New York Probate and Estate Administration Blog

A California court has decided belief in a marriage can, in fact, make it legal when a man marries another woman before his divorce is final.
A state appeals court reinstated the lawsuit of a woman over the death of a man she may or may not have been married to for four years. In the eyes of the law, he was her husband, even though he married her while still legally married to another woman.
Similar suits have been rejected consistently for more than two decades, New York City Estate Planning Lawyers have discovered. Court after court rejected the suit until finally the Sixth District Court of Appeal in San Jose said because the plaintiff “believed in good faith” she was, in fact, legally married, she has marital rights, which includes the right to sue another party for wrongful death.
There was a decision in 1988 that declared claiming marital rights not only had to involve a sincere belief that the marriage was valid, but be “objectively reasonable”, as well. In that case, the alimony claim of a woman was rejected because she married a man in a religious ceremony that was not recognized by California law. The husband told her the marriage was perfectly valid – then decided two years later that it was not when he decided to marry another woman.
The court then ruled the woman who had gone through the ceremony had no marital rights, because though she believed she was married, that belief was unreasonable, New York City Probate Lawyers have learned.
The more recent ruling in the current lawsuit said the 1988 decision was wrong in that it distorted a law that should protect “innocent parties of an invalid marriage.” Now the suit of a woman married in September 2003 in a church may go on, even though the man involved was still married to another woman, unknown to her.
It was three months after the wedding before the divorce became final, but the purported wife did not read the divorce papers closely. She believed herself to be legally married until the man, an ironworker, died in a workplace accident. When she sued a contractor for negligence, the suit was dismissed on the grounds that she was never married to the ironworker. This case is being studied in Long Island and Westchester County.

Continue reading " Woman’s Wrongful Death Suit Reinstated in California " »

President Barack Obama has responded to calls from legislators to create a plan to reduce the deficit by proposing to limit the growth of Medicaid and Medicare while raising taxes on richest sector of the American populace.
Obama says his plan would reduce the deficit by $4 trillion over the next 12 years. For every $3 federal spending is cut, $1 would be raised in new taxes. In Nassau and Suffolk Counties, seniors are watching carefully to see what happens.
“We have to live within our means, we have to reduce our deficit, and we have to get back on a path that will allow us to pay down our debt,” the president said in a speech at George Washington University. “And we have to do it in a way that protects the recovery, and protects the investments we need to grow, creates jobs and win the future.”
NY City Probate Lawyers have noted that Obama’s plan could save $480 billion in Medicare and Medicaid, which provide medical care for the elderly and the poor, respectively. Unfortunately for him, any tampering with the income of these programs may well offend the president’s own party.
The non-partisan Congressional Budget Office has stated that if changes to these, and other, federal entitlement programs are not made, the only way to balance the budget would be massive tax increases. The CBO says the debt will increase by $7 trillion over the next ten years if no changes are made. It also said entitlement spending would go from 10 percent of the United States gross domestic product to 16 percent in the next 25 years.
“So here’s the truth,” the president said. “Around two-thirds of our budget – two thirds – is spent on Medicare, Medicaid, Social Security and national security.”
Obama’s plan, like the opposing deficit-reduction plan proposed by Senator Paul Ryan (R-Wis), does not make any changes to Social Security.
President Obama will let Vice President Joe Biden lead negotiations with House and Senate leaders to create a new compromise and reduce the federal deficit significantly, NYC Probate Lawyers have learned.

Continue reading " President Calls for Taxes on the Rich " »

