Articles Posted in Estate Planning

In a common law state (like New York State), an individual whether married or single, is a separate individual with separate legal rights to property and separate tax obligations. Common law states are typically referred to as “separate property” states. In a community property state (like California) a married couple each owns an undivided one-half…

A traditional Individual Retirement Account (IRA) is subject to rules that require withdrawals, known as Required Minimum Distributions (RMDs) at age 72. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (‘‘CARES Act”) was enacted in response to the coronavirus pandemic. Under the CARES Act, RMDs for IRAs are waived for calendar…

It is important to review your estate plan at regular intervals. While every family situation is different, it is generally advisable to review your estate plan at least every three to five years or sooner if any of the following events are applicable to your situation: Reviewing your estate plan regularly (and when major life…

In New York State organizers form a limited liability company (LLC) by filing Articles of Organization with the Department of State. Any person or business entity may be an organizer. The next step is very important: LLC members must enter into an operating agreement, which sets forth the rights of the members and the rules for…

A testamentary trust is a trust contained in a will. A will can contain one or many testamentary trusts each serving its own unique purpose. For example, a testamentary trust can be created to manage the inheritance of a minor child, or manage the inheritance of an individual with disabilities, or even manage the inheritance…

The laws in New York formerly required people to be in the same room to sign or witness documents like wills, trusts and powers of attorney. On March 7th Governor Cuomo issued an expanded emergency order that enables us to get documents signed, witnessed and notarized 100% by video conference. No need for anyone to…

Stimulus Payments: Up to $1,200 per person ($2,400 married joint) and $500 per child under 17. Eligibility is based on 2019 tax filing (2018 if not filed 2019). Tax Payment Due Dates: 2019 income tax returns and respective payments are due July 15, 2020. There is no cap on the amount of payments that can…

New York Governor Andrew Cuomo has issued Executive Order 202.7, which temporarily suspends the rule requiring physical appearance before a notary public until April 18, 2020. Key points of the executive order:

A spendthrift, of course, is a person who spends without regard to thrift. (When the word was coined, one meaning of “thrift” was “wealth,” so a spendthrift was originally one who spent his wealth.) Ordinarily, the interest held by a beneficiary in a trust is something a spendthrift can spend—an asset of the beneficiary, having…

Under the so-called three year rule, if an insured person transfers an insurance policy to an irrevocable life insurance trust, even though the insured may no longer retain any incidents of ownership, if he dies within the three year period following the transfer, the entire policy proceeds will be includable in the insured’s gross estate,…