Posts Tagged ‘New york elder law’

Same Sex Couples and Retirement Planning

Sunday, March 21st, 2010

A large number of same-sex couples will be entering retirement in the next few years, and many of them will face great challenges in planning for their financial futures. The majority of these problems will stem from their unmarried status. Unmarried couples are not guaranteed the automatic legal protections that take effect when one member of a married couple dies. In addition, unmarried couples lack many of the other advantages in planning for financial security in their retirement; these are advantages that most couples take for granted.

Same-sex couples are at a disadvantage when it comes to receiving 401(k) benefits. Same-sex surviving spouses, unlike the surviving spouse in a married union, cannot directly receive the balance of their deceased spouse’s 401(k) plans. Because they must begin making withdrawals on the balance right away, they face a higher tax rate than their married counterparts and experience the loss of accruing interest. In addition, a married person can transfer his or her deceased spouse’s 401(k) funds into an IRA without paying taxes, yet a gay or lesbian who inherits 401(k) funds may end up paying up to 70 percent of those funds in taxes and penalties.

Pension benefits also do not apply to same-sex couples in that way that they apply to married couples. If a worker passes away, most pension plans will pay survivor benefits solely to a legal spouse of the participant. As such, gay and lesbian partners are excluded from these pension benefits. Not receiving these benefits could cause significant financial problems for surviving same-sex spouses.

In order to better plan for their future, same-sex couples should consult with an attorney who specializes in estate planning.

Federal Estate Tax Repealed for 2010

Wednesday, March 10th, 2010

The government recently eliminated the estate tax for the entire year of 2010. Effective January 1, no federal estate tax or generation-skipping taxes (GST) will be imposed upon individuals who pass away in 2010. Both federal estate taxes and GST taxes are to be reinstated in 2011, and there will be a $1 million exemption (for GST taxes) and a maximum federal tax rate of 55 percent. The million dollar exemption is less than the maximum exemption in 2009, which guaranteed a $3.5 million exemption. What this means is that there will be many more estates subject to estate tax in 2011.

While the current relief from estate taxes seems promising, the estates of those who pass away before the end of the year may not be given to their heirs free and clear. In fact, Congress may have the ability to reinstate estate taxes for this year and make them retroactive to January 1, 2010. If this happens, Congress may impose the rates from 2009 or they may increase these rates.

These changes in the estate tax law may significantly impact your estate planning documents. To learn more about how the change in estate tax affects you and your family, contact a lawyer who specializes in estate planning.

Same Sex Couples and Retirement Planning

Monday, February 22nd, 2010

A large number of same-sex couples will be entering retirement in the next few years, and many of them will face great challenges in planning for their financial futures. The majority of these problems will stem from their unmarried status. Unmarried couples are not guaranteed the automatic legal protections that take effect when one member of a married couple dies. In addition, unmarried couples lack many of the other advantages in planning for financial security in their retirement; these are advantages that most couples take for granted.

Same-sex couples are at a disadvantage when it comes to receiving 401(k) benefits. Same-sex surviving spouses, unlike the surviving spouse in a married union, cannot directly receive the balance of their deceased spouse’s 401(k) plans. Because they must begin making withdrawals on the balance right away, they face a higher tax rate than their married counterparts and experience the loss of accruing interest. In addition, a married person can transfer his or her deceased spouse’s 401(k) funds into an IRA without paying taxes, yet a gay or lesbian who inherits 401(k) funds may end up paying up to 70 percent of those funds in taxes and penalties.

Pension benefits also do not apply to same-sex couples in that way that they apply to married couples. If a worker passes away, most pension plans will pay survivor benefits solely to a legal spouse of the participant. As such, gay and lesbian partners are excluded from these pension benefits. Not receiving these benefits could cause significant financial problems for surviving same-sex spouses.

In order to better plan for their future, same-sex couples should consult with an attorney who specializes in estate planning.

Federal Estate Tax Repealed for 2010

Wednesday, February 3rd, 2010

The government recently eliminated the estate tax for the entire year of 2010. Effective January 1, no federal estate tax or generation-skipping taxes (GST) will be imposed upon individuals who pass away in 2010. Both federal estate taxes and GST taxes are to be reinstated in 2011, and there will be a $1 million exemption (for GST taxes) and a maximum federal tax rate of 55 percent. The million dollar exemption is less than the maximum exemption in 2009, which guaranteed a $3.5 million exemption. What this means is that there will be many more estates subject to estate tax in 2011.