The niece of a deceased ice cream chain owner has ended up in bankruptcy court, indicated a firm of New York Estate Planning Lawyers.
It is her assertion that she is the rightful heir and administrator of the ice cream fortune – not the foundation to which the money has gone. She already made several attempts in New York, before filing personal bankruptcy in Fort Lauderdale, saying she had $32 million in litigation claims as her assets.
There are some who say it was a good idea, legally, for her to file bankruptcy. It may have held back some orders from the New York judges who are still overseeing her conflict with the foundation. Unfortunately for the would-be heiress, it did not quite go that way.
Currently, the woman would like to be released from the bankruptcy court. The foundation is attempting to have her case converted to a Chapter 7. A trustee was set up to oversee her estate. One reason this was allowed, sources informed, is that the litigant was not insuring her property. A significant piece of said property was her Fort Lauderdale home, which has been assessed at $1.68 million.
The litigant filed a personal Chapter 11 bankruptcy in February. She has no attorney representing her. At the time of the filing, she claimed to have only $614,000 in assets.
It is difficult to gather further information on the woman – New York Probate Lawyers were unable to contact her and her Fort Lauderdale house appears abandoned.
According to the litigant, however, someone killed her uncle in 1990, after he learned someone was stealing from him. She attempted to get her uncle’s body exhumed in 2007, but a judge denied her request.
The ice cream chain owner started with only one delivery truck and expanded to more than 800 stores by the time of his death. Now based in Atlanta, the company can boast more than 500 franchised and food service locations. NY Estate Planning Lawyers are advising clients in New York City and Staten Island to be aware of this situation and take care not to wind up the same.
The company is part of an even larger company that franchises and operates more than 3,200 locations with such famous names as Cinnabon, Schlotzsky’s, and Auntie Annie’s Pretzels not only in the United States, but in 35 other countries as well.

Continue reading " South Florida Woman’s Fight for Inheritance Ends Up in Bankruptcy Court " »

Many people tend to overlook the likelihood of being hit with an estate tax because they aren’t considered “rich.” But according to NY Estate Lawyers many upper middle-class citizens could be hit with a tax rate as high as 35%.
Currently the law indicates an exemption for estate tax of up to $5 million for those who die in 2011 and 2012. What many people are unaware of is that this amount can easily be exceeded when you take life insurance coverage, a valuable home, healthy retirement balances and other assets into account.
“Don’t forget to count any private business ownership interests such as shares in a family corporation or partnership,” explained a New York Probate Lawyer.
He continued explaining an example about a divorced single parent. “She earns a healthy salary, she has a $4 million term life policy to provide for her three teenagers, has $800,000 of equity in her home, $1 million in retirement plan accounts, and $500,000 worth of assorted personal assets (cars, clothes, furniture, jewelry, and so forth). She has no debt other than her mortgage and because she has never considered herself to be anything close to ‘rich’ she has never done any estate-tax-avoidance planning.”
The lawyer explained that if she died tomorrow, her estate would be worth $6.3 million for federal estate tax purposes ($4 million + $800,000 + $1 million + $500,000), and her estate would accumulate a state bill of $455,000.
This scenario is all too common and they also add that for unmarried people, high life insurance coverage is the biggest reason for unexpected federal estate taxes. Married couples, he sited have an advantage because of the unlimited marital deduction privilege. This deduction is only good for U.S. citizens he added.
Lawyers are now recommending to their clients setting up an Irrevocable Life Insurance Trust. This basically helps avoid traditional estate taxes on the life insurance policy because it is not officially owned by anybody. The only catch is if you die within three years of setting up the trust you are subject to estate tax on it. People in The Bronx and Brooklyn should seek advice as to what road to follow.
In the end experts recommend talking to a professional to find out what your situation is. Although many people think they are exempt, often times they are not and only a professional can make the right recommendation. “It’s money well-spent,” one lawyer concluded.

Continue reading " Seeking an estate planning lawyer’s advice is essential " »

The late Anna Nicole Smith brought democrats and republicans together in her historical and controversial lawsuit, claims a New York City Probate Lawyer.

Smith had been married to billionaire J. Howard Marshall II for less than a year when he died. She claimed that he had promised her millions of dollars even though reports show he had cut the star out of his Will.

Smith reportedly tried to use her bankruptcy claim to over ride her late husband’s will and went on to claim that his son had manipulated the situation so he and the rest of the family would receive more money.

After the first round of verdicts on this case with just one judge, that ruled in Smith’s favor to the tune of $450 million, it became clear to court officials and liberals and conservatives the importance “That the constitutional guarantee that lawsuits will be decided by a fully independent and impartial judge.”

The second round of trials in Texas was more traditional with witnesses and an atmosphere that called Smith a liar basically. New York City Probate Lawyers called this trial “Hollywood style.” This would not be the case if this took place in Nassau or Suffolk County.

With this, new representation has been hired, “Mr. Davis, a liberal and former counsel to a Democratic president; Mr. Rivkin, a conservative and former counsel to a Republican president,” said a New York Estate Planning Lawyer.

