taking on new roles, and they are best served by not replaying old ones.

In addition to family income and work schedules, siblings should consider each other’s particular skills. If one sibling is a more frugal money manager, it may make sense for him or her to hold the power of attorney for the parent. Someone with experience as a caregiver may do the best job handling day-to-day care. One fact that should not be forgotten is that caregiving is valuable and important work. Siblings who are not involved with day-to-day care may not be aware of just how much work is involved. The caregiving sibling should not be afraid to speak up and share with the others how much time goes into giving care for their parent. It can be easy for a sibling that is contributing more time or contributing more money to feel that his or her contribution is unfair or is going unrecognized. Full and frank discussion is the best solution.

Finally, as with most things, careful planning will save a lot of headaches. Just as mom or dad’s schedule of doctor’s appointments and daily medications needs to be kept track of, so should the finances be kept in careful order. An estate planning attorney or financial adviser can be invaluable in preparing a budget that accounts for the cost of different types of care that may be needed.

Estate Planning & Elder Law: What You Should Be Aware of If You Live in New York and Florida

Thursday, October 10th, 2013

Many New Yorkers retire in Florida, and many others choose to spend the winter months there while maintaining a residence in New York. As part-time New Yorkers and part-time Floridians, retirees have the best of both worlds. But living in two different states can present certain complications when it comes to estate planning and elder law.

One important consideration is where your legal residence will be, which can be important for purposes of estate taxes. Where you spend the most time may not be as important as where you are registered to vote, what state issued your driver’s license, and what address you list on tax documents.

Your will and any trusts should be tied to the state where you are a legal resident. However, if you own real estate in another state, you should have your estate planning attorney make sure that you do not need additional documents to transfer the property when you die or to manage it if you become incapacitated.

It is also important to make sure that documents such as a living will and health care power of attorney are valid in both states. If you happen to be traveling through another state and are hospitalized, out-of-state documents will probably not cause a problem. But if you spend a significant amount of time in another state, it is advisable to be sure that such documents comply with the laws of both states. If you spend a good deal of time in a state far away from close family members, then you may also want to consider naming a local family member or trusted friend in health documents, so that someone can get to a hospital quickly in the event of an emergency.

Littman Krooks is well-positioned to help you with these matters. Because so many of our clients live both in New York and Florida, we have partnered with Solkoff Legal, P.A. a leading Florida elder law firm, to offer superior estate planning and elder law services to residents of both states. Contact us for more information. Click here to read more about our alliance with Solkoff Legal.

 

For more information about our legal services, visit www.elderlawnewyork.com.