COMPLIMENTS OF MINKO LAW OFFICE

Planning Your Estate With Privacy in Mind

By: The American Academy of Estate Planning Attorneys
www.aaepa.com • blog.aaepa.com

What would you think about your next-door neighbor or your nosy sister-in-law thumbing through the pages of your Will or perusing your financial records? The mere idea probably shocks and outrages you. Maybe it even embarrasses you a little.

Would you be surprised to find out that after you pass away, your Will is filed with your local probate court, and your probate file is open to the public? Anyone who is curious can walk into the courthouse, ask to see your file, and peruse the pages of your Will. In most states, probate files also include an inventory of all the assets controlled by your Will. This means that everyone from nosy neighbors to jealous relatives to telemarketers can find out all kinds of information you might prefer to keep private. For example, your probate file readily reveals:

• What property you left behind
• How much your property was worth
• Who inherited which items of property
• Which of your family members did not inherit property from you
• The names of each of your children, including those born outside of marriage

Not only can your probate file be used by scam artists to take advantage of your loved ones at a particularly vulnerable point in their lives, it can also reveal information that is hurtful to family members you’d prefer to protect.

If you are concerned about keeping the details of your estate plan private, a Trust is a better alternative than a Will. Like a Will, you can use a Trust to distribute property to loved ones, friends, and charitable causes after your death. However, with a Trust, you transfer title to the appropriate property to your Trustee while you are still alive. You keep control of the property during your lifetime, and your Trustee is required to follow your written instructions in distributing the property after your death.

Since your Trustee is the legal title holder, Trust property is not subject to Probate at your death. There is no need for a probate file at the courthouse. Instead, your Trustee distributes the property according to your wishes, and the terms of the Trust remain shielded from prying eyes.

The details of your estate plan do not have to be open to the public. An experienced estate planning attorney can help you put together an effective plan that protects your privacy.

About Our Law Firm

The Minko Law Office is devoted exclusively to estate planning. We are members of the American Academy of Estate Planning Attorneys and offer guidance and advice to our clients in every area of estate planning. We offer comprehensive and personalized estate planning consultations. For more information or attend an upcoming seminar, please contact us at (718) 238-1727 or visit us online at www.minkolaw.com.

About the American Academy of Estate Planning Attorneys

This article is written by the American Academy of Estate Planning Attorneys. The Academy regularly publishes articles on various estate planning topics as a free resource to consumers. These articles are intended as an overview of basic estate planning topics and issues, and not legal advice. We recommend that you consult with a qualified estate planning attorney to review your goals.

The Academy is a national organization dedicated to promoting excellence in estate planning by providing its exclusive membership of attorneys with up-to-date research on estate and tax planning, educational materials, and other important resources to empower them to provide superior estate planning services to families in their communities. The Academy expects members to have at least 36 hours of legal education each year specifically in estate, tax, probate and/or elder law subjects. Since 1993, the Academy has been a highly-regarded and sought-after resource for attorneys and consumers alike, and has been recognized by Consumer Reports, Suze Orman in her book, 9 Steps to Financial Freedom and numerous times by Money Magazine.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

Below is a recent article from the New York Times that discusses different forms of home ownership. Determining your existing form of ownership is an important starting point in the estate planning process. We often change the form of ownership of your property to make sure that it goes to the next generation smoothly, without court involvement and at the lowest possible cost.

Forms of Home Ownership

Written by Jay Romano, New York Times, Jan 11, 2011

A person can own a home in several ways – either on his or her own, with someone else, or with several others. It is even possible to “own” a home by owning shares or another form of interest in an entity – like a co-op corporation or a trust – that technically holds title to the property. And there are ways to own the right to live in a home without actually owning the home itself.

When someone owns property, she is free to do with it whatever she wants (subject, of course, to building and zoning laws, the right of the government to tax it and, in some cases, the right of the government to take it for public use through eminent domain).

Since the recession hit in 2008, real estate prices have fallen almost everywhere. Interest rates have declined. It would seem a good time — at least for those who resisted the temptations of easy credit in the last few years — to buy a vacation home. But lenders have toughened the rules on mortgages, making second-home purchases that much harder.

Teaming up with friends or relatives can prove a boon to the pocketbook as well as the relationship but — as with any financial arrangement — only if ground rules are established before the first check is written.

When two or more people own property, however, title can be held in different ways. Typically, when a husband and wife take title to property, they take it as “tenants by the entirety.” What that means is that each partner owns an undivided 100 percent interest in the property and each has an equal right to occupy it. If one spouse dies, the other automatically becomes the sole owner; the decedent’s interest does not pass through his estate because the survivor already owns 100 percent interest.