Liberals, conservatives and the Supreme Court hope to find common ground with this case and make the right decision, concluded a Lawyer.

Continue reading " Liberals and conservatives can agree? New York Estate Planning Lawyers give their take. " »

Five of thousands of Medicare patients with “chronic” medical conditions not receiving coverage, together with five national organizations serving patients with multiple illnesses, filed a lawsuit recently in an effort to provide better care for these patients, said a NY Probate Lawyer. Patients in New York City and Long Island have been made aware of these conditions and the efforts to change things.

“It is illegal and unfair and an inappropriate application of the Medicare law,” said the founder and executive director of the Medicare Advocacy Center, a Washington, D.C.-based nonprofit organization that filed the lawsuit in Vermont federal court. “It is a major barrier to access to medical care and access to necessary care.”

The lawsuit basically says that coverage is being denied because of “an improvement standard,” which basically means that patients are denied treatment for occupational therapy and other physical remedies in situations that seem helpless. Examples include debilitating conditions like Multiple Sclerosis, Alzheimer’s and Parkinson’s disease.

“This is not just a theoretic problem but one that affects patients every day,” the executive director went on to say and added that the practice of denying coverage has been going on for much too long.

Many therapies that can be given at home are being denied and could strongly improve these patient’s conditions, said a NY Probate Lawyer. He added that the goal of this lawsuit is mainly to change the language in Medicare laws so that coverage will no longer be denied based on “the improvement standard.”

A representative from Medicare could not be reached for comment but one patient speculates the company will come forward in the next few weeks with a statement.

Continue reading " Lawsuit against the federal government seeks better treatment for Medicare patients, according to New York Estate Planning Lawyers " »

In 2010 when a person died, there would have been no estate tax owed, according to a New York Probate Lawyer. He added that in 2010 the estate tax had been repealed.
In 2011, estate taxes will be reinstated but a high amount of $5 million will be set. In the past, two spouses could individually file their own exemptions, which brought this number up to $10 million. The catch was they had to use caution with the way they labeled assets and had “to have bypass trusted drafted by estate planning attorneys”.
Trust preparation costs as much as $5,000 to $10,000. President Obama’s new tax law aims to create decent tax breaks for married couples because spouses can use leftover portions of a deceased spouse’s estate tax on their own exemptions with no trust requirements. This means a taxable estate of $3.5 million that is left behind could be added as part of the $5 million exemption for a later date or time. Families in Manhattan a Queens qualify for these advantages.
A New York Probate Lawyer calls this new tax law a great “portable” feature for estate money and preserving taxes. The only downfall according to some is the fact that the law was only signed for 2011 and 2012. Still, most agree the new law will provide great benefits to most people in the higher tax brackets and will save a lot of money on the potentially expensive trusts they will not have to create during this time.

Continue reading " What new tax laws will mean for married couples, explains New York Estate Planning Lawyers " »

During one of the state of Illinois’ largest ever tax increases; the new public act appears to contain a nice loophole for the wealthy deceased, said a New York Estate Planning lawyer.

Earlier this year the Governor of Illinois signed into law the Public Act 096-1496, the Taxpayer Accountability and Budget Stabilization Act.

Aside from increasing state income taxes on individuals and corporations, [it] reinstated the Illinois estate tax effective January 1, 2011, with a $2,000,000 exemption.

The estate tax in Illinois, which is not independent, is directly tied to the federal estate tax and is known as a “pick-up” estate tax.

Before EGTRRA, which was enacted in 2001, states that had a “pick-up” estate tax enjoyed a federal credit for state death taxes. Until 2010, Illinois incurred no federal state death tax credits, which caused a problem for taxpayers who assumed EGTRRA had continued to hold these estate taxes.

A New York Estate Planning Lawyer explained that the Illinois Attorney general had issued a warning last year about a possible reinstituted estate tax even though there currently is not one. He added that the Governor’s new law protects this possibility.

The new law clearly states that 2010 Illinois descendants will have no estate tax. Those who die after 2010, however, may be subject to a tax but have an exemption of up to $2 million. In the Bronx and Staten Island these changes are being studied to see how they might effect estates in NY.