While the current relief from estate taxes seems promising, the estates of those who pass away before the end of the year may not be given to their heirs free and clear. In fact, Congress may have the ability to reinstate estate taxes for this year and make them retroactive to January 1, 2010. If this happens, Congress may impose the rates from 2009 or they may increase these rates.

These changes in the estate tax law may significantly impact your estate planning documents. To learn more about how the change in estate tax affects you and your family, contact a lawyer who specializes in estate planning.

Living Will Hyperbole

Sunday, January 24th, 2010

The debate about health care reform, especially as it pertains to end-of-life issues, became increasingly contentious in “town hall” meetings across America, especially a few months ago. Some people claim that elder Americans were being herded into euthanasia and assisted suicide via rationing of medical treatment.

In fact, the Obama Administration’s health care reform initiative, although controversial, seemed intended to encourage potentially productive doctor-patient conversations concerning end-of-life issues that may be relevant to most anyone. In fact, a Living Will is good for individuals. It enables people to make essential choices about how they choose to end their days. Most attorneys already discuss these issues with their clients when preparing estate plans. Doctors often have these discussions now with their patients. The proposed health care reform initiative, depending upon what eventually emerges as law, should enable the doctor to be paid for spending the time to help patients think through these important decisions.

Proactive Elder Law attorneys continue to encourage their clients to create Living Wills and Advance Health Care Directives before it’s too late. Under the proposed legislation, doctors and their patients will now be encouraged to have this conversation, as well.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

When a Will and Testament Becomes Contested

Monday, January 18th, 2010

A Last Will and Testament is a legal declaration by which an individual provides for the transfer of property upon death and names one or more people to manage the estate.

Death is inevitable. But a careful choice in selecting an executor is seldom a given, especially where property and money are involved. During life, families may seem to get along fine, but the death of a loved one, considerable property to be disbursed, and an executor who seems unfair or biased — can be a recipe for conflict. The living, prior to their passing, don’t always write out their wishes in clear and concise ways. If there is uncertainty in a family about what might occur upon the death of a patriarch or matriarch, for instance, the atmosphere following death can resemble an emotional war zone.

An executor can help resolve such conflicts. The best executors execute their duties professionally, with tact, with due regard for family dynamics, and with professional guidance from a knowledgeable attorney. If a will contest nevertheless does occur, at least it should then be grounded in law and fair play.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.

The Scamming of Our Elders

Friday, January 15th, 2010

It happens as much through e-mail as it does through postal mail or telemarketing calls these days. You receive an offer you can’t refuse promising riches or else alleging that you’ve already won. If it seems too good to be true, it usually is.

You’re checking your email. A message arrives from someone you don’t know. He is begging for your help. The situation might seem contrived or even preposterous, but you are tempted. You can’t help reading it. If you help this person, providing information about yourself or your finances, and perhaps sending some money, the writer promises that you will be rewarded many times over. You fall for it. Perhaps you succumb more than once.

Sometimes a postal mail, email, or telemarketing call identifies you as a lottery or contest winner. It doesn’t matter that you never entered; this fact is clouded by the fact you’ve won. Why would someone tell you that you’ve won something when you haven’t?

Because, as is too often the case, you are being scammed.

Seniors are often unsophisticated Internet users and may also be vulnerable to “snail mail” cheats. They are targeted by scam artists eager to separate them from their money. Duped elders have lost assets acquired over a lifetime – sometimes tens or hundreds of thousands of dollars.

With the Internet’s global reach, countries such as Nigeria and Sierra Leone have emerged as “scam industry centers.” Elderly victims tend to fit a profile. They often live alone, may have recently lost a loved one, or may be experiencing the early signs of diminished capacity. Besides routine crime prevention steps that can be taken to protect a loved one, an attorney focusing their practice in Elder Law can establish some protection from con artists by building effective language into trusts and estate plans. In addition, a trusted family member can be given power of attorney over bank accounts and financial matters. But being scammed can be painful for young and old alike.

To learn more about New York Elder Law, NY Elder Law, New York Elder Care, NY Elder Care, or New York Estate Planning visit http://www.elderlawnewyork.com.