When two or more unmarried individuals take title to property, the usual form of ownership is tenancy in common. With this form of joint ownership, each person owns a specific percentage interest in the property. (The interests are often equal, but do not have to be.) Typically, all owners have the right to occupy the property, and any owner is free to sell his or her interest to a third party. If one owner dies, his interest in the property passes through his estate to heirs or beneficiaries.

Another way unmarried individuals can take title to property is as “joint tenants with the right of survivorship.” This is similar – but not identical – to the way a husband and wife can own property. With a joint tenancy, each owner has an undivided 100 percent interest in the property. If one owner dies, the survivor automatically becomes the sole owner.

Unlike a tenancy by the entirety between a husband and wife – which cannot be destroyed except by consent of the parties or as a result of a divorce – a joint tenancy can be destroyed unilaterally by one owner by simply selling his share to someone else. That person then becomes a tenant in common with the other owner, and the joint tenancy is dissolved. A joint owner can also force partition of the property – usually through a court-ordered sale of the respective ownership interests – and then the parties divide the proceeds.

Those are a few of the most common forms of ownership. Others include ownership by a corporation – either as a co-op or otherwise – and by a limited liability corporation (another form of corporate ownership that provides some enhanced protection against creditors). In some cases, property owners will place ownership of a property in a trust, and then retain the right to live in the property for as long as they want to or until they die. Of course, property laws vary from state to state, so the rights of joint tenants in one state may differ from those in another.

About Our Law Firm
The Minko Law Office is devoted exclusively to estate planning. We are members of the American Academy of Estate Planning Attorneys and offer guidance and advice to our clients in every area of estate planning. We offer comprehensive and personalized estate planning consultations. For more information or attend an upcoming seminar, please contact us at (718) 238-1727 or visit us online at www.minkolaw.com.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

COMPLIMENTS OF MINKO LAW OFFICE

Your Family Deserves More Than an Estate Plan

By: The American Academy of Estate Planning Attorneys
www.aaepa.com • blog.aaepa.com

We all want to do our very best to provide for our families, both during our lifetimes and after we’re gone. That is why we work hard, manage our finances carefully, and take estate planning seriously. The estate planning landscape has changed significantly in just a few years, and the opportunities are better than ever for those of us who want to leave a true legacy for our loved ones.

A generation or two ago, the best most people could do was to leave behind a good, solid Will. This allowed them to provide financially for their families and distribute their possessions in the way they saw fit.  Then, estate planning evolved to include disability planning. With disability planning, simple steps could be taken to prepare for situations like serious illness or injury. Proper planning smoothed the financial and medical transitions these situations brought on, keeping families out of court during an already stressful time in their lives.

Now, estate planning has further evolved to allow us to do even more for our loved ones. With Legacy Planning, we can go beyond allocating our financial wealth and making a disability plan. A Legacy Plan goes a step further, allowing us to pass on our true wealth — our values, wisdom, family history, and other non-financial wealth — in addition to providing long-term financial protection to those we leave behind.

With a Family Wealth Trust, you can use Legacy Planning to pass on your true wealth in the way that best suits your loved ones. When you establish a Family Wealth Trust, you select one of two levels of financial protection for your family members, depending on their needs: The Family Access Trust or the Family Sentry Trust.

The Family Access Trust keeps your children’s inheritances separate from their personal finances while allowing them full access to inherited funds. In most states, this arrangement is ideal for offering divorce protection for an adult child who is financially savvy and responsible with personal affairs. The Family Access Trust allows the use of an inheritance while ensuring that, in the event of a divorce, a former spouse does not walk away with a portion of your hard-earned nest egg.

If any of your children need a little additional help with financial management, the Family Sentry Trust might be the appropriate option. Under this arrangement, your child receives financial oversight from a third-party Trustee chosen by you. The Trustee follows your instructions in allowing your child to access Trust funds, protecting your child’s inheritance not only from divorce, but also from creditors, lawsuits, and poor financial decision-making.

If you want to leave a true legacy, a traditional estate plan is not enough. With a Family Wealth Trust, you can pass on your values, wisdom, and family heritage along with your nest egg. You can also provide your children’s inheritances with just the right amount of protection from the threats and challenges of life.
An estate planning attorney with experience in Legacy Planning can help you explore all the options for you and your family.

About Our Law Firm
The Minko Law Office is devoted exclusively to estate planning. We are members of the American Academy of Estate Planning Attorneys and offer guidance and advice to our clients in every area of estate planning. We offer comprehensive and personalized estate planning consultations. For more information or attend an upcoming seminar, please contact us at (718) 238-1727 or visit us online at www.minkolaw.com.