Continue reading " Estate Tax Laws in Illinois worth looking into, writes a New York Probate Lawyer. " »

Senators recently detailed more of their plans to reform the tax system at the Heritage Foundation. Some of the things that they mentioned were liked, while others were not appreciated. The New York Estate Lawyer mentioned that the recent set of reforms will form a basis for many future reforms.
Conservatives aren’t however completely convinced that the new bill is a good idea. There have been many questions from the audience noted the New York Probate Lawyer. Many of the questions concentrated on the anti-estate tax movement. Many Conservatives are against the changes related to tax on probate cases.
Nobody likes paying taxes; it’s just something that everyone will have to put up with. For the reforms to succeed they will need to have bipartisan support. This is a bipartisan bill which should greatly improve the chances of creating something that people will appreciate.
The tax reforms are looking at trying to maximize the revenue earned by tax. These reforms are also ensuring that the tax rates for businesses are small enough to make it attractive to operate there. If tax rates are too high then many businesses will be tempted to relocate out of the state to save money. Keeping business taxes low are essential to new business.
Growth within America is Important for the economy as a whole. Everyone will benefit from more companies in the area. This includes people who will have more jobs, more investment, and a better standard of living.
This means that there will be a tradeoff. The tax rates need to be high enough to earn money, while low enough to prevent businesses from leaving the area.
There are also many discussions taking place over what to do with inheritance tax. This is the tax charged on possessions when they are transferred after a person’s death. There is a reason to keep these tax rates high – to earn more money. But also there is constant pressure to try and reduce the cost to bereaved families as much as possible. It may be possible to reduce your tax liability by discussing the situation with a New York Estate Planning Lawyer.

Continue reading " Tax Reform News for Inheritance " »

In spite of the stone-throwing and partisan pandering of last December’s revamp of US tax law, a New York Estate Planning Lawyer claims that there are a few hidden gems for families willing to dig through the rubble.

In particular, the New York Probate Lawyer singled out the new gift tax laws as a boon for those in high tax brackets.

The gift-tax exemption, the much maligned cap on individual giving, which has long been set at what some would consider a paltry one million dollars, has been raised dramatically for the next two years to the princely sum of five million dollars for individuals- or a whopping ten million dollars for individuals. Accountants in Nassau and Suffolk Counties are studying the new law and trying to find ways to help their clients.

The result of the new law is that wealthier families can now gift up to five (or ten) million dollars, before even a cent of federal taxation kicks in. Once over the federally allowed limit, givers still only face a 35 percent government tax, far lower than the previous 55 percent rate, reported the New York Estate Planning Lawyer.

In the wake of the change, families are rearranging their estate plans to take advantage of the two year opening. There is a great deal of uncertainty as to whether the tax reduction will be renewed beyond the initial two year period. Two years is generally regarded as a relatively short term for an estate tax law. The previous law was instated for a decade, before being ushered out in 2010. Some Estate Planners are heralding the move by Congress as the beginning of the end of the estate tax.

Continue reading " New Tax Law Could Benefit the Rich " »

According to one NY Probate Lawyer, this is the year to give. Thanks to sweeping changes in the laws governing the estate tax by President Obama late in 2010, making a lifetime gift is now easier than ever.

Lifetime gifts have long been the preferred method for transferring wealth from one family member to another. Lifetime gifts are not subjected to the heavy tax burden which posthumous gifts typically carry. The catch, in the past, was that lifetime gifts were capped at a relatively low level before the Gift Tax kicked in, meaning that the amount that could be transferred to a spouse or other loved one was actually quite small. The new law raises that cap to an all-time high.

If you are an Asset Planner or New York Estate Planning Lawyer, this new loophole could mean big business in the next two years. The new law is set to expire in 2012, and no additional plans have been made in Congress, meaning that the amount of time taxpayers have to take advantage of the new law could be short. Planners in New York City and Long Island are aware of these changes.

Some on Capitol Hill have indicated that this new wave of laws could be heralding the end of the estate tax itself. Others have indicated that it is only a temporary tax-relief outlet to stimulate the economy. In either case, estate planning lawyers are seeing an increase in the number of lifetime gifts, as well as in the number of “I love you” will, where couples with significant means leave assets directly to each other, without sheltering the money in a residuary trust, charitable fund, bypass trust, or other tax shelter annuity.

Continue reading " Considering A Lifetime Gift? This is Your Year, says New York Probate Lawyer " »