About the American Academy of Estate Planning Attorneys
This article is written by the American Academy of Estate Planning Attorneys. The Academy regularly publishes articles on various estate planning topics as a free resource to consumers. These articles are intended as an overview of basic estate planning topics and issues, and not legal advice. We recommend that you consult with a qualified estate planning attorney to review your goals.
The Academy is a national organization dedicated to promoting excellence in estate planning by providing its exclusive membership of attorneys with up-to-date research on estate and tax planning, educational materials, and other important resources to empower them to provide superior estate planning services to families in their communities. The Academy expects members to have at least 36 hours of legal education each year specifically in estate, tax, probate and/or elder law subjects. Since 1993, the Academy has been a highly-regarded and sought-after resource for attorneys and consumers alike, and has been recognized by Consumer Reports, Suze Orman in her book, 9 Steps to Financial Freedom and numerous times by Money Magazine.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

Most people are familiar with the arduous experience that happen’s after a person’s death.  If you don’t have experience with it first hand than you’ve probably at least heard of this process which is called probate.  In Latin the word probate means “to prove.”  When there is a will, you must go to court so the judge may prove or determine that the will is valid.  There are several important things that you need to be able to prove:

• The document you are presenting is indeed the will that the person intended to be presented as his or her last will and testament.
• The person whose will you are presenting is indeed dead.
• The will you are presenting has not been revoked.
• The will was appropriately executed and valid in the state in which it was executed.

Every state has distinct laws regarding probate, however in general terms these things can always be proved via an affidavit by the person appointed in the will as the deceased person’s personal representative.  That representative is called an executor (male) or and executrix (female).

Whenever a person dies without a will or with a will found to be invalid or incomplete, there is still probate and in most states there are additional concerns that must be researched and determined:

• Was the deceased married and survived by his or her spouse?
• Was the deceased survived by lineal descendants?
• Were the deceased children also the lineal descendants of the deceased’s spouse?
• Does the deceased have lineal descendants who are not the lineal descendants of the deceased’s surviving spouse?

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

With these goals we will consider the type of tax involved.  Tax related objective are commonly grouped into two categories: the first being income taxes and the second is for transfer taxes.  The former encompasses the  reduction of taxes through transferring the receipt of income, shifting the taxation of income, and deferring the recognition of income and gain.  The latter includes gift, estate, and generation-skipping taxes.  And when it comes to tax goals associated with the different transfer taxes, this includes the freezing or reduction of the value of assets that are subject to tax; utilizing exclusions, exemptions, deductions, and credits; and postponing the payment of taxes.  Stay tuned: there will be more on this to come!

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

When considering non-financial goals there are several issues: taking care of your dependents, appropriate asset distribution, and being able to control the assets after your death.  With regard to the support necessary for your dependents, each situation is different and the degree of planning will depend on the level of support that each dependent requires.  As an example, a child who would be  expected to reach adult age with full capabilities will need less planning than a disabled child where all of the basics of life will need to be planned for.  In this instance, careful thought ought to be given to who you will appoint for the responsibility of a disabled child’s clothing, food, and medical care.

More so than just deciding who gets what from your estate after your death, the appropriate distribution of assets involves the transfer of assets.  It is important that the transfer can be done as quickly and orderly as possible, so you’ll want to consider the most efficient way to transfer the assets as possible.

Control is another significant non-financial goal.  Those with a properly drawn will, can be certain that their assets will go to the people who they intend them to.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

The two areas of financial goals that we are concerned about with regards to estate planning are non-tax financial goals and tax-related financial goals.  Here, we’ll focus on the former which include preserving your business’s value, increasing your financial options with regard to your estate, securing all financial options for your surviving spouse, minimizing non-tax transfer costs, and maintaining adequate liquidity.  By minimizing your tax burden your financial goals with regard to taxes ought to include:

• Businesses: If business owner’s don’t plan properly, the value of the  business could take a nose dive after the owner’s death.  One can be sure to maintain this value by using buy-sell agreements when there are multiple owners.  In the buy-sell agreement one would spell out the distribution of the business upon one of the owner’s deaths.  These agreements are commonly funded with life insurance polices.
• Estate: What you want to remember is that it is important to make your liquid assets as easy a possible for your heirs to access after your death.  You can do this by using certain types of trusts, payable on death designations for bank accounts and transfer on death designations for brokerage accounts.
• Surviving Spouse: Keep in mind that in order to be sure that your spouse won’t be plummeted with a lot of taxes upon your death is to create a trust for the surviving spouse that gives him or her access to both the income and the principle of the trust.  One way to be sure you’re paying as little as possible in fees and costs for your estate planning is to include substitutes, such as taking a title to property with joint tenancy with right of survivorship.
• Liquidity: It is imperative to set aside enough cash within your estate to take care of all the immediate non-tax and tax costs of settling an estate.  Cash, and cash equivalents, may include money market accounts, IRAs, and other investments that can be easily converted to cash.  With regard to cash related concerns post death, they are most commonly met with life insurance policies during the planning of your estate plan.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

Estate planning is right for just about everyone.  It is not only for the very rich or very old any more.  Even though you may not be wealthy, some degree of planning will probably be necessary.  Here are some examples:

Minors: Parents need to legally indicate who they wish to care for their children after they die and more specifically how that care will be provided financially.  These provisions are normally made in your will.

Assets in multiples states: By having an estate plan in place, those people with real estate in a second state are able to avoid what is called ancillary probate, in which an additional probate process must be completed in that second state.

Small businesses: Entrepreneurs must determine what they would like to have happen to their share in the business – will it be passed on to your heirs or sold.  If it is to be sold, you need to ascertain that your share in the estate will be marketable at the time of your death.

Taxes: Some estates are large enough to require that taxes be paid upon death, in which case this is a payment that you will have to plan for.  Moreover, you will want to secure enough liquid assets to avoid the forced sale of estate assets.  This is regularly done through life-insurance planning.

Bequeathing: If you don’t specify how you want to divide your assets, the state will do so as part of the probate process.

High-liability: If your occupation positions you as a high risk  for being sued or for defending a creditors claims, estate planning will help protect your assets.  Doctors are excellent candidates for this type of planning.

Spouses: If your spouse is not a U.S. citizen, it will behoove you to provide for your spouse’s death.  The marital deduction will not be an option for you in most cases for a spouse who is not a U.S. citizen.

Disability: If you think you may become disabled, you’ll want to designate a surrogate decision maker as part of your estate planning process.  Therefore, your surrogate decision maker can provide medical and financial indications for you.  Another consideration may be to plan for potential Medicaid eligibility as part of your course.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

Estate Planning is the indication of  all the rights, titles, and interests that you have in the property you own.  When devising your estate plan you’ll want to keep in mind the accrual of your property, how you would like to maintain it’s value, and lastly how your estate will be disseminated upon your death.  Meanwhile, give careful thought to the most operative approach, keeping both tax and non-tax goals in mind.

Estate planning and financial planning overlap in some areas, including income-tax planning, investment planning, insurance planning, and retirement planning.  The three foremost objectives of estate planning in include: preserving the wealth that has been passed down through previous generations, using the wealth as desired during your lifetime, and passing on to your heirs the greatest possible amount of that wealth after your death.

There are, of course, several key words that are unique to estate planning.  They will be covered further in the future, but here is a brief overview: “Probate” means to prove…proving who is entitled to get the property if the person who died did not make that clear before his or her death either via a will or some type of trust.  “Testator” (male) and “testatrix” (female) refer to people who leave a valid will upon their death.  “Intestacy” is what an estate is called if there is no will.  Partial intestacy means the will did not effectively dispose of all the assets.

Three types of property classifications are generally used in estate planning: Real property includes land and any permanent improvements on that land.  Tangible personal property includes property other than real estate that has a value because of its physical existence.  This includes such things as cars, furniture, and collectibles.  Intangible personal property includes property that you can’t touch but that has a value because of the legal rights you hold.  This can include a stock certificate or an installment note but can also include copyrights, patents, and other intellectual property rights.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.

A common mistake that many people make is leaving a Last Will and Testament that is obviously out of date. No one is above it, not even the rich and famous. As a matter of fact, they make great examples. The following two cases portray the importance of keeping a current Last Will and Testament and are examples of the potential and costly ramifications that can haunt our legacy.

In 1953, Robert F. Kennedy (“Bobby”) named his brother, John F. Kennedy as successor guardian of his children. However, after the assassination of President John F. Kennedy ten years later, Bobby never amended his Will. When Bobby was himself assassinated just five years after his brother’s death this could have turned into a difficult situation. Incidentally, Bobby’s Will was written for a scenario just as this. If any of the executors failed to act, then there were specific persons listed to take the role.

It may seem strange that Bobby, a lawyer, failed to restate his Will after John was killed in 1963. Taking this a step further, it is even more baffling because Bobby was not just any attorney, but none other than the Attorney General of the United States of America. In my own practice, I have often come across lawyers that are remiss in maintaining current estate plans. Perhaps for Bobby, like most over-worked attorneys, his personal affairs took a back seat.

In 2001, Ted Ammon’s was murdered in his mansion in East Hampton, New York. Although he had been going through an obnoxious and nasty divorce, this rich kid never updated the Will that he had signed in 1995, before the divorce and before his murder. The Will left his wife, Generosa, everything. Generosa would have been entitled to nothing once the divorce was finalized. It never was.

At 45 pages long, Ted Ammon’s Will was the best money could find. At the time of his murder, he was still legally married to Generosa, and his Will was valid and admitted to probate. However unfortunate, his Will was out of date. One can’t help but wonder what was going through the minds of Mr. Ammon and his fine and fancy lawyer’s when they failed to revise his Will despite his imminent divorce. Let these stories be a word to the wise: Don’t put off until tomorrow, the will that you can update today.

The Minko Law Office is a member of the American Academy of Estate Planning Attorneys.